Real Tax Questions, Expert Answers
Get answers to your foreign-owned LLC tax questions from ForeignLLCTax. Every answer includes IRS source citations and step-by-step guidance.
I'm from Brazil — how does my U.S. LLC get taxed?
I am a Brazilian citizen and tax resident in São Paulo. I formed a Wyoming LLC for my digital marketing consulting business. I work from Brazil serving U.S. and international clients. What are my U.S....
I want to transfer cash to my spouse in 2026, but my spouse is not a U.S. citizen. Is there still a limit even if we are married?
I am a nonresident donor and my spouse also is not a U.S. citizen. Family members keep assuming that spouse transfers are automatically unlimited because they are thinking about the normal marital ded...
My father lived in Argentina and owned assets worldwide, but only some were in the U.S. Does Form 706-NA look only at the U.S. property?
My father was not a U.S. citizen and did not live in the United States, but he did own a Florida condo, some U.S. securities, and other assets entirely outside the U.S. Family members keep mixing dome...
What are the penalties if my foreign-owned LLC is late on payroll tax deposits or filings?
I'm behind on payroll tax deposits for my foreign-owned LLC. I missed two monthly EFTPS deposits and I'm panicking. How bad are the penalties? I've heard the IRS is extremely aggressive about employme...
The buyer says FIRPTA should be 15% of my profit, not 15% of the sales price. Is that right?
I am selling a condo in Florida as a nonresident seller from Germany. The buyer is trying to be cooperative, but they are also using internet summaries that seem to blend final tax with FIRPTA withhol...
H-1B visa holders owning a U.S. LLC
I am on an H-1B visa working for a tech company. I have a side business idea and want to form a U.S. LLC. I have heard conflicting information about whether H-1B holders can own an LLC. Can I form and...
Our partnership retained all profits for growth. Do we still owe section 1446 withholding for the foreign partners?
We have a U.S. trade or business through the partnership, but we reinvested everything and made no distributions this year. Because no cash went out to partners, one founder keeps arguing there cannot...
A U.S. tax preparer told me to elect S corporation status for payroll savings, but I am still a nonresident alien. Is that even allowed?
I am a founder from Turkey with a New Mexico LLC. The business is profitable enough that people keep bringing up the classic S-corp strategy for reducing self-employment tax, but every time I read the...
How do I report cryptocurrency income earned through my foreign-owned U.S. LLC?
I'm a non-resident alien who owns a single-member LLC in Wyoming. The LLC receives crypto payments from clients for freelance consulting work. Some payments are in Bitcoin, some in USDC. I convert mos...
If I file a nonresident return with ECI, can my nomad health insurance even belong in the deduction conversation?
I live in the UAE and carry international health insurance because I move around a lot. This year I may have a nonresident U.S. return with effectively connected income, and I am trying to understand ...
I became a U.S. resident during the year but was resident on December 31. Is a dual-status return still the right frame?
I live in Canada and used to think of the whole year as nonresident, but after reviewing my travel I realized I became a U.S. resident partway through the year and was still one on the last day of the...
I bounce between Bali, Bangkok, and short U.S. stays. At what point do I start looking like an itinerant with no clear tax home?
I spend a lot of time moving between Bali, Bangkok, and occasional trips to the United States. I run everything through a U.S. LLC and work online, so from a business perspective it feels efficient. T...
I spent 170 days in the U.S. and the rest in Portugal. Is Form 8840 my main defense now?
I live mostly in Portugal and run a Delaware LLC remotely. This year I spent about 170 days in the United States for travel, family visits, and a few work trips, which is more than I am comfortable wi...
I paid several LLC bills personally and never reimbursed myself. Does that still need a clean Form 5472 story?
I live in Colombia and my Delaware LLC was underfunded for most of the year, so I kept paying subscriptions, contractors, and filing fees from my personal foreign cards. I never reimbursed myself beca...
Stripe wants more bank verification because the account name does not line up cleanly. Is that a normal red flag?
I live in the UAE and my Stripe account is under the LLC, but the bank relationship is a little messy because the receiving account was opened during a transition period and the naming convention does...
My foreign LLC's bank account was frozen — what should I do?
I woke up this morning and can't access my Mercury account. When I try to log in, it says my account is under review. I have about $12,000 in the account and two client payments are supposed to come i...
I keep wiring money from my personal foreign account into the LLC. How do I decide whether that was capital or a loan for Form 5472?
I live in Brazil and own a single-member Delaware LLC. Over the last year I sent several personal wires into the company to cover software bills, contractors, and a few large formation costs. I never ...
I run a foreign company registered in a U.S. state. After the 2025 BOI changes, am I still one of the people who files?
I live in Japan and the main company is formed outside the United States, but it is registered to do business in a U.S. state because of our operations there. I keep seeing headlines saying BOI is gon...
My U.S. controller can move money from our foreign account but does not own it. Is that the kind of FBAR issue people miss?
I live in Germany and own a U.S. LLC with a foreign currency account overseas. We recently hired a U.S.-based controller who has online access and the ability to approve certain payments, but he does ...
Stripe payouts slowed down after refunds and disputes. Is the real issue the negative balance month?
I live in the UAE and run a software business through a Delaware LLC. Last month we had a cluster of refunds and one dispute, and now Stripe payouts feel slower and less predictable than before. Nothi...
Mercury says my principal place of business cannot be my registered agent. Why is that such a hard rule?
I live in India and my Delaware LLC already has a good registered agent and mail setup. Mercury is now asking for a principal place of business and explicitly says it cannot be a registered agent or v...
Wise rejected my registered agent address. What address are they actually looking for?
I live in Singapore and formed a Delaware LLC. I assumed my registered agent address would be enough for Wise because it works fine for formation documents and some basic vendor forms. Instead, Wise a...
I stayed in the U.S. for 190 days but still think of myself as foreign. Does that make my stock gains a bigger U.S. tax issue now?
I live in Australia and use a U.S. LLC for an active brokerage account. This year I ended up spending about 190 days in the United States because of family and travel overlap, even though I do not thi...
My U.S. broker sent a 1042-S instead of a 1099. Is that a red flag or just how foreign accounts are supposed to work?
I am in India and use a foreign-owned LLC for a brokerage account. This year I received a 1042-S instead of the kind of 1099 reporting I see U.S. traders talk about online. That makes me nervous becau...
I learned about section 475 after the year started. Did I already miss the election window?
I am in the UK and trade full time through my U.S. LLC. I only recently learned what section 475(f) does, and now I am seeing references that the election deadline arrives before the year it applies t...
I trade options almost every day through my LLC. Does that automatically make me a trader for tax purposes?
I live in Singapore and use a Wyoming LLC for an active options account. I trade most weekdays and my holding periods are usually short, so I have been casually calling myself a trader. The problem is...
My warehouse helper in Texas works regular shifts. Can I still call him a contractor because he has his own LLC?
I am based in Brazil and use a U.S. LLC to import products. We have one person in Texas who helps with receiving inventory, packing, and occasional returns. He invoices through his own small LLC, whic...
My payroll service missed a deposit for our first U.S. employee. Is that really still my LLC's problem?
I live in Mexico and hired our first U.S. employee through a payroll provider because I wanted the setup to be handled professionally. Now the provider says one federal tax deposit was delayed, and my...
My first U.S. shipment is ready, but my broker keeps asking about importer setup and bond details. What do I actually need to confirm?
I live in the UAE and formed a Delaware LLC to import home goods into the United States. My customs broker is now asking me to confirm the importer of record details, identification number, and whethe...
Amazon sent me a 1042-S for affiliate commissions. Does that automatically mean I now file a U.S. return?
I am in the UK and run content sites through a U.S. LLC. Amazon Associates issued a 1042-S showing some U.S.-source amount and withholding. I understand that the form reports something real, but I do ...
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