I run a SaaS business through my foreign-owned LLC — are subscription revenues subject to U.S. tax?
I'm from Poland and I built a project management SaaS tool. I formed a Delaware LLC to accept payments from U.S. and international customers. Everything runs on AWS and I manage everything from Warsaw — no office, no employees, no servers physically in the U.S.
About 40% of my customers are in the U.S. ($120,000 out of $300,000 total revenue). I use Stripe for billing. Is this SaaS revenue considered ECI? And what about state taxes — some states seem to be taxing SaaS differently?
I've been filing Form 5472 but I'm worried I'm missing something big.
Related Questions
How is recurring subscription income taxed for my foreign-owned LLC?
I run an online membership community through my foreign-owned LLC. Members pay $29/month or $299/year for access to premium content, courses, and a private community. I'm based in Japan and the LLC is...
I run a Shopify store through my foreign-owned LLC — what tax compliance do I need?
I'm from Australia and I have a Delaware LLC that runs a Shopify store selling custom phone cases to U.S. customers. I handle all orders from my home in Sydney — I use a U.S. 3PL (third-party logistic...
I sell on eBay through my foreign-owned LLC — what are my U.S. tax obligations?
I'm based in Canada and I have a Florida LLC that I use for selling vintage electronics on eBay. I ship items from Canada to U.S. buyers. Some items I keep in a storage unit in Florida and ship from t...
How is Google AdSense and advertising revenue taxed for my foreign-owned LLC?
I operate content websites through my foreign-owned LLC (Delaware) and earn money primarily from Google AdSense, Mediavine, and sponsored posts. I'm from Nigeria and everything is managed from Lagos. ...
How is affiliate marketing income taxed in my foreign-owned LLC?
I run several niche websites through my foreign-owned Wyoming LLC. My revenue comes from affiliate commissions — Amazon Associates, CJ Affiliate, ShareASale, and some direct brand partnerships. I'm fr...
How do I determine if my foreign-owned LLC's e-commerce income is effectively connected income (ECI)?
I've read through all the threads here about ECI and I'm still confused. Everyone says 'it depends on the facts' but no one explains how to actually analyze those facts. I run three different business...
I have an Etsy shop selling handmade goods through my foreign-owned LLC — what taxes do I owe?
I'm a German citizen living in Berlin. I opened a Wyoming LLC and started selling handmade jewelry on Etsy to U.S. customers. I make everything at home in Germany and ship internationally. Revenue is ...
Do I need to charge sales tax on digital products sold through my foreign-owned LLC?
My foreign-owned LLC sells digital products — online courses, downloadable templates, and e-books. I'm from France and the LLC is registered in Delaware. Sales are about $75,000/year, with customers s...
I dropship through a foreign-owned LLC — products ship directly from China to U.S. customers. What are my tax obligations?
I'm from Turkey and I have a Wyoming LLC for my dropshipping business. I use Shopify for the store and AliExpress suppliers ship directly to my U.S. customers from China. I never touch the products — ...
I use Upwork and Fiverr through my foreign-owned LLC — what are my U.S. tax obligations?
I'm a web developer from Ukraine working through my Wyoming LLC on Upwork and Fiverr. I earn about $85,000/year from U.S. and international clients through these platforms. All work is done remotely f...
Have a similar question?
ForeignLLCTax members get expert answers with IRS citations. One CPA consultation costs $200+. Full access is $9.99/month.
Become a Member — $9.99/moDisclaimer: All content on ForeignLLCTax.com is created by a tax professional and is provided for general educational and informational purposes only. It does not constitute tax, legal, or accounting advice, and should not be relied upon as such. Every tax situation is different — for advice specific to your circumstances, please consult a licensed CPA, Enrolled Agent, or tax attorney. By using this website, purchasing a subscription, or accessing any tools or services, you acknowledge that no client-professional relationship is established between you and ForeignLLCTax.com or its operators. This website is not affiliated with the IRS.
