Nonresident Tax Issues

EIN and FORMS

Asked Friday, April 10, 2026 by CHAO

My company is a non-U.S. resident, single-member LLC registered in 2025. It has no business operations, no physical presence, no employees, and has not applied for an EIN number. Therefore, I cannot file Forms 5472 and 1120, nor can I file Form 7004. What should I do?

Quick Answer:

Your understanding regarding the inability to file without an EIN is correct. However, for a non-U.S. resident, single-member LLC, there are specific requirements you need to be aware of:

Nonresident Tax Issues

nonresident

Asked Wednesday, March 18, 2026 by Akram

I would prefer to communicate by email if that is okay with you. I will file as a California nonresident for 2025. I was outside the U.S. all year and performed no work in California. I received: W-2 sick/vacation/holiday wages from a CA employer W-2 short-term disability from a NY insurer, with premiums paid by the CA employer (while I was working in CA) Bank interest from an online account Are any of these considered California-source income and taxable by CA for a nonresident?

Quick Answer:

For a California nonresident, the sourcing of income depends on where the underlying economic activity or services occurred. 1. **W-2 sick/vacation/holiday wages from a CA employer:** These

Nonresident Tax Issues

Taxes listed an earned in another state

Asked Friday, March 06, 2026 by Amanda

I worked remote in de. My co. Listed me as working in n.c. for about a week (less than 2 k). I received tax documents for n.c and de (where I live and work). I was in n.c. for 3 days for an all hands meeting. Should I file in n.c.?

Quick Answer:

Based on the information provided, if you were physically present in North Carolina for 3 days for work-related activities and earned income during that time, that income is generally considered North...

Nonresident Tax Issues

Which State Do We Pay

Asked Friday, February 27, 2026 by Shelley

I have a business in one state and 1 employee who lives and does their job in another state (works remotely for us). Do we pay the state withholding and state unemployment to the state where we are located for that employee or do we pay the state where the employee lives and performs their work?

Quick Answer:

For state income tax withholding, you generally pay to the state where the employee performs their work. Since your employee lives and works entirely in the second state, you would typically withhold...

Nonresident Tax Issues

5472 form

Asked Wednesday, February 04, 2026 by Alin

Hello, I require assistance with filing my 5472 form. I'm finding the form quite complex and would appreciate any guidance you can offer. Please tell me about the price and support you provide for completing this form. Thank you.

Quick Answer:

Thank you for reaching out regarding Form 5472. I understand its complexity. My scope is limited to answering tax questions directly related to tax law and regulations. Therefore, I cannot provide in...

Nonresident Tax Issues

Gift taxation foreign person

Asked Thursday, December 18, 2025 by Sandra

Non-US citizen and non-US resident (nonresident alien) with a US bank account want to gift a total of up to $100,000 in cash this year to 2 children who are US citizens and US residents. The gifts will be wire transfers or checks from their US bank account. Questions: Is this gift subject to US gift tax for me (the donor)? Is the gift considered taxable income to my children (the recipients)? Is it up to 100k per year with no reporting filing 3520?

Quick Answer:

As a nonresident alien, your gift of cash, whether from a U.S. bank account or wired, is generally not subject to U.S. gift tax. Cash is considered intangible property and is

Nonresident Tax Issues

Federal taxes

Asked Thursday, September 18, 2025 by Simo

I opened a company in Wyoming last year Eternia Solutions LLC as a sole proprietorship (single-member LLC disregarded for tax purposes). I was told that there is no state tax in Wyoming, but I want to confirm how federal taxes work in my situation. I am not resident of USA. This year my company’s revenue will be about $32,855. I have withdraw ~$9,780 via ATM, and probably i will withdraw the rest. I heard that there are some federal taxes, even WY is tax free. I need clarification about this?

CPA Answer:

Hi Simo,


Hope you're doing well.


Whether federal tax applies depends on whether the income earned by your Wyoming LLC is treated as effectively connected income (ECI) with the United States. If the activity is considered ECI, federal tax would generally apply and a Form 1040-NR filing would be required. If it is not ECI, the U.S. may still have other reporting requirements depending on the nature of the income and where the services are performed, but federal income tax may not be triggered.


Let me know if you’d like a detailed review of your specific situation.

Regards,

Alfaisal

CPAdirectory
Answer Provided by: CPAdirectory

Nonresident Tax Issues

Rental income tax for foreign property buyer

Asked Saturday, September 14, 2024 by Laura

Hi, we are non US residents and considering buying an investment property in Florida. Would like to get some advice on the tax implications if we rent it out and annual tax preparation matters. Thank you.

CPA Answer:

Hi Laura-

This is not a simple question but I will give you the basics. However, I recommend that you get further advice beyond here. In general, if you have a rental property in the US, you will need to file as a non-resident. Florida does not have a state income tax but you would need to research whether they have any Franchise Taxes or Lodging Taxes that your property would be subject to. Hope this is helpful. Jackie

Answer Provided by: Jackie Compton Jackie Compton

Nonresident Tax Issues

First LLC: No Income, No Expense Filing

Asked Thursday, March 21, 2024 by Marcus

Curious to know if an LLC would be subject to taxation if it were to incur zero income and expense? And how to file them.

CPA Answer:

Hi Marcus,

Choosing the appropriate legal entity depends on many factors including the type of business, types of services, future operational expectations, etc.  Most people that are starting a business will either choose to be a Sole Proprietor or and LLC; however, in some circumstances, starting as an S-Corp or C-Corp make the most sense.  If your business has some risk that you would like to separate from your personal finances, you may want to start out as an LLC.

To answer the question based on your current situation, since your business has zero income and expenses, there will be no tax impact since there will be nothing being passed on to you to be taxed. 

Answer Provided by: Christopher Kent Christopher Kent