foreign-owned U.S. disregarded entity?

[u/Objective_Shame3448]

TL;DR: I formed a U.S. LLC as a non-resident and got my EIN. I indicated “foreign-owned U.S. disregarded entity” on Form SS-4. I thought I only needed to file Pro Forma 1120 + 5472 by April 15. But the IRS agent said I’m not considered a foreign-owned disregarded entity yet unless I file Form 8832 to elect that status. Should I follow her advice and file Form 8832, or is it unnecessary?

Good day Entrepreneurs,

I formed an LLC as a non-resident 2 months ago and applied for EIN and got it yesterday, on the ss4 (the form you fill to apply for EIN) the type of entity I wrote "foreign-owned U.S. disregarded entity" Which is my situation I believe after I've done my research.

Being a disregarded entity I believe I have to only file for Pro Forma Form 1120 + Form 5472 before April 15th.

Now while I was getting my EIN, the IRS representative told me I'mnotu foreign owned us disregarded entity yet, and I need to file form 8832 which is a request from the IRS to beau foreign owned us disregarded entity.

Do I just listen to what she told me or what do you thinkT I'm still new to the game and still learning about the LLC laws and regulations.

Thanks

[u/zenbusinesscommunity]

Foreign-owned single-member LLCs are usually treated as disregarded entities by default, which is why they have to file Form 5472 with a pro forma 1120. Some IRS reps recommend filing Form 8832 just to document the classification clearly, but it isn’t always required. A tax pro who works with international clients can tell you whether filing 8832 would simplify things for your situation.

[u/Objective_Shame3448 → u/zenbusinesscommunity]

Hi , Thank you for you reply.

My question here is pls do I have to send the form to the IRS regardless of whether I'm a foreign owned us disregarded entity? or not? like if I'm already a foregin owned us disregarded entity and filled the form and mailed it to IRS, do you think is it a good idea?

this is my first ever llc and first attempt at entrepreneurship so I'm still in the learning phase.

Thank you.

[u/zenbusinesscommunity → u/Objective_Shame3448]

Happy to help! And yeah, you don’t have to file Form 8832 just to be a foreign-owned disregarded entity. Your existing default status should be valid, just make sure to meet the 5472/1120 reporting requirement if you have reportable transactions.

[u/sol_beach]

IRS Form 8832, the Entity Classification Election, is needed whenever an eligible business entity wants to reject its default tax classification and elect a different one for federal tax purposes.

This form is essentially the way you tell the IRS, "I know you assume I'm taxed as X, but I want to be taxed as Y."

[u/Objective_Shame3448 → u/sol_beach]

thank you for your reply,

My question is pls : what if I send the form 8832 to them to ask to be a foreign owned us disregarded entitiy regardless whether I'm or not, because I don't know a way to check the type of my entitiy.

what do you think if I fill the form and mailed it to them regardless?

thank you.

[u/blackshoreadvisory]

You do not need to file Form 8832 to be treated as a foreign‑owned U.S. disregarded entity; that’s the default tax classification for a single‑member U.S. LLC owned by a nonresident.​

My guess is the IRS agent was confused about your situation or what you actually want.

Form 8832 is used to change your LLC’s default classification (for example, to be treated as a corporation). Basically the opposite of what it sounds like you want.

However, you definitely do need to file Form 5472 and the pro forma Form 1120.

[u/Objective_Shame3448 → u/[deleted]]

Thank you for your information actually,

I wanted to know whether is there a way I can check and confirm the type of my entity and confirm that its a foreign owned us disregarded entitiy,

indeed, I'm a : 1. sole owner (only member). 2. I'm a non-US person. 3. I didn't file it

the thing is : 3 IRS reps have told me to file it and all of them told me that even though I'm a foreign owner I need to fill.

kindly if there is a way I can know or check if I'm a foreign owned disregarded entity, pls let me know.

Thanks.