@jamesbakercpa: Does Visiting the US Ruin Your Tax-Free LLC? Foreign entrepreneurs running single-member US LLCs must manage physical presence inside the United States to protect their non-resident tax status. Spending too much time in the US triggers tax residency rules and potential US income tax liability. Substantial presence test (SPT): The IRS measures tax residency using a 183-day weighted formula over a 3-year rolling period (100% of days in the current year + 1/3 of days in the prior year + 1/6 of days in the year before that). Staying under 120 days in the US every year keeps you safely below the threshold. Form 8840 (closer connection exception): If you exceed the 183-day calculation but spend fewer than 183 days in the current calendar year, you must file Form 8840 to prove your tax home and closer connection remain in a foreign country. Service performance location (ETBUS trigger): Under IRS Section 861, income earned from services is sourced to the physical location where the services are rendered. Performing work or hosting paid events while physically inside the US converts foreign-sourced revenue into taxable Effectively Connected Income (ECI). Protecting your tax-free status requires planning your US trips carefully before landing. 💬 Comment "JAMES" below and my team will help audit your setup and keep your tax structure compliant! #llc #internationaltax #cpa #usllc #taxconsultant
