Form 8858 Filing for Foreign Disregarded Entities
Form 8858 is required from US persons who own foreign disregarded entities (FDEs) — such as certain single-member foreign LLCs that are treated as disregarded for US tax purposes. It's also required when a controlled foreign corporation (CFC) or foreign partnership owns an FDE. The form requires detailed financial information about the entity and the penalty for non-filing is $10,000 per form per year.
Get started with your filingWho this is for
- ✓ US citizens or green card holders who own a single-member foreign LLC classified as a disregarded entity
- ✓ Americans who set up a foreign operating structure in their country of residence
- ✓ US persons whose wholly-owned foreign entity is ignored for US federal income tax purposes
- ✓ Those operating through foreign structures in countries like Estonia (e-Residency), Ireland, or Singapore
What this filing may involve
Every situation is different. The forms below commonly apply — your specific filing may vary.
- 1 Form 8858 — Information Return of US Persons with Respect to Foreign Disregarded Entities
- 2 Form 5471 — if the FDE is owned by a controlled foreign corporation
- 3 Schedule C or Schedule E — the FDE's income flows through to your personal return
- 4 Form 1040 with all pass-through income from the disregarded entity
Documents usually needed
- 📄 Foreign entity formation documents (certificate of incorporation or registration)
- 📄 Entity financial statements (profit and loss, balance sheet)
- 📄 Country of organization and type of entity
- 📄 Details of the entity's activities and transactions with you
How Nomadic.Tax works
AI-assisted preparation with licensed professional review — every time.
We confirm whether your foreign entity qualifies as a disregarded entity for US tax purposes
Form 8858 is prepared with the entity's financial data and required disclosures
The entity's income is correctly reflected on your Form 1040
A licensed CPA reviews the complete international reporting package before filing
When human review matters
- ⓘ Default classification rules determine whether a foreign entity is disregarded or classified as a corporation — the entity type and country matter
- ⓘ If the entity has more than one owner, it cannot be disregarded and may require Form 8865 or 5471 instead
- ⓘ E-Residency Estonia OÜ companies owned by a single US person are a common Form 8858 scenario
Deeper reading on NomadIcTax.org, our educational resource site
Relevant plans
Choose the package that best fits your situation, or view all plans.
- ✓ Everything in Premier
- ✓ Foreign Earned Income Exclusion (Form 2555)
- ✓ Foreign Tax Credit (Form 1116)
- ✓ FBAR filing (FinCEN 114) included
- ✓ Everything in Expat
- ✓ Schedules D & E for investments and rentals
- ✓ Foreign asset reporting (Form 8938)
- ✓ FBAR filing (FinCEN 114) included
Frequently asked questions about Form 8858 Filing for Foreign Disregarded Entities
What is a foreign disregarded entity?
A foreign disregarded entity (FDE) is a foreign business entity with a single owner that is not treated as a corporation for US tax purposes — it's 'disregarded' as separate from its owner. Single-member LLCs in many countries can qualify as FDEs if the appropriate classification applies.
How is Form 8858 different from Form 5472?
Form 5472 is filed when a US entity (like a US LLC) is owned by a foreign person. Form 8858 is filed when a US person owns a foreign disregarded entity. Both relate to disregarded entities, but in opposite ownership directions.
What is the penalty for not filing Form 8858?
$10,000 per form per year. If not corrected after IRS notice, an additional $10,000 per 30-day period applies. The filing is mandatory even if the entity had no income.
Who is this for?
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