I already understand the basics of the Foreign Earned Income Exclusion, but am interested in how it goes hand in hand with owning an LLC and being an independent contractor.

Anyone that has experience with this is welcome to chime in!

Dude...call my accountant.

lol who's your accountant?

While I'm not a lawyer and this is not legal, tax, medical or other advice, the general rules of thumb are this:

The entity that has to worry about it is the one listed in the CONTRACT.

90% of all law is CONTRACT LAW.

If the independent contractor is eligible for the FEIE, then that money is not taxable. THe LLC still has to pay taxes on the rest of it since the LLC did not 'go' anywhere. A good accountant will find training, equipment, and other costs as well as other goodies to spend the money on to ensure the LLC does not generate a substantial profit. Failure to generate ANY profit after 5 years will likely result in an audit. Pay the piper and that $56 bucks in taxes will help you sleep at night.


THe LLC is a separate 'person'. IN order for it to 'go' anywhere, it has to register in the new jurisdiction (e.g. IRAQ) as a resident foreign corporation and you need a lawyer who specializes in this sort of thing at this point. Probably not worth it if you gross under $1M USD/yr.

If the LLC owns vehicles, equipment, etc. which can be depreciated, make sure the accountant knows about it.

Any reputable CPA can work the LLC angle. If you meet the physical presence test, you should get the deduction on your income as an employee or contractor for your LLC. The LLC gets the opportunity to warp the tax code to it's favor. The accountant gets paid. The IRS gets to pretend it is omnipotent. Everyone goes home happy.

Thus endeth the sermon. This has been a religious experience, exempt from government monitoring under the US Constitution and it's amendments and not tax, legal, medical or other advice nor counsel. I recommend you find a qualified adviser if such people exist.

Thanks OS and bedpan!

Da nada.