How does the privacy actually help though? Don't you still have to disclose ownership to the IRS and on bank account applications?

You're right that privacy doesn't extend to the IRS or banks - those disclosures are mandatory for tax compliance and anti-money laundering regulations. The privacy benefit is more about public records. In Wyoming, your name doesn't appear in the publicly searchable business registry, while Delaware requires more disclosure in their public filings. This can be important if you're concerned about competitors easily connecting you to your business, or if you have privacy concerns about having your name publicly linked to your business activities. Some of my clients prefer not knowing my other business relationships, and Wyoming's privacy helps maintain those boundaries.

Yes, you absolutely must file Form 5472 if you're a foreign-owned single-member LLC, regardless of which state you're in or your tax election status. This requirement was added in 2017 and it's a big deal - the penalty for not filing is $25,000! Even if your LLC is a "disregarded entity" for tax purposes, it's treated as a corporation SOLELY for the purpose of Form 5472 filing requirements. This catches a lot of foreign owners by surprise.

I'm confused about the home office deduction. I've been working fully remote since 2021 but my employer doesn't require it. Can I still claim my spare bedroom that I use as an office?

Unfortunately, if you're a W-2 employee (even if fully remote), the home office deduction typically isn't available to you anymore. This was suspended by the Tax Cuts and Jobs Act through 2025 for employees. The home office deduction is generally only available if you're self-employed or an independent contractor. If you have a side gig that you run from home in addition to your regular job, you might be able to claim the deduction for that portion of your work, but not for your primary employment.

That's probably for the landlord to complete, not you as the tenant. Some cities in California have rental registry programs where landlords have to register their rental properties and provide information about rent amounts, but those aren't tax forms for renters.

Good point about the state return! If I amend my federal return for this 1099 income, do I need to wait until the IRS processes that amendment before filing the state amendment? Or should I do both at the same time?

You should check your specific state's requirements as they vary. Most states want you to wait until the federal amendment is completed and accepted by the IRS before filing a state amendment. This is because they'll want you to include a copy of your federal acceptance letter or transcript showing the changes. Some states have a specific timeframe (like 60 or 90 days) after your federal amendment is finalized to submit your state amendment. Missing this deadline can result in penalties, so definitely check your state tax agency's website for their specific process.

It depends on who controlled the work. If the family directed exactly how and when care was provided, it might be household employment. If OP was more independent in providing care on their own terms, it's likely self-employment. The distinction matters because household employees don't pay self-employment tax, but employers should pay their share of FICA taxes.

But wouldn't they still have to pay self-employment tax too? Even with $40k net income, shouldn't that be more than $4k total tax between income tax and SE tax?

You're absolutely right about self-employment tax. Even with $40k net income, they would owe about 15.3% in self-employment tax alone, which would be around $6,120. Then they'd still owe some amount of income tax on top of that, even after taking the standard deduction.

That's a great point. For 2023, self-employed individuals could contribute up to $66,000 to a Solo 401(k) if they're under 50. Add in a maxed HSA contribution and some business expenses, and you could bring that taxable income way down legitimately.

Is there a cutoff for how far back you can claim refunds? I haven't filed for 6 years but had withholding the whole time.

Yes, there is a cutoff - it's 3 years from the original due date of the return. So for example, 2022 tax returns were due April 18, 2023, meaning you have until April 18, 2026 to claim any refund for that year. For 2021 returns, you have until April 15, 2025. Unfortunately for your situation with 6 unfiled years, you've likely lost the ability to claim refunds for the oldest 3 years, but you can still get refunds for the most recent 3 tax years if you're owed them.

This is 100% accurate. I work at a tax resolution firm and we help people with 10+ years of unfiled returns regularly. The IRS is far more reasonable than people think as long as you're making an effort to comply. They're not interested in sending people with regular jobs to prison.