As a US citizen with a legal online business in America, can I live abroad for 11 months and still maintain my business?
So I've been dreaming about this digital nomad lifestyle for a while now. I have a legit online business that's registered in the US (LLC in Texas if that matters). The business has been running for about 3 years and brings in around $120k annually. Here's my situation - I want to travel through Southeast Asia and Europe for most of next year, basically living outside the US for about 11 months straight. I'd only come back to the States for maybe 3-4 weeks total. My question is - can I legally do this while maintaining my US-based business? Do I need to physically be present in the United States for a certain number of days each year to keep everything legit? Will the IRS have issues with this arrangement? I'm still a US citizen and would be filing US taxes. I'm worried about accidentally messing something up with taxes or business compliance requirements. Has anyone done something similar with their online business? Any advice would be super appreciated!
22 comments


Paolo Romano
Yes, you absolutely can run your US-based business while living abroad for extended periods. As a US citizen, you remain subject to US taxation on your worldwide income regardless of where you physically reside. The bigger considerations are actually: 1) Tax implications in the foreign countries where you'll be staying, and 2) Maintaining your business compliance in your state of registration. For your Texas LLC, you'll need to ensure you maintain a registered agent with a physical address in Texas who can receive legal documents. You'll also need to file your annual reports and pay any required fees to keep your LLC in good standing. The Foreign Earned Income Exclusion (FEIE) might benefit you if you qualify, allowing you to exclude up to about $120,000 of foreign earned income from US taxation in 2025. To qualify, you need to either establish a tax home in a foreign country and pass the bona fide residence test (living in a foreign country for an uninterrupted period including an entire tax year) OR pass the physical presence test (physically present in foreign countries for at least 330 days in a 12-month period).
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Amina Diop
•Thanks for the great info. Two questions: 1) If I'm just traveling on tourist visas and not actually establishing residence anywhere specific, can I still qualify for the FEIE? 2) For the Texas LLC, is using one of those registered agent services sufficient?
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Paolo Romano
•For the FEIE with the physical presence test, you don't need to establish residence in any single country - you just need to be physically outside the US for 330+ days in a 12-month period. So traveling on tourist visas can work fine as long as you meet that threshold and are legitimately working while abroad. For your Texas LLC, yes, using a commercial registered agent service is perfectly adequate and what many business owners do. They typically cost $100-200 annually and will forward any important correspondence to you wherever you are.
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Oliver Schmidt
Hey there! I was in a similar situation last year with my e-commerce business. I was so confused about all the tax implications of living abroad while running my US business. I stumbled across this service called taxr.ai (https://taxr.ai) that literally saved me thousands in potential tax issues. They analyzed my specific situation and explained exactly how the Foreign Earned Income Exclusion would apply to my business income as a single-member LLC. They also pointed out I needed to consider state tax domicile issues and helped me plan the right documentation to prove my foreign presence to qualify for the exclusions. What made the biggest difference was their help with tracking my days in/out of the US and understanding how different countries' tax treaties would affect me. They even helped me determine which business expenses would still be deductible while abroad!
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Natasha Volkov
•Did they help with figuring out social security contributions? I'm planning to do something similar but heard horror stories about people getting double-taxed on social security in some countries.
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Javier Torres
•How did they handle the physical presence test documentation? Like do they help you track days or just advise? I'm worried about messing up the counting and losing the exclusion.
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Oliver Schmidt
•They actually gave me a complete breakdown of how social security agreements work with different countries! Some countries have "totalization agreements" with the US that prevent double taxation, while others don't. They explained exactly which forms I needed to file to avoid paying into both systems. For the physical presence test documentation, they provided me with a specialized tracking tool that integrates with my calendar and helps document my location with evidence like receipts and border stamps. They don't just count days - they help you gather proper documentation that would stand up during an audit. They emphasized having both digital and physical evidence of my whereabouts that the IRS would accept.
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Javier Torres
Just wanted to provide an update after using taxr.ai. I was super nervous about maintaining my Etsy business while traveling through Portugal and Croatia for most of this year. I had so many questions about whether I'd lose my LLC status and how taxes would work. The service honestly changed everything for me. Their analysis showed I could save around $18,000 using the Foreign Earned Income Exclusion properly, but I had to be careful about how I structured my time abroad. They helped me plan my year to ensure I hit the 330 days outside the US. The most helpful part was their guidance on which business expenses remained deductible (home office in foreign rentals was tricky) and how to maintain my banking and payment processing while abroad. They even helped me with the state tax issues I would have completely overlooked. Definitely worth checking out if you're planning extended travel while running a business!
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Emma Wilson
I see you're getting tax advice which is great, but don't overlook another huge challenge: actually reaching the IRS when inevitable questions come up while you're abroad. I spent MONTHS trying to resolve an issue with my Foreign Earned Income Exclusion last year because I couldn't get through to the IRS international tax department. After wasting countless hours with disconnected calls and 2+ hour holds that went nowhere, I found this service called Claimyr (https://claimyr.com). You can see how it works here: https://youtu.be/_kiP6q8DX5c Basically, they get you through to an actual human at the IRS quickly. I was skeptical but desperate after my sixth failed attempt to reach someone. They got me through to the international tax department in about 20 minutes when I had been trying unsuccessfully for weeks. The agent was able to resolve my issue with the Foreign Earned Income Exclusion documentation that had been holding up my refund.
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QuantumLeap
•Wait this sounds like BS. How can they get you through faster than just calling yourself? Isn't it just the same phone line?
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Malik Johnson
•Do they work for questions about state taxes too or just federal IRS issues? I have a CA business but want to travel abroad and know CA is super aggressive about claiming residents.
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Emma Wilson
•It's not BS at all. They use a proprietary system that navigates the IRS phone tree and waits on hold for you, then calls you when an actual agent is on the line. It's the same phone line but their system is constantly dialing and navigating the prompts so you don't have to waste your time doing it. The IRS phone system is absolutely overwhelmed, especially for international tax issues. Yes, they work for state tax agencies too, including California's FTB which is notoriously difficult to reach. I know several digital nomads with CA businesses who've used it to resolve tax residency questions with the state. They support pretty much all the major tax agencies including state departments of revenue.
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QuantumLeap
Just wanted to eat my words from earlier. After another failed 2-hour attempt to reach the IRS about my foreign income reporting, I tried Claimyr out of pure frustration. Holy crap it actually works. I was connected to an IRS agent within 30 minutes after spending WEEKS trying on my own. The agent cleared up my confusion about how to report my business income while I was abroad last year. Turns out I had been filling out Form 8938 incorrectly and might have triggered an audit. For anyone running a US business from overseas, being able to actually talk to the IRS when issues come up is absolutely critical. I'm now getting a $4,300 refund that had been held up because of my reporting error. Never thought I'd be recommending a service like this, but it genuinely solved a massive headache.
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Isabella Santos
Something nobody's mentioned yet - you need to think about banking issues too. Many US banks will shut down your accounts if they detect you're primarily accessing from foreign IPs for extended periods. I had Chase freeze my business account while I was in Thailand for 6 months and it was a NIGHTMARE to fix. My recommendations: 1) Set up a VPN that gives you a US IP address 2) Notify your bank before you leave about your travel plans 3) Consider keeping a secondary bank account with an international-friendly bank like Charles Schwab 4) Make sure you have multiple ways to access your business funds Also, payment processors like Stripe and PayPal can sometimes limit functionality if they detect foreign access. Again, VPN is your friend here.
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Ravi Sharma
•Did you have any issues with maintaining a business credit card while abroad? I'm worried about losing my business credit line if I'm out of the country too long.
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Isabella Santos
•I didn't have issues with my business credit cards specifically, but I made sure to set up autopay for the minimum payment on all of them before leaving. I also maintained a US mailing address (my parents) for receiving statements and new cards. American Express seemed to be the most international-friendly in my experience, and their customer service was actually able to mail a replacement card to me in Vietnam when mine was compromised. Capital One was decent too, but Bank of America was problematic with foreign transactions despite my travel notifications.
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Freya Larsen
Don't forget about health insurance! This was a major oversight in my planning when I did something similar in 2023. Regular US health insurance often provides zero coverage outside the country except for emergencies. And many international health insurance plans don't cover you when you return to the US for those few weeks. I ended up getting a global health insurance plan through Cigna Global that covered me everywhere including my brief US visits. Cost about $180/month with a high deductible. Worth every penny when I got food poisoning in Malaysia!
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Omar Hassan
•Did you maintain any US coverage for when you came back briefly? I'm planning 10 months abroad but will be back for 2 months spread throughout the year.
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Chloe Taylor
•World Nomads is cheaper than Cigna for travel insurance with medical. Did you compare them?
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ShadowHunter
Speaking from experience (3 years running a US-based online marketing business while traveling), the technical/practical aspects were actually harder than the legal/tax aspects. Time zone challenges when clients expect meetings during US business hours but you're in Asia was brutal. Internet reliability is another huge factor - I learned to always have backup internet options (local SIM with hotspot capability + regular wifi). Also recommend setting up a good VoIP phone service that lets you maintain a US number. I use Google Voice which lets me make/receive US calls from anywhere. Clients never knew I was responding from a beach in Bali at 11pm my time.
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Sofía Rodríguez
One thing I haven't seen mentioned yet is visa requirements and how they might affect your tax situation. While you can absolutely run your US business from abroad, some countries have strict rules about working on tourist visas, even if it's remote work for a US company. Countries like Thailand, Vietnam, and several European nations are cracking down on "digital nomads" working on tourist visas. Getting caught could result in deportation and future visa denials. Consider looking into digital nomad visas that several countries now offer - Portugal, Estonia, and Barbados have legitimate remote work visas. Also, be aware that spending too much time in certain countries (usually 183+ days) can trigger tax residency there, which could complicate your US tax situation even with the FEIE. Each country has different thresholds and rules. I'd strongly recommend consulting with both a US international tax attorney AND researching the work visa requirements for each country you plan to visit. The $500-1000 you spend on proper legal advice upfront could save you from major legal and tax headaches down the road.
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StarStrider
•This is such an important point that people often overlook! I'm actually planning something similar and had no idea about the 183-day tax residency rules. Do you know if there's a good resource to check these thresholds for different countries? I was planning to spend about 4 months in Portugal and 3 months in Thailand, so I want to make sure I don't accidentally trigger tax residency anywhere. Also curious about the digital nomad visas - do those change your tax situation at all compared to being on a tourist visa? I assume having official permission to work remotely is better than the gray area of tourist visas, but wasn't sure if it creates any additional tax obligations.
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