IRS Form 8802 and Why It Matters for Indian-Owned US LLCs?

Introduction

If you’re an Indian entrepreneur running a U.S. LLC and want to avoid paying taxes twice (in India and the U.S.), there’s one form you should know: IRS Form 8802. Filing this helps you get a Tax Residency Certificate (called Form 6166), which proves to other countries that your company is a U.S. resident for tax purposes. This certificate is key when you want to claim tax treaty benefits, reduce foreign tax withholding, and stay compliant with international tax norms.

Why Form 8802 is Important for Indian Business Owners?

• It proves that your U.S. LLC is a resident entity for tax purposes under U.S. law.
• Helps you claim reduced tax rates or even full exemptions in other countries due to tax treaties.
• Avoids double taxation on income earned in countries outside the U.S.
• Many countries will not honor a tax treaty unless you provide this residency certificate.

What Is IRS Form 8802?

Think of Form 8802 as a request form. You file it with the IRS to get an official document — called Form 6166 — that proves your company is based in the U.S. for tax purposes. It’s especially useful when your LLC earns money from another country and that country asks for proof that you already pay U.S. taxes

Common Scenarios for Indian Entrepreneurs

• You run a U.S. LLC from India and receive income from the U.S., EU, UK, or other countries.
• A foreign client asks for proof of your U.S. tax residency to reduce withholding tax on your invoice.
• You want to avoid Indian taxation on U.S. business income (where DTAA applies).

How to Fill IRS Form 8802 – Step-by-Step (Simplified)

• Enter your business name and U.S. EIN (Employer Identification Number).
• Provide your business address in the U.S. — it can be your registered agent’s address.
• Mention the calendar year for which you want the residency certificate.
• State whether you filed your U.S. tax return (e.g., Form 1120 or 1065) for that year.
• Mention why you’re requesting the certificate — usually for income tax treaty benefits.
• Sign and submit it along with the required fee (currently $85 as of 2025).

When to File Form 8802?

• File it at least 45 days before you need the certificate.
• It takes 30–45 days to process.
• You can request Form 6166 for the current or previous calendar year.

Where to Send It?

• U.S. residents (even foreign-owned LLCs with EIN) mail it to:
• Department of the Treasury, IRS, P.O. Box 71052, Philadelphia, PA 19176-6052, USA

Important Notes for Indian Founders

• You don’t need to have physical presence in the U.S. to apply.
• As long as your U.S. LLC has an EIN and files tax returns (even zero or pass-through), you’re eligible.
• Always consult a cross-border tax advisor to align with DTAA between India and the U.S.

FAQs – Tailored for Indian Entrepreneurs with U.S. LLCs

1. What is Form 8802 used for?
It’s used to request a Tax Residency Certificate (Form 6166) from the IRS.

2. What is Form 6166?
It’s a certificate from the IRS confirming that your U.S. LLC is a resident for tax purposes.

3. Why do Indian founders need Form 8802?
To avoid double taxation and claim DTAA benefits when foreign clients or governments ask for proof.

4. Can I apply if my LLC has zero revenue?
Yes, as long as you file your tax return (e.g., Form 1120), you can apply.

5. Do I need a U.S. address to apply?
Yes, even if it’s just a registered agent’s address. A valid U.S. mailing address is needed.

6. Is there a fee to file Form 8802?
Yes, $85 (as of 2025). Payable to the IRS.

7. What if I didn’t file a tax return yet?
You won’t get the certificate unless you’ve filed for the calendar year in question.

8. Can Indian individuals also apply?
Yes, individuals can apply for Form 8802 if they’ve filed a U.S. tax return and meet residency tests.

9. Can Form 8802 help with VAT exemptions?
In some cases, yes. Countries may waive or reduce VAT if you show the U.S. residency certificate.

10. How long is Form 6166 valid?
It’s valid for the calendar year mentioned. A new one must be requested each year.

11. What is the deadline to apply for Form 8802?
There’s no strict deadline, but apply at least 45 days before you need it.

12. Does my LLC need to have a U.S. bank account to qualify?
No. Bank account is not a requirement to apply.

13. Will this certificate help me avoid GST in India?
No. Form 8802 relates to U.S. residency only. Indian GST depends on where services are consumed.

14. Can I submit Form 8802 online?
As of now, only paper-based submission is allowed unless you have IRS e-services access.

15. What if I miss the 45-day timeline?
The IRS will still process it, but delivery may be delayed. Plan early.

Suggested Read :

LLC Taxation for Non-US Residents
LLC Compliance Mistakes Indian Entrepreneurs Make in USA
LLC Benefits in the US That Indian Companies Often Overlook
W8BEN vs TRC Forms

Conclusion

Form 8802 is a must-know tool for Indian founders operating through U.S. LLCs. It ensures you don’t pay more tax than needed, builds credibility with foreign clients, and supports compliance under international treaties. Just make sure you file it on time, provide accurate details, and consult with experts if needed.
Want help filing your Form 8802 or managing U.S. compliance from India? Ebizfiling helps Indian businesses navigate U.S. tax and legal systems smoothly — including EIN, 1120 filing, and Form 8802 support. Connect with us today.