Small Business Owners
Running your own business has multiple advantages - who doesn’t want to be their own boss? But it can obviously confer a number of challenges, especially if you are living abroad. We can handle your US tax issues stemming from running a foreign business.
For American expat entrepreneurs, there are tax implications of every decision -- from how you structure your business to how you pay yourself and your employees. Where your company is located, whether there is a Tax Treaty and/or Social Security Agreement between your host country and the USA, and where your employees are based will all have an impact on your business taxes. In addition to federal tax filing requirements, you must also consider the possibility of paying US payroll taxes and Social Security. Even if your business operates 100% outside the USA, you may still need to file informational reports to the IRS such as Form 5471, which is required for anyone who owns 10% or more of a foreign corporation.
Many of our clients have foreign corporations - and we intimately know the issues with owning one and how to handle them from a US tax perspective.