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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.

Frequently Asked Questions

1. I am up to date with my tax returns, but I did not complete form 5471 for my foreign corporation, what do I do?

2. I have own my own French company (SARL). Do I need to file form 5471?

3. I own a foreign corporation with my 4 siblings- all US citizens - do we need separate forms 5471?

4. What information do I have to provide so that you can prepare Form 5471 for me?

5. I have earnings from a business that I am an owner but not directly involved in the day to day business - does this need to be reported?

6. I own more than 50% of the shares of a foreign company. That company in turn owns less than 50% of a second foreign company. I have signature on the bank account of this second company. Do I have to report the second company account on FBAR?

Further Reading