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Foreign Owned Company
Foreign Person Tax Reporting
Foreign Person Tax Reporting
A foreign investor, individual or entity, generally may do business in the United States. First step is to create the entity at State level and then request Federal recognition, requesting an Employer Identification Number (EIN). This EIN will also allow for the opening bank account(s).
Foreign Person Tax Reporting
Foreign Person Tax Reporting
Foreign Person Tax Reporting
Foreign persons, natural or legal, have various reporting requirements in the United States and at State level. One of the main requirements is that transactions between the United States domestic entity and its foreign owner and/or affiliates are disclosed. Another important requirement is the determination of a transfer price for purchases and sales between foreign and domestic entities under common control.
Non-US Tax Resident
Foreign Person Tax Reporting
Non-US Tax Resident
A foreign, non-US person, becomes a tax resident of the United States, generally, upon meeting the substantial presence test. This substantial presence test is generally met when the foreign person is in the United States 183 days based on 3 year average computation. Once the foreign person meets this substantial presence test then tax events for this person are likely to have the same tax treatment as a US resident, even if the foreign person is not a legal resident or "green card" holder.
CORPORATIONS
C CORPORATIONS are separate legal entities completely separate from its owners or shareholders. Generally, C Corporations are managed through Articles of Incorporation and their lives are generally indefinite assuming a going concern.
S CORPORATIONS
S Corporations, like C Corporations, have shareholders but like Partnerships do not pay taxes only report taxable income through K-1 statem
PARTNERSHIPS
Partnerships are different from C Corporations in that their owners are Partners and not shareholders. Partners and shareholders have different legal and tax implications. When it comes to federal income taxes, Partnerships do not pay income taxes but report the various categories of taxable income to its Partners through K-1 statements.
LLC's or LIMITED LIABILITY COMPANIES
LLC's are also different from C Corporations and Partnerships in that LLC's have Members and not Partners or shareholders, each type of ownership with different legal and tax implications. An LLC with more than 1 Member becomes a Partnership by operation of law but may opt to be an S Crporation or a C Corporation.