Foreign individuals and foreign companies can own businesses in the United States, but foreign ownership can significantly change the business’s U.S. tax compliance obligations. The first question is not simply: “Is the company foreign-owned?” The more useful question is: “How is the U.S. business classified for federal tax purposes, and who owns it?” A U.S.Continue reading “Foreign-Owned U.S. Businesses”
Author Archives: ambrosety
U.S. Owners of Foreign Businesses
Owning or operating a business outside the United States can create U.S. tax and information-reporting obligations even when the business itself operates entirely overseas. A common misconception is that a foreign business does not need to be reported in the United States until money is transferred back to the United States. That is not necessarilyContinue reading “U.S. Owners of Foreign Businesses”
LLC and Federal Tax Classification
One of the most common misunderstandings about LLCs is that “LLC” describes how a business is taxed. It does not. An LLC is a legal entity formed under state law. For federal tax purposes, the same LLC may be treated in several different ways depending on its ownership and elections. The important concept is simple:Continue reading “LLC and Federal Tax Classification”
