Taxes
174 stories
Taxes2 min read
Can a US State Tax My LLC If I Have Never Been There?
Yes. Most states now use a sales threshold, not a physical one. California treats a retailer as doing business there once sales for delivery into the state exceed $500,000 in a year.
Taxes2 min read
Who Actually Has to File a Form 1040-NR?
The IRS names three situations, and the first covers most founders: a nonresident alien engaged in a trade or business in the United States. Owning a US company is not by itself one of them.
Taxes3 min read
Does a US LLC Owe US Tax If Its Owner Lives Abroad?
Not automatically. The test is whether the company is engaged in a trade or business in the United States, and that turns on where the work is actually done, not on where the owner happens to live.
Taxes2 min read
What Is Actually Due on October 15 If You Filed an Extension?
An extension moved your filing date to October 15. It never moved your payment date. Anything owed was due in April and has been accruing since.
Taxes3 min read
The $60,000 Question: US Estate Tax for Wealthy Non-Residents
A non-resident's US estate must file above $60,000 of US-situated assets. Stock in a US corporation counts toward it. A US bank deposit usually does not.
Taxes3 min read
What Are FATCA and CRS, and Will the US Report My Account Back Home?
Not through CRS. The US never signed it, while all 126 signatories including Mexico, Colombia and Spain did. It exchanges under FATCA instead, on its own terms.
Taxes4 min read
How Do You Know If Your Accountant Actually Filed Your Taxes?
You don't have to take anyone's word for it. The IRS keeps its own record, and Form 4506-T pulls the transcripts that show exactly what was received.
Taxes4 min read
How Do You Appeal an IRS Penalty Before You Pay It?
Yes, you can appeal. The IRS gives you 30 days from the notice date to protest with the Independent Office of Appeals before it becomes fixed debt.
Taxes4 min read
EIN, ITIN, or SSN: Which One Do I Need for My US Business?
Your company needs an EIN. You personally need an ITIN only if you must file a US return. An SSN requires work authorization most non-residents do not have.
Taxes4 min read
Do I Have to File an FBAR for My US Company's Foreign Accounts?
If your US company can control foreign accounts holding over $10,000 combined at any point in the year, it files an FBAR. The deadline is October 15.
Taxes4 min read
Does a Foreign Owner of a US LLC Actually Pay US Taxes?
Not automatically. US tax only applies to income effectively connected to a US business. Here is what actually determines whether a foreign owner owes anything.
Taxes4 min read
Do Non-Resident Owners of a US LLC Have to Make Quarterly Estimated Tax Payments?
Yes, if your LLC has effectively connected income and you expect to owe $1,000 or more. Non-resident filers pay in 3 installments, not 4, starting June 15.
Taxes4 min read
My US LLC Has More Than One Owner. What Do We File by September 15?
A US LLC with two or more owners files Form 1065 by Sept 15 if extended, plus a Schedule K-1 per owner. Late filing runs about $245 per owner, per month.
Taxes4 min read
The Full Tax and Compliance Calendar for a US LLC Owned From Abroad
Three anchor dates: March 15 for a multi-member LLC's Form 1065, April 15 for a single-member LLC's Form 5472, extended to September 15 and October 15 with Form 7004.
Taxes4 min read
How Do I Calculate the Taxes on My US LLC as a Non-Resident?
Calculating your US LLC tax as a non-resident starts with one question: is the income effectively connected to a US trade or business, or is it foreign-source?
Taxes3 min read
What Is a Franchise Tax, by State?
A franchise tax is a flat annual fee a state charges to keep your LLC active, not a tax on income. Delaware is $300, California $800, and many states charge nothing.
Taxes3 min read
How a Non-Resident Gets a US EIN (No SSN)
A non-resident gets a US EIN by filing IRS Form SS-4 by fax or mail, writing 'Foreign' where an SSN or ITIN is asked. It is free and issued to the company.
Taxes5 min read
US Tax Treaties: Does Yours Change Things
A US income tax treaty can lower or remove US withholding on income tied to your US business. Whether you benefit depends on your country and income type.
Taxes5 min read
No US Tax Due? You Still Have to File
Yes. With zero US tax due, a foreign-owned US LLC must still file Form 5472, a pro forma 1120, and its state report. Filing nothing risks a $25,000 penalty.
Taxes5 min read
What Is Form 5472 and the $25,000 Risk?
Form 5472 reports transactions between your US LLC and you, its foreign owner. Miss it and the IRS penalty starts at $25,000, even if the LLC owed no tax.
Taxes6 min read
What a Foreign-Owned US Company Owes the IRS
A foreign-owned US LLC often owes little or no US income tax, yet still must file Form 5472, a pro forma 1120, and annual state reports. Filing and paying are separate duties.
Taxes13 min read
Understand Tax Implications Before Dissolving Your LLC
Unravel the complexities of LLC dissolution and its tax implications. Gain insights to make informed decisions and ensure compliance in this professional guide.
Taxes6 min read
Are Income Tax Records Public? Essential Insights to Know
Uncover essential insights on whether income tax records are public. Learn who can access them and what it means for your privacy. Stay informed today!
Taxes8 min read
Navigate U.S. Tax Compliance for Foreign Investors with Ease
Navigate U.S. tax compliance with confidence as a foreign investor. Gain insights and strategies to simplify the process and make informed decisions today.