At: The US company
The filing an empty LLC still owes
You formed a US LLC and did not know it had a federal filing, even with no income.
What we do
A review of your ownership, accounts and US activity to list the filings that apply.
Cross-Border Tax
Cross-border tax covers the US filings that follow money, ownership or people across the US border. It applies to foreign owners of US companies, foreign companies doing business in the US, and individuals with a foot in two countries. We work out which US forms apply, prepare them, and keep a record of why each position was taken.
Where cross-border tax comes into play across the year
The points where this service comes into play are numbered.
- Stage 1The US companyYou live outside the US and own a US LLC on your own.1
- Stage 2Money between companiesYour US company pays or receives money from its foreign owner.2
- Stage 3US incomeA US payer withholds tax and asks you for a W-8 form.3
- Stage 4Accounts abroadYou are a US citizen or green-card holder with bank accounts or investments abroad.4
- Stage 5Filing seasonForm 5472, Form 1040-NR, Form 1120-F and the FBAR, each with its own due date.
- Stage 6A moveYou moved to or from the US and are unsure whether you are a US resident for tax purposes.
Numbered points are explained below.
The four points, explained
At: Money between companies
Paperwork for owner payments
Your US company pays or receives money from its foreign owner and the paperwork has not kept up.
What we do
Form 5472, with the pro forma Form 1120 a foreign-owned US disregarded entity files it with.
At: US income
The treaty rate on US income
A US payer has withheld tax from you and you do not know if a treaty rate applies.
What we do
Guidance on Form W-8BEN and other W-8 forms you give to US payers. Form 8833 disclosures for treaty-based return positions.
At: Accounts abroad
FBAR, Form 8938, or both
You are not sure whether your foreign accounts need an FBAR, a Form 8938, or both.
What we do
FBAR (FinCEN Form 114) and Form 8938 where they apply.
What the engagement includes
Request a proposal- Finding what applies
A look at your ownership, accounts and US activity, and a list of the filings that apply to you.
- Foreign-owned US companies
Federal filings for US companies with foreign owners, such as Form 5472 with its pro forma Form 1120.
- Foreign companies with US income
Returns for foreign corporations with US income, such as Form 1120-F.
- Nonresident individuals
US returns for people who live outside the US, such as Form 1040-NR for rent from US property.
- Accounts and assets abroad
Reporting for US persons with foreign accounts and investments, such as the FBAR and Form 8938.
- Treaties and withholding
Treaty positions and the forms you give US payers, such as Form 8833 and Form W-8BEN.
- Something not listed?
Ask us. If it is US tax or accounting work, we will tell you plainly whether we can take it on.
How it runs
Facts first
You tell us who owns what, where you live, and what moved between the US and abroad during the year. We ask follow-up questions wherever the picture has gaps.
Filing map
We list each US form that applies, why it applies, and its due date. You see the list before we start preparing anything.
Preparation
We prepare the returns and disclosures from your records. Where a position rests on a treaty or a judgment call, we write it down.
Review and filing
You review and sign. We file what can be filed electronically and tell you exactly what, if anything, you must file yourself.
Next year
We note what to track through the next year so the following filing starts from clean records.
I live outside the US and own a US LLC by myself. Does it file anything if it made no money?
Often, yes. A US disregarded entity owned by a foreign person may have to file Form 5472 with a pro forma Form 1120. The requirement turns on transactions with you or other related parties, not on profit. We check your transactions against the IRS instructions.
What is the difference between an FBAR and Form 8938?
An FBAR is filed with FinCEN, not with your tax return. It applies when your foreign accounts together were over $10,000 at any time in the year. Form 8938 is attached to your tax return and has higher thresholds. One does not replace the other; you may need both.
Can a tax treaty lower my US tax?
Sometimes. It depends on the treaty, the type of income and your facts. When you take a position on a return that relies on a treaty, you may need to disclose it on Form 8833.
When is the FBAR due?
April 15 after the calendar year it covers, with an automatic extension to October 15.
How do I know if I am a US resident for tax purposes?
If you do not hold a green card, the substantial presence test usually decides it. It counts your days in the US this year and, at a reduced weight, the two years before. We run the count with you and look at any exceptions that may apply.