Helping Businesses – US Owners of non-US Corporations

US Owners of non-US Corporations

American owners of corporations located outside the US must file US information returns regarding their ownership if they collectively own 10% or more of a non-US corporation.

If Americans own between 10% and 50%, you usually file Form 5471 in the year your business opens, the year it closes, and most years when your ownership percentage changes. Alternatively, you may be able to elect for your foreign corporation to be treated as either a partnership or, if there is only one shareholder, a sole proprietorship.

If Americans own more than 50%, you usually file Form 5471 every year. Again, you may be able to elect to be treated as a partnership or sole proprietorship.

Form 5471 converts financials statements from foreign currency and fiscal year to US dollar and calendar year, using US GAAP and IRS rules for allowable deductions. This means that the bottom line on your corporation may be very different for US tax purposes.

Additional taxes may be due if the primary purpose of the business operation is deemed to be for investment purposes. For that reason, it’s best to take advice prior to starting your corporation.

We assist with all compliance related to foreign entities owned by Americans.

Why Choose British American Tax?

We visit you instead of you having to visit us

We are available until 6 p.m. for UK clients

We are available for US clients during most US working hours [7 a.m. to 2 p.m. EST]

We provide newsletters, articles, and tax memos to offer ideas that are of use to you.

We are able to provide business contacts in other areas through our network

We tax plan BEFORE the tax year end, not afterwards

We provide a fixed fee or ceiling fee for most work

We invoice and accept payment in sterling or US dollars

We are proactive and work with clients to provide cost effective solutions

We work alongside your other professional advisors