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questions from foreign-owned single member LLC

PostPosted: 4-Nov-2019 8:30am
by juro
1. Would it be more tax efficient if Siguary llc was owned by a UK company ? I have a property company’s the UK called Siguary llc ltd so could transfer ownership to that.

2. Would it be more tax efficient if Siguary llc had more members ?

Re: questions from foreign-owned single member LLC

PostPosted: 7-Nov-2019 4:08pm
by deniz
If the client is relatively young, single owner that does short term flips of property, you can leave it as an LLC for the single level of taxation and capital gains tax rate.

All other scenarios are a planning exercise that requires more details of facts and circumstances.

Re: questions from foreign-owned single member LLC

PostPosted: 7-Nov-2019 4:50pm
by swgordon
Why would you want to have a foreign owner of a US business unnecessarily? You then open yourself up to all the foreign owner reporting. Penalties of which are huge if you fail to file the required forms.

Re: questions from foreign-owned single member LLC

PostPosted: 10-Nov-2019 12:11pm
by juro
swgordon wrote:Why would you want to have a foreign owner of a US business unnecessarily? You then open yourself up to all the foreign owner reporting. Penalties of which are huge if you fail to file the required forms.



https://imgur.com/a/UUfWqjW

Re: questions from foreign-owned single member LLC

PostPosted: 10-Nov-2019 4:52pm
by swgordon
Exactly. $25k penalty. It is crazy.

Re: questions from foreign-owned single member LLC

PostPosted: 28-Oct-2021 12:05pm
by nohelia23
i have a client who opened up a llc single member on 2021, his EIN state disregarded entity, does he needs to file 1040NR and just tax capital gains? he invested money to build homes and sale them. i don't want him to get a fine of $25k

Re: questions from foreign-owned single member LLC

PostPosted: 28-Oct-2021 12:21pm
by sjrcpa
May be ordinary income instead of capital gain.
Maybe start a new thread and provide more info.

Re: questions from foreign-owned single member LLC

PostPosted: 28-Oct-2021 12:33pm
by Nilodop
The LLC disregarded entity owned by a foregn owner still has to file a 5472. https://www.irs.gov/irb/2017-03_IRB#TD-9796

Re: questions from foreign-owned single member LLC

PostPosted: 28-Oct-2021 6:26pm
by ManVsTax
US SMLLC owned by a nonresident alien would file a 5472 for the LLC (informational) and a 1040-NR to report the taxable income.

Assuming DRE of course. Might make a lot of sense to elect "C" for the LLC depending on the facts.