Business Owners
Abroad
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Specialist US tax support for company owners, freelancers, and contractors operating businesses outside the United States.
Running a business abroad as a US citizen introduces a layer of tax complexity that goes beyond standard expat filings. Foreign business entities, self-employment income, and cross-border transactions all trigger additional IRS reporting requirements.
TaxYork provides specialist US tax services for business owners overseas — ensuring your personal and business tax obligations are met accurately, with proper entity classification, information return filing, and strategic use of credits and exclusions.
Entity Reporting
Accurate filing of Forms 5471, 8865, and 8858 for foreign corporations, partnerships, and disregarded entities.
Self-Employment Tax
Managing US self-employment tax and applying Totalization Agreement relief where applicable.
Credit Optimisation
Strategic application of foreign tax credits and exclusions to minimise double taxation on business income.
US business owners abroad face some of the most complex IRS reporting requirements of any taxpayer group. From entity classification and information returns to self-employment tax and transfer pricing, the compliance burden is significant — but manageable with specialist support.
Key Areas
Business Owner
Tax Challenges.
Entity Classification
Determining how your foreign business entity is classified for US tax purposes — as a corporation, partnership, or disregarded entity — which affects your reporting obligations.
Information Return Filing
Meeting complex IRS information return requirements (Forms 5471, 8865, 8858) that carry significant penalties for non-filing or late filing.
Self-Employment Tax
Managing US self-employment tax obligations on worldwide business income and applying Totalization Agreement relief where available.
Foreign Tax Credits
Optimising the use of foreign tax credits to offset US tax liability on business income already taxed in your country of operation.
Transfer Pricing & Intercompany
Ensuring intercompany transactions and cross-border business structures comply with US transfer pricing rules and reporting requirements.
Foreign Business Structures
Navigating US Tax
for Foreign Entities
If you own or control a foreign business entity, the IRS requires detailed information reporting — even if the entity pays no US tax. The classification of your entity (corporation, partnership, or disregarded entity) determines which forms must be filed and how income is reported on your personal return.
Penalties for failing to file required information returns (such as Forms 5471 or 8865) are severe — often $10,000 or more per form, per year. Many business owners are unaware of these requirements until penalties are assessed.
TaxYork ensures your foreign business structures are correctly classified, all required information returns are filed accurately, and your personal US tax return properly reflects your business activities abroad.
Common Questions
Frequently Asked
Questions
Yes. US citizens and green card holders must report their worldwide income to the IRS, including income earned through foreign businesses, freelance work, and self-employment. This applies regardless of whether the business is registered abroad or taxes are paid locally.
A CFC is a foreign corporation where US shareholders own more than 50% of the voting power or value. CFC rules require US owners to report and potentially pay tax on certain categories of the corporation's income, even if no distributions are made.
Yes. Depending on your business structure, you may need to file Form 5471 (foreign corporations), Form 8865 (foreign partnerships), Form 8858 (foreign disregarded entities), or FBAR and FATCA disclosures for business bank accounts.
The FEIE can apply to earned income from personal services performed abroad. However, it does not apply to passive income, investment returns, or certain categories of business income. Proper classification of your income is essential.
US citizens are generally subject to self-employment tax (Social Security and Medicare) on worldwide self-employment income. Some tax treaties provide relief through Totalization Agreements, which prevent double social security contributions.
We specialise in the US tax reporting requirements for business owners abroad — from entity classification and information return filing to transfer pricing considerations and foreign tax credit optimisation. We ensure your business activities are properly reported to the IRS.
Get in Touch
Ready to get
your US taxes
sorted?
Whether you need help with IRS Streamlined filings, annual US tax returns, or cross-border tax planning — our team is here for you.
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