Have Tax Questions? Ask a Tax Expert for Answers ASAP
Generally foreign companies will be classified as a corporation by default under U.S. federal income tax principles. You can although make an entity classification election via Form 8832. (http://www.irs.gov/pub/irs-pdf/f8832.pdf) Note that if the company was a corporation by default and you check to disregarded you may have a potential "phantom" gain or loss.
If you do not check the company to disregarded and it stays a corporation then the forms which should be required to be filed are Form(s) 5471, 926, and 8938 (see below).
Any money the company pays you that is not salary would be considered a foreign sourced dividend. If the company makes it's business via a passive activity such as real estate or investments then such income would be considered Subpart F income. (not a friendly type of income)
If you check to disregarded then you would basically report the company's income and expenses on your personally 1040 Schedule C. (assuming you are the beneficial owner) If the company has paid any foreign taxes then you may wish to file Form 1116 'Foreign Tax Credit' to try and reduce the amount of double taxation the U.S. will impose on you. If you are residing abroad you may be able to exclude all or a portion of this income. See the attached regarding the "Foreign Earned Income Exclusion" - http://www.irs.gov/businesses/small/international/article/0,,id=97130,00.html
You would probably also have to file an FBAR with respect to this entity if it has any foreign bank accounts and you have signatory authority.
The foreign world of U.S. taxation is quite complex and I am touching on the major areas I foresee being issues given your facts. Please let me know if you have any further questions.
Sure I can assist with this but I won't be able to give you a good response until this weekend.
Could you ask this question as a new post? You can copy the URL above to give the background.
I'll be in touch.
I have not received it yet. I'm sorry I don't know exactly how to ask another question to an expert. (I haven't been on the asking side yet
Attachments are only available to registered users.
You might be working with another expert already, if you are then let me know. If not then let's just work through with this thread.
Once you are satisfied with my response you can remit the amount you feel the answer is worth via a bonus. Sound good?