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taxmanrog
taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 605
Experience:  Licensed CPA, MA, MST with 31 years' experience. Teach Accounting and Tax courses at Masters level.
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Can you please answers questions in word file

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can you please answers questions in word file

Welcome to Just Answer! Thank you for giving me the opportunity to assist you! I will do my best to help!

I will answer your questions as they are in the Word doc.

CORPORATIONS:

1) You need to file a Federal Form SS-4 to get your Federal Employer ID number. You then will have to file a Federal Form 1120 and a Delaware Form 1100 every year. Also, depending on if the foreign shareholder receives any "reportable payments" such as wages, rent, interest, etc., or if the foreign shareholder loans or borrows money from the corporation, a Form 5472 will also be required. A corporation is considered it's own separate entity, so it has to file its own tax return and pay its own income tax.

2) No, no change. As long as the corporation is incorporated in DE, a US and DE tax return are required every year.

3) No, as long as you are incorporated in one of the 50 United States, you are a US corporation and are required to file a US tax return regardless of where you file.

4) See #1.

5) If the shareholder and/or any other employees perform services that are totally outside of the United States, they will not have to pay any US income tax or even file any US tax returns. They would report the income and pay tax on it in whatever European country they live in. If they provide services IN THE US, such as physically working here, then some of the salary would be allocated to the US (based on work days) and a US tax return would be required.

6) See #5, above. The employee would pay tax only in Europe if he does not work in the US.

LLC:

1) If you form a DE LLC, and no work is performed in DE, there is no filing requirement. An LLC is a disregarded entity for tax purposes. That means it does not exist for tax purposes.

2) No, buying products or services will not change anything.

3) No, no change, no filing requirements. There would only be a filing requirement if there were income that was actually earned by someone performing services within the United States.

4) No, since this is a disregarded entity, there is no filing requirement if the shareholder takes a salary.

5) The only time the shareholder would pay tax in the US is if he actually performed services in the US. IF the services are prepared in Europe, the income would be reported in Europe and the taxes paid there.

6) The employee would pay tax only in Europe if he does not work in the US.

I hope this answers your questions! If you have any more, please let me know.

Thanks! Have a great weekend!

Roger

Customer: replied 3 months ago.
for the llc do we need to file form 1040nr if all services provided are outside of US?

No, as I stated, there is no filing requirement, unless you have income that is earned inside the United States.

taxmanrog and 2 other Tax Specialists are ready to help you
Customer: replied 3 months ago.
Can you assist with the registration?

An attorney is the one who will file your member agreement. As a CPA, I am allowed to file incorporation papers, but an attorney has to write up an LLC document.

Good luck with the process! I will be happy to answer any other questions that you may have.

Thanks!

Roger