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Important Taxation Compliance for US Residents/US Citizens
Important Taxation Compliance for US Residents/US Citizens
Updated over a year ago

If you have or are looking to start a Single Member/Multi-Member LLC -

  • By default, the income and expenses of your LLC will flow onto your personal income tax return (Form 1040, Schedule C).

  • If you choose your LLC to be taxed a C-Corporation you have to file Form 8832, Form 1120 and Form 1040.

  • If you choose your LLC to be taxed a S-Corporation you have to file Form 2553, Form 1120S and Form 1040.

  • You may also have to file Form FBAR (Report of Foreign Bank and Financial Accounts), if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. Penalty for failure to file is $100,000 or 50% of the balance of the account at the time of the violation, whichever is higher.

If you have or are looking to start a C-Corporation -

  • Form 1120 needs to be filed with the IRS for your C-Corporation. This form must be filed even if your taxable income in the US is 0 or if there has been no activity throughout the year.

  • The income from your C-Corporation will be reported in your US federal income tax return on Form 1040.

  • You may also have to file Form FBAR (Report of Foreign Bank and Financial Accounts), if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. Penalty for failure to file is $100,000 or 50% of the balance of the account at the time of the violation, whichever is higher.

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