Manage Finances

Business taxes

What to file and when, what you can deduct, and when it is worth paying an accountant.

Guides and comparisons

Guide · Compliance and filings

Form 5472 and the other US filings for a foreign-owned company

A single-member LLC owned by a non-US person files Form 5472 with a pro forma Form 1120 every year, by fax or mail, due April 15 for a calendar year. Putting money in or taking it out counts as a reportable transaction, so almost every such LLC has to file. Missing it costs $25,000.

· 7 min read

Guide · Cross-border incorporation

ITIN for non-US founders: when you need one, and when you don't

You don't need an ITIN to get an EIN, file Form 5472 or claim a treaty rate on a W-8BEN if you have a tax number from home. You do need one to file a US return as a nonresident, for example when your business is engaged in a US trade or business. The IRS says allow 9 to 11 weeks from abroad.

· 7 min read

Guide · Legal structure

When to elect S corp status: the break-even, with real numbers

Electing S corp status lets an LLC owner take part of the profit without self-employment tax. Whether that's worth it depends on your profit, a reasonable salary and the extra running costs. Here is the math at three profit levels.

· 7 min read

Guide · Company formation

How to get an EIN for your LLC: free, online, in about 15 minutes

An EIN is free from the IRS and takes about 15 minutes online. Here is what to have ready, the hours the online application is open, the mistakes that cause trouble later, and the fax, mail and phone routes for everyone else.

· 7 min read

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