Non US people with US companies - GoFuckYourself.com

m0rph3us · 02-13-2003, 05:13 PM

I'm just wondering how non US citizen/residents that had to incorporate in the US for VISA requirements deal with taxes.

Epoch/IBILL will sends your US corp a 1099 every year with your gross income regardless of where they wire the cash. The IRS will want to know why your company shows $0 gross and $0 net in the bank when the 1099 says $100k for instance. How do you handle this? Do you just have your home company bill the US 100% of the net for management fees?

Scoobs · 02-13-2003, 06:08 PM

This is a good question...

To be honest, it got to 1 week before the deadline and I decided that if I was going to keep my income coming in from ibill I would have to get a company in the US... I did it without thinking about tax implications... Now I have to get some good advice to answer the exact questions you are asking... so anyone have that advice for me?

Seriously though, I shudder to think what my accounts are going to tell me about this when I meet with them!

Fuck VISA!

Jayson · 02-13-2003, 06:27 PM

This will depend on the country you live in, but you are correct the IRS is probably going to be pretty interested in any company showing no profit.

If you are in a country with a tax treaty with the US, then you are also likely to have a transfer pricing agreement. The transfer pricing agreement basically means that both countries tax departments have agreed that when conducting transactions between related entities, they have to be at fair market value so that the correct portion of taxable income and expense is attributated to the right country.

So you basically cant go an invoice 100% management fees, if that is not commercially reasonable.

**Disclaimer: Ofcourse, this is my opinion and please seek independant legal and accounting advice.

m0rph3us · 02-13-2003, 06:30 PM

Quote:

Originally posted by Jayson
This will depend on the country you live in, but you are correct the IRS is probably going to be pretty interested in any company showing no profit.

If you are in a country with a tax treaty with the US, then you are also likely to have a transfer pricing agreement. The transfer pricing agreement basically means that both countries tax departments have agreed that when conducting transactions between related entities, they have to be at fair market value so that the correct portion of taxable income and expense is attributated to the right country.

So you basically cant go an invoice 100% management fees, if that is not commercially reasonable.

**Disclaimer: Ofcourse, this is my opinion and please seek independant legal and accounting advice.

yeah good point on that.

I live in Canada

Lily · 02-13-2003, 06:45 PM

I have no idea what the answer to your question is, but I wanted to note that the vast majority of small businesses do not show an annual profit.

Most small businesses fail having never profited. Just a little info!

m0rph3us · 02-13-2003, 06:50 PM

Quote:

Originally posted by Lily
I have no idea what the answer to your question is, but I wanted to note that the vast majority of small businesses do not show an annual profit.

Most small businesses fail having never profited. Just a little info!

I know that hun ;) .. however the issue is the business would have pretty large gross yearly figures. The 1099 forms from the billers would show that.

m0rph3us · 02-13-2003, 09:02 PM

bump

c'mon someone must know.

02-13-2003, 05:13 PM	#1
m0rph3us Confirmed User Join Date: Mar 2001 Location: Principality of Sealand Posts: 2,033	Non US people with US companies I'm just wondering how non US citizen/residents that had to incorporate in the US for VISA requirements deal with taxes. Epoch/IBILL will sends your US corp a 1099 every year with your gross income regardless of where they wire the cash. The IRS will want to know why your company shows $0 gross and $0 net in the bank when the 1099 says $100k for instance. How do you handle this? Do you just have your home company bill the US 100% of the net for management fees? __________________ <font size="2" face="Tahoma"><a href="http://www.18blowjobs.com/webmasters/?640" target="_blank">Get paid $25 per signup</a> listing over <a href="http://galleries.18blowjobs.com/hosted.html" target="_blank">100 free hosted video galleries</a> - <a href="http://www.18blowjobs.com/webmasters/?640" target="_blank">Check it</a> » </font>

02-13-2003, 06:27 PM	#3
Jayson Confirmed User Join Date: Oct 2001 Location: CZ Posts: 554	This will depend on the country you live in, but you are correct the IRS is probably going to be pretty interested in any company showing no profit. If you are in a country with a tax treaty with the US, then you are also likely to have a transfer pricing agreement. The transfer pricing agreement basically means that both countries tax departments have agreed that when conducting transactions between related entities, they have to be at fair market value so that the correct portion of taxable income and expense is attributated to the right country. So you basically cant go an invoice 100% management fees, if that is not commercially reasonable. **Disclaimer: Ofcourse, this is my opinion and please seek independant legal and accounting advice. __________________ Sapphic Cash - We Do It Right

02-13-2003, 09:02 PM	#7
m0rph3us Confirmed User Join Date: Mar 2001 Location: Principality of Sealand Posts: 2,033	bump c'mon someone must know. __________________ <font size="2" face="Tahoma"><a href="http://www.18blowjobs.com/webmasters/?640" target="_blank">Get paid $25 per signup</a> listing over <a href="http://galleries.18blowjobs.com/hosted.html" target="_blank">100 free hosted video galleries</a> - <a href="http://www.18blowjobs.com/webmasters/?640" target="_blank">Check it</a> » </font>

02-13-2003, 06:08 PM	#2
Scoobs Confirmed User Join Date: Jul 2001 Location: Out back Posts: 492	This is a good question... To be honest, it got to 1 week before the deadline and I decided that if I was going to keep my income coming in from ibill I would have to get a company in the US... I did it without thinking about tax implications... Now I have to get some good advice to answer the exact questions you are asking... so anyone have that advice for me? Seriously though, I shudder to think what my accounts are going to tell me about this when I meet with them! Fuck VISA!

02-13-2003, 06:45 PM	#5
Lily Confirmed User Join Date: Jan 2003 Location: BFE WA State Posts: 147	I have no idea what the answer to your question is, but I wanted to note that the vast majority of small businesses do not show an annual profit. Most small businesses fail having never profited. Just a little info!