Author: Viktor Bartak
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Guide to Form 1042-S: Reporting Foreign Person’s Income
Form 1042-S shows different types of income and payments made to foreign persons. The completion of this form ensures IRS compliance and accurate reporting of foreign-earned income. It provides information for both recipients and the IRS, as it helps establish accurate tax liability and determine potential tax treaty benefits, if applicable. The form includes details such…
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Foreign-Owned LLCs: A Tax Guide for Foreign Founders
Limited liability companies (LLCs) are a relatively new type of business entity in the United States, with Wyoming enacting the first formal LLC statutes in 1977. However, they have grown in popularity in recent years. An LLC is a business entity that combines the features of both a corporation and a partnership. Its members have…
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Claiming Business Tax Credits with Form 3800
Form 3800, the General Business Credit, is your go-to tool for unlocking a treasure trove of small business tax credits. This master form keeps the tax credit game strong, helping businesses make the most of tax savings. With over 30 credits up for grabs, including incentives for research, hiring, and more, it’s a goldmine for…
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The Foreign Founders Tax Guide: Essential Tax Knowledge
Are you considering starting a US business but are still determining if you are eligible? Foreign persons may establish or own a business in the US because residency and citizenship are not typically required for business ownership. When starting a business in the US, you must consider the types of business entities you can legally…
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Controlled Foreign Partnerships: An Essential Tax Guide
US residents and citizens pay taxes on their worldwide income, and special rules apply when there is substantial US ownership in foreign business entities such as partnerships or corporations. This article will discuss the specific laws and policies governing how controlled foreign partnerships (CFPs) are taxed. US persons with ownership interests in a CFP may…
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LLC Tax for US Nonresidents: A Comprehensive Guide
Nonresident aliens are allowed to do business in the United States, and they can establish any of these three common types of entities: a limited liability company (LLC), a partnership, and a corporation. This article focuses on limited liability companies and the taxes that apply to nonresident LLC owners. An LLC can be formed in…
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Taxation of Foreign Persons in the US: A Comprehensive Guide
As one of the world’s largest consumer markets, the United States remains a popular destination for foreign investment, thanks to a strong economy and free trade agreements with several foreign countries. Business structure, residency status, income sources and types, and tax treaties are some of the variables affecting foreign founders’ tax obligations. One of the…
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Understanding Balance Sheets: A Beginner’s Guide
A balance sheet is a financial statement that shows a company’s resources (assets) and how they were financed at a given time period, either through debt (liabilities) or equity contributions from owners/shareholders. It is also known as the Statement of Financial Position. It can be implied with this structure: Asset = Liabilities + Equity Why is…
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What You Need to Know About Corporate Income Tax
A corporation is a legal entity distinct from its owners. Shareholders purchase shares of the corporation. Due to the numerous advantages of corporations, many individuals opt for this structure. It is considered a separate legal entity from its owners because it can make independent decisions, enter into contracts, acquire assets, and incur liabilities. It has…
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Estimated Tax Payments: What Business Owners Need to Know
Filing taxes can be stressful, particularly for businesses striving to ensure they have ample cash to cover tax obligations by the due date. To alleviate this burden, consider making quarterly estimated tax payments to the IRS throughout the tax year. By doing this, you can better manage your cash flow and prevent underpayment penalties when…