US tax for an owner abroad · A term for founders abroad
What is a US person?
For US tax and reporting, a US citizen or resident, or a company, partnership, estate or trust formed in the US; a US LLC is one for the FBAR.
Checked against the IRS's instructions and the states' own rules. Reviewed by Saais Patel, compliance reviewer.
Term 98 of 105 in the glossary, filed under U.FinCEN: Report of Foreign Bank and Financial Accounts
US person, for a founder abroad.
US citizens, US residents and entities formed in the US are US persons. So a Wyoming LLC owned by a founder abroad is itself a US person, even though its owner isn't, and that decides several forms.
- FBAR: the LLC files one if it holds over $10,000 in accounts outside the US, though you personally don't.
- W-9 or W-8: a multi-member LLC or corporation gives a W-9. A single-member LLC is looked through to its owner, who gives a W-8BEN.
- Withholding: payments to a US person aren't subject to the 30% withholding on foreign persons.
Sources: FinCEN: Report of Foreign Bank and Financial Accounts; IRS: instructions for Form W-8BEN.
Read next · guide · 5 minForm 5472 and the pro forma 1120, explained for a foreign-owned LLCWhat founders ask next.
- Is my foreign-owned LLC a US person?
- For most purposes, yes, because it was formed in the US. For income tax, a single-member LLC is disregarded, so the IRS looks to you, the owner, who isn't one.
- Am I a US person if I own a US company?
- No. Your own status depends on citizenship, a green card or days spent in the US.
03 · See also
- US tax for an owner abroadNon-resident alienFor US tax, someone who isn't a US citizen, doesn't hold a green card and doesn't pass the substantial presence test; most founders abroad are one.Read the term
- Keeping the company in good standingFBARThe yearly report to FinCEN of accounts outside the US, filed by a US company when they held over $10,000 between them at any time in the year.Read the term
- US tax for an owner abroadForm W-9The form a US person or US company gives a payer with its tax number; what a multi-member LLC or corporation gives a US client.Read the term
- US tax for an owner abroadDisregarded entityA single-member LLC the IRS ignores for income tax, treating its income as the owner's; it still files Form 5472 if the owner is foreign.Read the term
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