How to avoid preconceived notions and traps when filing an LLC in the United States?
For nearly 15 years, our team of specialists has been assisting U.S. LLC members, whether it is an operating, investment or real estate LLC.However, there are many traps in filing your LLC's tax return. In this article, we have compiled a list of misconceptions and traps that some U.S. LLC partners may fall into.
Mistake 1: Driven by the uncertainty of the process, you may think it's better to give up on adjusting your returns than to file them incorrectly.
There is no reason to fear the judgment of our specialists. On the contrary, they are available to help you get your U.S. tax returns for past years in order, even if you failed to file them before.Filing U.S. tax returns for your U.S. LLC is mandatory, even if your business has no profit or sales. Members who fail to comply with this requirement are subject to severe penalties from the IRS.
Mistake 2: "I don't have to report my LLC's tax returns to the US".
Filing your LLC's tax return is mandatory in the United States. It is essential to report the income generated by your U.S. LLC to the U.S. Internal Revenue Service (IRS), even if that income is not directly subject to U.S. tax.If you fail to report this income or make errors, you may be subject to IRS penalties of up to $25,000 per year per form. You can benefit from the expertise of our specialists to report your U.S. LLC income from $649 per year.
Mistake 3: "I can file my own tax returns".
It is true that no one is forcing you to hire a tax preparer or a CPA to do your tax returns. However, it is important to consider that using a professional is essential to avoid errors or omissions.Some service providers may downplay the importance of U.S. tax returns and the associated obligations, but they are fundamental to the sustainability of your business.
Mistake 4: "I don't have to report my income in in my country of residence when it’s an LLC non-ETBUS"
Trying to avoid your tax obligations in your country of residence is both illegal and risky.Indeed, failing to declare the profits made by a US LLC (non-ETBUS) in your country constitutes tax fraud, which can lead to a tax reassessment with an surcharge, late penalties and criminal sanctions.
Mistake 5: "My turnover is $0, I have nothing to declare".
It is wrong and dangerous to think that you are not obliged to declare your LLC and its income to the IRS, even if your sales are zero at the end of the calendar year.Failure to report can result in severe IRS penalties. In addition, some states require U.S.
LLC members to report accounts held abroad.Although the U.S. has not signed CRS (Common Reporting Standards) agreements for international exchanges, bilateral agreements can be used to detect any attempt to conceal income or assets.
"I have set up my US LLC with another provider; is it possible to outsource the tax returns to you anyway?".
Yes, our team of specialists is at your disposal to help you fulfill your US tax obligations.In addition, we can take over your company's registered agent mandate free of charge so that we can renew your company every year for a fee of $250.
What makes us different from other players in the market?Our expertise is recognized by our partners, such as JP-Morgan Chase and Bank of America, as well as by the trust of our clients, who have honored us with their business for over 15 years.
Our in-house team and our partners who we work with (lawyers/accountants) are here to assist you in various aspects of your business, including drafting contracts, tax consultations, tax returns with the help of a certified public accountant, US visa applications with an attorney, setting up a trust in the US, etc.
We offer a premium service for your US tax returns for your LLC non-ETBUS, which fully meets the requirements of the IRS.