Foreign Company Registration & Business Organization: Business Tax for Foreign Owned CompaniesBy James Blake on
Business organization for foreign owned companies and foreign owned corporations in Texas requires several important business formation and business tax considerations. In addition to Texas law that requires registration for foreign corporations in Texas, an international business attorney in Texas can advise you in business tax law and business organization issues that are important to your foreign owned company.
Foreign Owned Company Organization & Business Tax
Generally, foreign owned companies can use the same business organization types available to U.S. citizens, except that a non-U.S. citizen cannot form an S-corp, nor can you form an S-corp with another company as owner (regardless of whether it’s a U.S. or foreign company). Business organization for foreign owned companies and foreign owned corporations in Texas is very similar to non foreign owned companies, commonly achieved by forming an LLC or forming a corporation with the help of an international business attorney in Texas. However, to avoid business tax complications, a foreign company that chooses to form an LLC as a business organization will usually elect to be treated like a corporation by the IRS for business tax purposes.
Foreign Owned Company Registration with the IRS
Once you’ve established a business organization for your foreign owned company, you should register for an EIN with the IRS and make business tax elections. While there’s an easy online method for EIN registration, a foreign owned LLC or foreign owned corporation cannot use this method. Instead, foreign owned companies must register using Form SS-4. After obtaining an EIN, if your business organization is a foreign owned LLC, you should probably file IRS Form 8832 and elect to be treated as a corporation for business tax purposes in order to avoid complex business tax reporting processes for both the foreign owned company and the parent company.
Our business law firm in Texas regularly consults and advises foreign company registration, business organization, and business tax matters. Contact us today for a free consultation!
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