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Old 02-23-2018, 06:48 PM
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Director of a company based in Seychelles

I am currently living in the states and I pay tax here and I'm resident here however I am planning on becoming a director of a company and running the company for an overseas family members.
The company will not operate in the USA at all and I will not own the company.
The family members overseas will be the shareholders and owners of the company.

I am trying to find out if me being the director and running the company would make the company tax resident in the USA and corporation tax on profits be required to be paid in the USA? Or would me being the director only make me responsible for pay taken as a salary?

I can't seem to find a definite answer anywhere and I'd appreciate it if someone here could point me in the right direction to find out. A lot of accountants I've seen aren't unable to say for sure.

Thanks



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Old 02-24-2018, 08:41 AM
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I am trying to find out if me being the director and running the company would make the company tax resident in the USA and corporation tax on profits be required to be paid in the USA? =========>As a US resident ,even only for tax purposes, you need to report both US source and world wide income to the IRS and your home state in US.

Or would me being the director only make me responsible for pay taken as a salary?======>salary that you receive from the biz overseas needs to be reported as your world wide income;however, if you meet certain requirements, you may qualify for the foreign earned income and foreign housing exclusions and the foreign housing deduction; To claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, you must have foreign earned income, your tax home must be in a foreign country, and you must be A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year; A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year, or A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.please go and follow the instructions ;
https://www.irs.gov/individuals/inte...n-or-deduction

Note; since you are a U.S. citizen or a resident alien of the US and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to an amount of your foreign earnings that is adjusted annually for inflation $100,800 for 2015, . In addition, you can exclude or deduct certain foreign housing amounts. The 2017 Foreign Earned Income Exclusion has increased to $102,100, up from $101,300 for tax year 2016. This means that a husband and wife can make up to $204,200 of earned income using the 2017 Foreign Earned Income Exclusion and payzero Federal income tax.
Once more as I said,To qualify for the 2017 FEIE, you must be out of the U.S. for 330 out of 365 days, or living abroad as a legal resident of a foreign country. If taking the exclusion as a resident of a foreign country, you might spend 3 to 5 months a year in the U.S., but never 6 months.and of course to claim FEIE or foreign housing tax credit you need to file your US return.

You may also be entitled to exclude from income the value of meals and lodging provided to you by your employer.


I can't seem to find a definite answer anywhere and I'd appreciate it if someone here could point me in the right direction to find out. A lot of accountants I've seen aren't unable to say for sure.============>as mentioned above.



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Old 02-25-2018, 01:15 PM
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Quote:
Originally Posted by Wnhough View Post
I am trying to find out if me being the director and running the company would make the company tax resident in the USA and corporation tax on profits be required to be paid in the USA? =========>As a US resident ,even only for tax purposes, you need to report both US source and world wide income to the IRS and your home state in US.

Or would me being the director only make me responsible for pay taken as a salary?======>salary that you receive from the biz overseas needs to be reported as your world wide income;however, if you meet certain requirements, you may qualify for the foreign earned income and foreign housing exclusions and the foreign housing deduction; To claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, you must have foreign earned income, your tax home must be in a foreign country, and you must be A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year; A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year, or A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.please go and follow the instructions ;
https://www.irs.gov/individuals/inte...n-or-deduction

Note; since you are a U.S. citizen or a resident alien of the US and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to an amount of your foreign earnings that is adjusted annually for inflation $100,800 for 2015, . In addition, you can exclude or deduct certain foreign housing amounts. The 2017 Foreign Earned Income Exclusion has increased to $102,100, up from $101,300 for tax year 2016. This means that a husband and wife can make up to $204,200 of earned income using the 2017 Foreign Earned Income Exclusion and payzero Federal income tax.
Once more as I said,To qualify for the 2017 FEIE, you must be out of the U.S. for 330 out of 365 days, or living abroad as a legal resident of a foreign country. If taking the exclusion as a resident of a foreign country, you might spend 3 to 5 months a year in the U.S., but never 6 months.and of course to claim FEIE or foreign housing tax credit you need to file your US return.

You may also be entitled to exclude from income the value of meals and lodging provided to you by your employer.


I can't seem to find a definite answer anywhere and I'd appreciate it if someone here could point me in the right direction to find out. A lot of accountants I've seen aren't unable to say for sure.============>as mentioned above.

Hi thanks for your reply.

I understand if I take a salary I will pay tax on that salary my main confusion is wether the IRS would consider the corporation tax resident in the USA and charge corporation tax on the profits of the company?

Baring in mind I am not a shareholder or an owner? Just the director I will manage and run the company, a family member who is resident in the UK would own it. From the UK side of things he has established that the uk government would not tax the company as no uk citizen manages it.

I'm trying to establish that due to me being a director and running the company does that mean the company is resident in the USA and requires corporation tax or does it default to resident in its place of incorporation?

Thanks



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Old 02-25-2018, 01:39 PM
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Join Date: Feb 2018
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Was my post removed? It seems to have disappeared?

I understand I will pay taxes on any pay i take as a salary.

My confusion is regards to the corporation tax the company would have to pay.

I am trying to find out if the IRS would be taxing the corporation via corporation tax due to me being the director and running the company even though I don't own it?

Or would the IRS simply not care about corporation tax due to me not owning it?

Thanks



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Old 02-28-2018, 07:58 AM
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Does anyone have any input about this?

Thanks



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