Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 05-14-2011, 03:41 AM
Junior Member
 
Join Date: May 2011
Posts: 1
How to set-up payment to foreign owners?

When an American C-Corp (a simple Delaware Inc) is 100% owned by nonresident aliens, how are the shareholders compensated?

I know that it's possible to style corporate payments as tax deductive consulting fees, not dividends. (Tax savvy for small business By Frederick W. Daily)

Does that mean that corporate profits can be transferred to the nonresident aliens bank accounts (which are most likely foreign bank accounts, as they are nonresident) as "consulting fees"?

And is there a maximum amount of consulting fees similar as to how the tax law limits the wages you can receive from your C-corp "salaries and bonuses paid to shareholder-employees must be reasonable"?

Many thanks in advance!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Does an S Corp's owners loan guarantees increase the owners deductible losses? TaxGuru S-Corporation 0 05-24-2010 02:27 PM
Can I take foreign tax credit or deduct taxes paid on foreign investments in IRA? jswift IRA/Sep 0 02-14-2010 02:03 AM
Mortgage Interest for Joint Owners aldc7d Itemized Deductions 0 02-05-2010 04:07 PM
Special Charitable Contributions for Certain IRA Owners Samatg For 2008 0 02-04-2009 04:34 PM
S Corp 2 owners tax question mike scott S-Corporation 0 12-11-2008 12:23 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning