Living Outside the U.S. Doesn't Mean You're Exempt From U.S. Taxes
Foreign individuals and foreign-owned businesses can have U.S. tax filing and reporting obligations when earning U.S.-source income, operating a business in the United States, or owning a U.S. entity.
Whether you're a nonresident earning U.S. income, a foreign entrepreneur with a U.S. LLC, or an international business owner operating across borders, understanding your U.S. tax responsibilities is essential.
At Shimotsu PLLC, we specialize in U.S. international tax compliance and advisory services, helping foreign individuals and businesses navigate complex filing requirements, determine applicable tax obligations, and address cross-border tax matters.
Have Questions About Your U.S. Tax Obligations?
Get specialized guidance for your U.S. business, income, or international tax situation.
Common Situations We Help With
Whether you're establishing a U.S. business or managing existing U.S. financial interests from abroad, you may need specialized tax guidance if you:
Own a U.S. as a foreign individual or business
You've formed or acquired a U.S. limited liability company while living abroad and need to understand its federal tax classification, filing requirements, and potential foreign-owner reporting obligations.
Earn U.S-sourced income as a nonresident
You live outside the United States but receive income from U.S. sources, such as business activities, investments, or other income streams, and need to determine your U.S. tax filing responsibilities.
Work temporarily in the United States
You're a foreign individual temporarily working in the U.S. and need to understand how your presence, compensation, residency status, and applicable tax rules affect your filing obligations.
Operate a U.S. business while living abroad
You manage or own a U.S. business from another country and need help understanding your U.S. business activities, income tax obligations, and ongoing compliance requirements.
Formed a U.S. company as a foreign owner
You've established a U.S. corporation or other business entity and need to understand the tax implications of foreign ownership, applicable information returns, and federal filing requirements.
Common U.S. Tax Forms and Reporting Requirements
Foreign individuals and foreign-owned businesses may have unique U.S. tax filing requirements depending on their income, business structure, ownership, and activities within the United States
Form 5472
Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. Also relevant to certain foreign-owned U.S. disregarded entities.
Pro Forma Form 1120
A simplified corporate income tax return filing used in conjunction with Form 5472 by certain foreign-owned domestic disregarded entities.
Form 1040-NR
U.S. Nonresident Alien Income Tax Return for eligible nonresident individuals with applicable U.S. filing obligations.
Form 1120-F
U.S. Income Tax Return of a Foreign Corporation, generally used by foreign corporations with applicable U.S. filing requirements.
ECI & U.S. Trade or Business Analysis
Evaluate whether income is effectively connected with a U.S. trade or business and determine the relevant tax implications.
Entity Classification
Review the U.S. federal tax classification of your business entity and how its structure and ownership affect filing requirements.
Specific filing obligations depend on entity classification, ownership, income, business activities, and applicable tax law.
International Tax Insights & Resources
Running a U.S. business from abroad or earning income in the United States can introduce unfamiliar tax obligations. Explore educational resources designed to help foreign individuals and international business owners better understand U.S. tax compliance.
FAQ
These FAQs provide general information, not individualized tax advice. Filing requirements and available relief depend on the facts and applicable law.
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Houston, TX, USA