US corporate tax on Americans abroad

October 19, 2005 1:57 AM

Do any MeFi Americans have experience of (part)-owning companies overseas?

Particularly as regards US corporate and personal tax. I am considering becoming part-owner of a small limited company in the UK, and I'm wondering what the tax implications of this are in the US (so I think experience from other countries would be relevant). Other owners would be UK citizens. I would probably not be the majority owner, but probably would be a director of the company or be employed by the company in some capacity.

I will take professional advice on this matter, but I thought I'd ask here if anyone has any comments about particular pitfalls or burdens I might ask about to help shape the discussion. What I really want to avoid is the long hand of Uncle Sam reaching into the operations of the UK company and mucking up the works just because I'm a US citizen, where otherwise he would have no jurisdiction.

posted by sagwalla to Work & Money (3 answers total)

Sorry for the hijack, but.. if anyone who's really savvy about this is reading, could you also answer in the reverse possibly? (A UK citizen owning the majority of a US company) I was going to ask the same question but in reverse, so might as well not take up more front page space..
posted by wackybrit at 5:15 AM on October 19, 2005

Response by poster: I got a rock...[sigh]
posted by sagwalla at 1:58 AM on October 20, 2005

BTW, if it helps.. the UK does not have an international income requirement on taxes, so in terms of the UK's taxes, as long as you pay their local taxes in the business, you should be good.. but in terms of income, you should have no taxes to pay there UNLESS you are in the country and staying there.
posted by wackybrit at 4:01 PM on October 21, 2005