I have this Italian friend

March 17, 2015 7:04 AM

My friend has started a small business in Italy and I am the US representative/minority owner. We have not yet begun production of our product. Can anyone tell me about filing US taxes with him as an foreign majority owner?

I consulted an accountant who said we do not have to file for 2014 but it would not hurt to establish a presence. But I am concerned about my friend's legal status as a Italian citizen. Does it make any difference?
For next year I will obviously pay an accountant to do the taxes but this year is just paperwork so do not want to invest in paying someone to do the taxes.
Am I being penny wise and pound foolish to not have an accountant do the taxes?

posted by shaarog to Law & Government (2 answers total)

This is really a situation that calls for professional advice. You've already spoken with an accountant; if that person didn't answer your questions your best options are to go back to that accountant, go back to a different accountant, or speak with a lawyer.
posted by Zonker at 7:56 AM on March 17, 2015 [1 favorite]

Am I being penny wise and pound foolish to not have an accountant do the taxes?
Yes. And really, I'd be talking to a tax attorney, or at least a CPA with extensive knowledge in cross-border transactions.

The tax consequences depend on the type of entity, the underlying business activities, the capital structure and funding, the manner of distributions, where the business is located, where the products are sold, and so so so many other things. I am not exaggerating when I say there are a hundred ways you could mess this up. You need professional advice and you need it yesterday.
posted by melissasaurus at 9:15 AM on March 17, 2015 [1 favorite]