What Happens when a U.S. Person Opens a Foreign Corporation?

If you are a U.S. person and decide to open a foreign corporation, be careful about the potential U.S. federal tax filings and taxes connected with that foreign entity. A non-U.S. company is generally not subject to federal income taxes unless it generates income from U.S. sources, or it has U.S. ownership. A foreign corporation must be mindful of two main federal tax issues: 1. U.S. trade or business risks and effectively connected income (ECI) 2. Controlled foreign corporation (CFC) rules In this video, we cover some of the high-level issues for foreign entities with U.S. ownership. For a larger database of tutorials, please visit our website and search for your question: https://knottlearning.com/ DISCLAIMER: The information provided in this video may contain information about tax, financial, and legal topics. Such materials are for informational purposes only and may not reflect the most current developments. These informational materials are not intended and should not be taken as tax, financial, or legal advice. You should contact an advisor to discuss your specific facts and circumstances. Self-help services may not be permitted in all states or jurisdictions. The use of these materials does not create an attorney-client or confidential relationship. This video does not include information about every topic or issue related to these informational materials. #Taxes #IRS #CFC #Form1120F