Tax lawyer specialized in structuring foreign companies for American expats
Budget: €250 – €750 EUR
Hello!
I am co-founding a company with a Polish co-founder. However, I know that as an American citizen, if you open and own more than 10% of a foreign company I was told I would have to file the "onerous" 5471 Form. I was recently advised by two different people to let my cofounder open the company in Estonia and then be an independent contractor to the company but have a separate cofounder agreement with him in which we specify the decision-making, shares and IP. Is this ok or would it be problematic for the IRS? The alternative is to own 45% of the Estonian corporation as an American Expat - I know I have to file form 5471. Do I have to file this annually? How much does it cost? Also, are there other forms I need to file for the corporation besides this one? Are there additional taxes due because of opening a foreign corporation? What is the best way to structure this? Thanks Marcela
I am co-founding a company with a Polish co-founder. However, I know that as an American citizen, if you open and own more than 10% of a foreign company I was told I would have to file the "onerous" 5471 Form. I was recently advised by two different people to let my cofounder open the company in Estonia and then be an independent contractor to the company but have a separate cofounder agreement with him in which we specify the decision-making, shares and IP. Is this ok or would it be problematic for the IRS? The alternative is to own 45% of the Estonian corporation as an American Expat - I know I have to file form 5471. Do I have to file this annually? How much does it cost? Also, are there other forms I need to file for the corporation besides this one? Are there additional taxes due because of opening a foreign corporation? What is the best way to structure this? Thanks Marcela