Depending on the long term goals of the taxpayer he might at least defer paying US tax, but if he intends to bring that money back into the US at some point it will probably be taxed as foreign profits. There are some methods to further defer or avoid US taxation of repatriated profits, but it is a complex area of the tax code that is very specific to the taxpayer's situation and way beyond what we would attempt to explain here.
Well, as we mentioned earlier, U.S. taxation is anything but trivial. We hope this article was educational enough to give you some idea on how U.S. taxation works, and what to do next.
Keep in mind two important points:
If you think you have a tax question that deserves to be answered and published in this article by all means email it to us, and we will do our best to answer and publish it. For other, more specific questions we recommend our 30 minute tax skype or phone consultation that you can order directly here.
U.S. Bank Accounts For Foreign Entrepreneurs
Many international businesses need to open a U.S. business bank accounts to make doing business with U.S. customers more convenient and to avoid the hassle of foreign currency and exchange rates. In general, it is strongly recommended that a business entity maintains a separate bank account. This would help keep entity in compliance with IRS record-keeping
requirements and will provide for a better way to manage company’s cash flow.
After 9/11 and with the passing of the Patriot Act it became really hard for foreigners to open
U.S. bank accounts. Today all US banks are required to document verification that the person
opening the account is the person on the I.D. they’re receiving. The easiest solutions practically