LLC USA declaration: what is the role of the tax treaty between France and the USA?

On August 31, 1994, the United States and France signed a tax treaty to avoid double taxation.

This treaty will allow a non-US resident to be liable for tax only in his or her country of tax residence. A French tax resident owning an LLC USA, will in principle, not be liable for any tax in the United States.

This international tax agreement does not exempt U.S. LLC holders from reporting income from the entity in the U.S. and in their country of tax residence.  

How do I declare the income of my LLC USA?

The first step before starting your U.S. tax returns is for our staff to verify that your LLC and your legal documents are in compliance with the laws of the state in which it is headquartered.

In order to know how to declare, it is first necessary that our specialists identify the status of your LLC, i.e. ETBUS or not ETBUS, with the help of the supporting documents you will have transferred to us.

The important thing to keep in mind is that the tax returns differ depending on the number of partners. For single partner LLCs in the US, Forms 1120 and 5472 will normally need to be filed. For multiple partner LLCs, forms 8804, 8805, 8813, 1065 and K-1 must be filed.

Filling out these forms can be tedious and technical, our specialists at ExpertLLCUSA.com have acquired this know-how through their many years of experience and practice. Indeed, understanding U.S. tax law can be difficult. When you forget information or make a mistake on your return, you can be fined $25,000 per form per year. Do not hesitate to contact us so that we can take care of your declarations, to avoid any prejudicial error.

With the intention of protecting your rights as well as possible, your tax specialist ExpertLLCUSA.com will be able to accompany you throughout the year in the management and the life of your LLC. Our collaborators are at your disposal in case of questions concerning your American entity.

What steps should I take to declare the income of my LLC USA, in France?  

The U.S. tax treaty between France and the United States does not prevent you from having to file a tax return for your LLC USA in your country of residence for tax purposes in France.  

The forms to be filled out are the following: Form 2047 (foreign source income), 2042 C and 2042 C PRO, 3916 (accounts held and opened abroad).

Regarding the tax regime, in France, the LLC USA is considered as a "semi-transparent" entity for tax purposes thanks to article 7 of the 1994 Franco-American treaty. Thus, although the American LLC declares its profits in the USA, it is the partners who must personally pay the tax on the profits of the LLC.

ExpertLLCUSA.com's specialists are committed to helping you file your LLC USA returns on a regular basis. ‍

If you have any questions, our formalists are at your disposal to help you with your tax returns and the management of your American LLC.

Entrusting Expert LLC USA with your declarations, a guarantee of security ?

ExpertLLCUSA.com's specialists are experts in American taxation and LLC USA tax returns. Calling on our services allows you to secure your steps in order to avoid any error.

The IRS may be lenient with a good faith taxpayer but will not be lenient with a deliberate fraud, oversight or delay in your LLC USA returns.

It is more prudent for the taxpayer to entrust a formalist with the task of filing his or her returns in order to avoid any penalties from the American tax authorities. It is imperative for the taxpayer to be serious. Thus, our collaborators are at your disposal to accompany you in your declarations relating to your LLC USA.