LLC USA declarations: preconceived ideas and pitfalls to avoid!

Our team of specialists has been assisting U.S. LLC partners (operating, investment and real estate LLCs) for nearly 15 years.

There can be many pitfalls when it comes to filing your U.S. LLC tax return. We have listed here the many misconceptions and pitfalls that some U.S. LLC partners sometimes fall into.

Pitfall 1: "I don't have to report my LLC income to the US".

The tax declaration of your LLC in the USA is mandatory.

Indeed, it is imperative to declare your income from your American LLC to the IRS (American tax authorities), even if this income is not directly taxed in the United States.

In case of error, omission, or forgetfulness, the IRS can penalize up to $25,000 per year per form. You can call on our specialists by clicking here to declare your American LLC income from $649 per year .

Trap 2: "I don't know how to regularize my declarations so I prefer to let it go".

Attention! Big mistake. Our specialists do not judge you, and are at your disposal to come and regularize the declarations which would not have been carried out the past years.

It is mandatory to file your U.S. tax returns for your U.S. LLC. Even when you have no profits or sales, it is mandatory for partners holding a US LLC to file tax returns with the IRS, under penalty of being severely sanctioned by the IRS.

Our teams are at your disposal (click here) in order to regularize your U.S. tax returns of the past years and to avoid sanctions .

Pitfall 3: "Nothing forces me to declare my income in France".

VERY RISKY AND ILLEGAL.

You cannot seek to avoid your tax obligations in your country of residence.

Indeed, not declaring in France the profits made by an American LLC constitutes a fraud, where an adjustment can generate 80% of increase, late penalty, and criminal sanction up to 3,000,000 euros of fine and 7 years of imprisonment.

Pitfall 4: "I can file my own tax returns".

It's true; you don't have to hire a tax preparer or a CPA to do your tax returns. Nevertheless, the use of a tax preparer is essential to avoid errors or omissions.

While some service providers tend to downplay the importance of U.S. tax filings and the associated obligations, they are critical to the sustainability of your business.

Not seeking out a specialist (even one different from us!) is dangerous and exposes you to significant penalties unnecessarily. Making tax returns requires a very solid tax foundation and the tax forms are complex and numerous.

Pitfall 5: "My turnover is $0, I have nothing to declare".

FALSE and dangerous.

Even if your sales are 0 dollars at the end of the calendar year, it is mandatory and imperative to declare your LLC and its income (even zero!) to the IRS.

The IRS severely penalizes this type of omission.

Moreover, some states (including France) require the partners of a U.S. LLC to declare the accounts opened and held abroad. Hiding the existence of a US LLC from the tax authorities of your country of residence is dangerous.

Even though the US has not signed CRS agreements, there are bilateral agreements in place to detect such concealment.

Important preconceived ideas: "I created my American LLC with another provider; is it possible to entrust you with the tax returns anyway?

YES! You will be received by our teams of specialists with all the attention required to complete your U.S. tax returns (and this, without any compensation, and at the same rate as our clients!).

In addition, we can take over the mandate of your company's registered agent (free of charge) so that we can renew your company every year (for a fee of $250) .

Recurring question, "How do you differ from other players in the market?"

Our know-how is recognized by our partners (JP-Morgan Chase, Bank of America, etc.) and by the trust of our clients, who have honored and obliged us for over 15 years.

Expert LLC USA does not charge any unnecessary fees and accompanies you according to the needs of your business.

Our in-house teams or our lawyer/accountant partners can assist you in: drafting contracts, consulting with a tax specialist, filing returns with a certified public accountant, applying for a U.S. Visa with a lawyer, setting up a trust in the U.S., etc.

We offer a premium service for your US and French tax return. Using our services allows you to fully meet the requirements of the IRS. Make an appointment with one of our specialists now.