z0inks

I work for a company that has successfully secured me an L1A Visa to move from the UK to the Florida office.

I also do some freelance work on the side as the director of a separate Ltd company, with my brother as the other director.

I’m aware that I can’t work for any other US companies while on my L1A Visa, but can I keep my separate UK Ltd company or should I resign as a director?

Can you give any pointers as to where I can find advice on how it might affect my tax etc.? I don’t take a salary but do pay occasional dividends.

(reposted here as advised on previous thread)

Flabound oneday

yes you can remain a director

regarding tax you might well want to consult a good CPA

Steve_

It's physically working in the US that is the problem, so if you're not physically working for the UK corporation while in the US then it doesn't matter. It's effectively the same as if you held stock in BP or something, they pay you a dividend, you report it as income.

Read IRS publication 519 for the tax information: http://www.irs.gov/pub/irs-pdf/p519.pdf

From the sounds of it you will need to file dual-status for 2014, which is not something tax software or crappy form-filling accountants can help you with. Read the instructions. Essentially a pro-rated return for your first year so you don't get US tax on your income before you moved to the US.

Also you need to file a P85 and an R105 in the UK.

And you'll have to file a form 5471 with your 1040 in future years from the sounds of it.

penguinsix

Please note if you are the director of a foreign company at a certain ownership level (varies) then you *may* have to file a special tax return form called 5471.

Check the requirements. Not sure how it affects a person an L visa or if you qualify.

http://www.irs.gov/pub/irs-pdf/i5471.pdf

Sportychico

Once you got residency you can resign / close down UK operation.....once you have residency (usually about 18mth) you are free to do what you wish....this is my plan once my UK business is 'big' enough to qualify for L1....I will then sell it or wind it down...this advice was given to me by 2 respected lawyers...one in Miami the other in London

Steve_

That's not what he's saying, he's saying it's a separate other company from his sponsoring company IIUC.

z0inks

That’s right.


Thank you for the advice, everyone. I’ll do some further reading and will decide if it’s worth the hassle to keep it on.

Flabound oneday

define 'big enough' there is no set criteria....beside I thought you already have /or had an L1 ??