Go Back  British Expats > Living & Moving Abroad > USA
Reload this Page >

US vs UK taxes for self Employed

US vs UK taxes for self Employed

Old May 10th 2021, 4:59 pm
  #1  
Just Joined
Thread Starter
 
Joined: Jun 2013
Posts: 7
ajlondon is an unknown quantity at this point
Default US vs UK taxes for self Employed

Hi All, have been trying to get a seemingly easy answer
Assuming 200K USD in annual profits is there a simple calc of earnings after taxes,
Comparing a S-Corp in California vs a Ltd company in the UK? US tax resident/GC holder

UK - seems you would go the dividends route then potentially some sort of top up taxes back to the US,
US- S-Corp is somewhat similar but given Biden/ Trump taxes it is a bit of a guess

My guess is living in the UK would probably be a wash but benefit from not paying CA state taxes.

Trying to make some plans, having asked a few people but maybe here someone have a real word example.
ajlondon is offline  
Old May 13th 2021, 8:40 pm
  #2  
MODERATOR
 
penguinsix's Avatar
 
Joined: Nov 2006
Location: Hong Kong, mostly.
Posts: 5,191
penguinsix has a reputation beyond reputepenguinsix has a reputation beyond reputepenguinsix has a reputation beyond reputepenguinsix has a reputation beyond reputepenguinsix has a reputation beyond reputepenguinsix has a reputation beyond reputepenguinsix has a reputation beyond reputepenguinsix has a reputation beyond reputepenguinsix has a reputation beyond reputepenguinsix has a reputation beyond reputepenguinsix has a reputation beyond repute
Default Re: US vs UK taxes for self Employed

Last I checked a non-US citizen cannot own an S-Corp. You would likely be looking at an LLC arrangement rather than an S-Corp setup.
penguinsix is offline  
Old May 13th 2021, 8:51 pm
  #3  
tht
DE-UK-NZ-IE-US... the TYP
 
Joined: Mar 2010
Posts: 2,257
tht has a reputation beyond reputetht has a reputation beyond reputetht has a reputation beyond reputetht has a reputation beyond reputetht has a reputation beyond reputetht has a reputation beyond reputetht has a reputation beyond reputetht has a reputation beyond reputetht has a reputation beyond reputetht has a reputation beyond reputetht has a reputation beyond repute
Default Re: US vs UK taxes for self Employed

Originally Posted by penguinsix View Post
Last I checked a non-US citizen cannot own an S-Corp. You would likely be looking at an LLC arrangement rather than an S-Corp setup.
LLC is similar in that it is pass through. I have seen non US owned LLC’s but the file as a C-Corp with the IRS so they can pay the required taxes, the other option is 35% withholding:
https://www.epgdlaw.com/llc-foreign-owners/

to the OP you are not finding it because it’s not that simple. You need to understand all the income costs and treatment of it all. Get an old copy of turbo tax pro and run some numbers on schedule C / SE depending on how your doing it.

things like QBI deduction can make a significant difference as well for US SE, as can depreciation if physical assets are involved but the devil is in the details

Last edited by tht; May 13th 2021 at 9:41 pm.
tht is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2021 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.