ajlondon

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.

penguinsix

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.

tht

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