Tax & Accounting Consultancy · United StatesEntity choice, tax elections and cross-border ownership are far easier to get right than to undo.
We help you think through US structural and accounting decisions before they are made, and plan the fix when earlier ones didn’t work out, with a clear view of when you also need a lawyer or other specialist.
Accounting
At a glance
- Authorities
- Internal Revenue Service (IRS) · State departments of revenue · Secretaries of state
- Forms & references
- Form 8832Form 2553Form 5472Form 1120Form 1065
- Format
- Advisory calls, written summaries or scoped projects
- Common topics
- Entity choice, S corporation election, Form 5472, state exposure
- Cross-border
- US companies owned from the UK or Pakistan
- Legal work
- Referred to a licensed attorney where needed
Overview
What it is, and why it matters.
Most US tax outcomes are settled long before a return is filed. Whether an LLC is taxed as a disregarded entity, partnership, S corporation or C corporation, which states it operates in, and how the owners take money out all shape what you file and what you pay.
Consultancy is the advisory side of our accounting work. It covers one-off questions, such as whether an S corporation election makes sense this year, and larger projects, such as preparing a foreign-owned LLC for its first Form 5472 or planning a clean-up before a financing round.
For owners based in the UK or Pakistan, the US answer is only half the picture. The same income may also be taxed at home, and a US LLC can be treated differently by the owner’s home country than by the IRS. We map the US side in detail, outline the other side, and tell you when a specialist in that country should confirm the position.
Who needs it
Who typically needs it.
- 01
Founders choosing a structure
People deciding between an LLC and a C corporation, or whether to elect S corporation status, before they start taking money out.
- 02
Non-US owners of US companies
Founders in Pakistan or the UK who own a US LLC or corporation and want to know what the US expects of them, and what their home country may tax.
- 03
Businesses expanding into new states
Companies hiring remotely or selling into more states and working out where they now have income tax, franchise tax, sales tax or payroll obligations.
- 04
Owners with a backlog
Businesses with unfiled returns, missing Forms 5472 or years of unreconciled books that need a realistic plan and order of work.
- 05
Companies preparing for investment
Startups whose investors will expect a C corporation, tidy equity accounting and a clean tax history.
When you need it
The moments that usually trigger it.
- You’re about to form a US entity and aren’t sure whether an LLC or a corporation fits your plans.
- Your LLC’s profit has grown and someone has suggested an S corporation election.
- You live outside the US and have only just heard about Form 5472.
- You’ve hired a remote employee in another state.
- An investor has asked you to convert your LLC into a Delaware C corporation.
- You have missed filings from one or more years and want to know what to fix first.
Scope
Exactly what we handle.
Our engagement letter lists these specifically, so you know what is included before any work begins.
- 01
Entity and tax classification comparisons (disregarded entity, partnership, S corporation, C corporation), worked through on your own figures.
- 02
Readiness reviews for Form 5472 and the pro forma Form 1120 filed by foreign-owned single-member LLCs.
- 03
State exposure reviews for income tax, franchise tax and sales tax as you expand.
- 04
Owner compensation planning, including reasonable salary for S corporation shareholders.
- 05
Cross-border questions for US companies owned from the UK or Pakistan, including how US tax interacts with tax in the owner’s home country, at a general level.
- 06
Clean-up planning: an ordered list of unfiled returns, missing information returns and catch-up bookkeeping, with effort estimated up front.
- 07
Accounting policy advice, such as revenue recognition for subscriptions or when to move from cash to accrual.
The process
How it runs, step by step.
Timings depend on the authority and on how quickly documents come together. We tell you what’s typical for your case at the start.
Start with a conversationTell us the question
You describe your situation and the decision in front of you. We confirm whether it is a tax or accounting question we can answer, or one that needs a lawyer or other specialist.
Gather the facts
We ask for formation documents, prior returns, ownership details and figures. Advice is only as good as the facts it rests on.
Analysis and options
We set out the realistic options, their tax and compliance consequences, and the forms and deadlines each one involves.
Written summary
You receive a short written summary of the options and our recommendation, with the assumptions stated.
Implementation, if you want it
If you go ahead, we can prepare the elections, registrations or clean-up work through our other services, or hand the plan to your own advisers.
What we’ll need
The information to have ready.
A typical checklist. After the first conversation we send a version specific to your situation, so you don’t gather anything you don’t need.
About the business
- State of formation, and states where you operate, employ or sell
- Formation documents and any operating or shareholder agreement
- Current tax classification and any elections filed (Form 8832 or 2553)
About the owners
- Country of tax residence and citizenship of each owner
- Ownership percentages
- How owners are paid or take money out
Figures and correspondence
- Recent financial statements or bookkeeping reports
- Prior federal and state returns
- Any IRS or state notices received
Please don’t email passports or bank statements. Once we’ve spoken, you’ll get access to a secure upload.
Common mistakes
Where this usually goes wrong.
The problems we are most often asked to fix, and what they tend to cost.
- Mistake 01
Electing S corporation status with an ineligible owner
S corporations can’t have non-resident alien shareholders. A founder abroad who files Form 2553 can end up with an invalid election and years of returns filed on the wrong basis.
- Mistake 02
Assuming a US LLC is invisible at home
An LLC that is disregarded in the US may be treated as a company in the owner’s home country, or its income taxed there directly. Planning only for the US side can lead to double tax or missed filings at home.
- Mistake 03
Overlooking state obligations after expanding
Remote employees and sales into new states can create payroll, income tax or sales tax obligations. Finding them years later means back tax, penalties and interest.
- Mistake 04
Clearing a backlog in the wrong order
Filing returns before the books are reconciled often means amending them later. A clean-up plan sequences bookkeeping, information returns and tax returns so work isn’t done twice.
Worth knowing
The limits, stated upfront.
We give tax and accounting advice. Legal documents, such as operating agreements, conversions and mergers, need a licensed attorney, and we tell you when that point is reached.
Advice on UK or Pakistani tax is given at a general level; a qualified adviser in that country should confirm the position before you act on it.
Formal representation before the IRS in an examination or appeal requires an attorney, CPA or enrolled agent authorized under Circular 230; we will confirm who handles it if you need it.
Tax law and IRS guidance change. Our advice reflects the position on the date we give it.
Questions
Tax & Accounting Consultancy: frequently asked.
If yours isn’t here, ask us directly. We’ll answer in plain terms.
Ask a questionShould my LLC elect to be taxed as an S corporation?
Sometimes, once profit is high enough that the self-employment tax saving outweighs the cost of running payroll and filing Form 1120-S. The election is only available if every owner is eligible, which rules out non-resident alien owners. We model it on your actual figures before recommending it.
I live in Pakistan. Should my US business be an LLC or a C corporation?
It depends on where the work is done, how you plan to take money out, and if you expect to raise investment. A single-member LLC is simpler but its profit may be taxed in Pakistan as your income, while a C corporation pays US corporate tax and its dividends may face US withholding. We compare both on your figures and flag what a Pakistani tax adviser should confirm.
What is Form 5472, and does it apply to me?
Form 5472 reports transactions between certain US companies and their foreign owners or related parties. A US single-member LLC owned by a non-US person generally files it with a pro forma Form 1120 for each year it has reportable transactions, and money the owner puts in or takes out counts.
Can you help if I’m a UK resident with a US LLC?
Yes on the US side, and we can outline the UK issues. HMRC’s view of a US LLC can differ from the IRS’s, which affects how profits are taxed in the UK and whether US tax can be credited, so a UK tax adviser should confirm your position.
Do you give legal advice?
No. We advise on tax and accounting, and we tell you when a question needs an attorney, for example drafting an operating agreement or converting an LLC into a corporation.
Is a consultation the same as preparing my return?
No. Consultancy covers the decision and the plan. Preparing and filing returns is handled through our tax filing services, which you can use with us or with another preparer.
Related
Often needed alongside this.
The equivalent in our other countries
Speak with a consultant
Talk to us about tax & Accounting Consultancy.
Pick the closest match and we’ll take it from there. You’ll get a written scope and fee before any work begins.
Or use our three-step guide, or email hello@fiscorra.com
