UK limited company and relocating to the US

[jamesbrown]

Thanks, yes I've started a bit of a search back and already found some useful points. I'll post more info here as I find it.

It looks like taking the disregarded entity route is pretty straightforward and preferable in most circumstances.

As I say I'll most probably get some formal advice too.

Yes, I would definitely go that route.

Would recommend this company for advice (no affiliation):

https://www.greenbacktaxservices.com/

This is what they say about form 5471, for example:

https://www.greenbacktaxservices.com...ter/form-5471/

[raggedyak]

Gosh, you really don't want to do this if you can avoid it (retain your UK company, that is). Form 5471 is *seriously* complicated and expensive to file and you will most definitely need a US tax professional to assist you.

You could try WordIsBond as he went through a similar thing (US wife, UK company, moved to the US), but he hasn't posted recently.

There are a few threads here regarding taxation of US citizens in general, but you'll need google or similar to find them because the embedded search is crap.

Thanks, yes I've started a bit of a search back and already found some useful points. I'll post more info here as I find it.

It looks like taking the disregarded entity route is pretty straightforward and preferable in most circumstances.

As I say I'll most probably get some formal advice too.

[jamesbrown]

Gosh, you really don't want to do this if you can avoid it (retain your UK company, that is). Form 5471 is *seriously* complicated and expensive to file and you will most definitely need a US tax professional to assist you.

You could try WordIsBond as he went through a similar thing (US wife, UK company, moved to the US), but he hasn't posted recently.

There are a few threads here regarding taxation of US citizens in general, but you'll need google or similar to find them because the embedded search is crap.

[raggedyak]

Hi,

New to the forum!

Does anyone have any experience with becoming a US person for tax purposes, and/or relocating to the US whilst a director of a UK limited company?

Basically, I am a UK citizen and resident, and I have been contracting outside IR35 through a limited company (I am the sole director and shareholder).

My wife is American and I am in the final stages of acquiring a green card, with plans to relocate to the US later this year.

I am trying to understand the implications of becoming liable for and filing US tax returns, especially regarding
1. reporting of the directorship/shareholding of the UK limited company,
2. how dividend payments would be handled assuming that they were paid out to me from the UK company once I had taken up residence in the US,
3. whether I might retain the option to undertake the MVL process and obtain entrepeneur's relief once I had taken up residence in the US.

I realise that it would probably be easier to complete the MVL process prior to entering the US, but I'm likely to continue doing work for my current client up until my point of departure, and may even continue to do so once I'm state-side, so I do need to work out the implications of the company still being open when I emigrate.

I also realise that this is a rather niche topic, and I'll likely consult a cross-border accountant in any case, but it would be great to hear from anyone with similar/related experience.