International Tax IssuesAnswered

How does the German Finanzamt treat U.S. disregarded entities?

MD
markus_de_7fa5new member
August 29, 2021 1,342 views 1 answer
germanyRechtstypenvergleichdisregarded entityGmbHentity classificationdouble taxation

My Steuerberater says Germany will tax my U.S. LLC as if it were a GmbH. But my U.S. CPA says the LLC is disregarded and I do not owe U.S. corporate tax. This mismatch means I am paying German corporate tax on income that was never taxed in the U.S. at the entity level. How is this fair, and what can I do? Can the Rechtstypenvergleich result in transparent treatment if I structure the LLC operating agreement correctly?

Related Questions

InternationalAnswered

How does the Israel Tax Authority treat U.S. disregarded entities?

I've been told that Israel may or may not treat my U.S. LLC as transparent. If it treats the LLC as a company, I could face CFC issues. If it treats it as transparent, the income is mine directly. How...

A1
adi_1188·Mar 19, 2020
9431
InternationalAnsweredFeatured

I'm from Germany — how does my U.S. LLC get taxed?

I am a German citizen living in Berlin. I formed a Wyoming LLC for my digital marketing agency serving U.S. clients. I perform all work from Germany. What are my U.S. and German tax obligations? I hav...

TD
thomas_de_1441·Aug 1, 2021
2,2131
InternationalAnswered

How does the India-U.S. DTAA apply to my disregarded LLC income?

I own a U.S. LLC that earns both consulting fees and some interest income from a U.S. bank account. I understand the India-U.S. DTAA should prevent double taxation, but I'm confused about how it works...

PI
priya_in_6ac4·Apr 7, 2019
1,6541
InternationalAnsweredFeatured

I'm from Canada — how does my U.S. LLC get taxed?

I'm a Canadian citizen and resident in Toronto. I formed a Delaware LLC for my software development freelancing business with U.S. clients. I do all work from Canada. What are my tax obligations in bo...

D3
daniel_3436·Sep 8, 2023
2,9341
InternationalAnswered

HMRC is treating my U.S. LLC as a company — how do I fix this double taxation?

I've been filing my LLC income as self-employment on my UK Self Assessment for two years. HMRC opened an inquiry and is now saying my Wyoming LLC should be treated as a foreign company subject to corp...

SD
sophie_ddbd·Nov 24, 2022
1,4871
InternationalAnswered

I'm from Israel — how does my U.S. LLC get taxed?

I'm an Israeli citizen and tax resident in Tel Aviv. I formed a Delaware LLC for my cybersecurity consulting business. I work from Israel serving U.S. clients. What are my IRS and Israel Tax Authority...

N1
noam_1128·Jan 10, 2021
1,5671
InternationalAnsweredFeatured

I'm from Australia — how does my U.S. LLC get taxed?

I'm an Australian citizen and tax resident in Sydney. I set up a Wyoming LLC for my SaaS business targeting U.S. customers. All development and operations happen from Australia. What are my U.S. and A...

LC
liam_c990·Apr 25, 2022
2,4561
InternationalAnswered

I'm from France — how does my U.S. LLC get taxed?

I'm a French citizen and tax resident in Paris. I formed a Wyoming LLC for my design consulting business serving international clients. I work entirely from France. What are my obligations to the IRS ...

PF
pierre_fr_d485·Apr 27, 2019
1,6781
InternationalAnsweredFeatured

I'm from Japan — how does my U.S. LLC get taxed?

I am a Japanese citizen living in Tokyo. I formed a Delaware LLC for my e-commerce business selling digital products to U.S. customers. All operations are from Japan. What are my tax obligations to th...

YJ
yuki_jp_b288·Sep 30, 2019
1,8761
InternationalAnswered

How does Japan tax distributions from my U.S. LLC?

I transfer money from my U.S. LLC bank account to my Japanese personal bank account every month. My Japanese tax advisor says these are dividends from a foreign corporation and should be taxed as divi...

KJ
kenji_jp_6b14·Jan 9, 2019
1,2341

Have a similar question?

ForeignLLCTax members get expert answers with IRS citations. One CPA consultation costs $200+. Full access is $9.99/month.

Become a Member — $9.99/mo

Disclaimer: All content on ForeignLLCTax.com is created by a tax professional and is provided for general educational and informational purposes only. It does not constitute tax, legal, or accounting advice, and should not be relied upon as such. Every tax situation is different — for advice specific to your circumstances, please consult a licensed CPA, Enrolled Agent, or tax attorney. By using this website, purchasing a subscription, or accessing any tools or services, you acknowledge that no client-professional relationship is established between you and ForeignLLCTax.com or its operators. This website is not affiliated with the IRS.

Watch the walkthroughs