We operate in Portugal without a separate local company yet. Is that a Form 8858 foreign branch issue or only an FDE issue after we incorporate there?
Our U.S. business opened operations in Portugal and hired a local team, but we still have not formed a separate Portuguese company. One adviser says Form 8858 only comes in once there is a foreign disregarded entity. Another says a direct foreign branch can also trigger it. Because there is no local subsidiary yet, I am not sure which concept we are actually dealing with.
This matters because our books were not set up expecting a formal foreign information return. If the branch itself can create Form 8858 reporting, I need to fix the bookkeeping assumptions before year-end.
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