US Tax Services
Bambridge Accountants prides itself on offering an extensive choice of US expatriate tax services, as well as open, transparent, flat-fee pricing. See below for a full list of our tax preparation services.
Bambridge Accountants specialises in the preparation of US expat taxes, including the streamlined process, for Americans living abroad.
We have an expert team of tax advisers and IRS Enrolled Agents who have extensive experience in the field of expat tax preparation. We provide accurate, efficient expat tax services for US citizens living abroad and can advise on the interaction of UK and US taxes.
Federal Tax Return
Federal Tax Return Preparation for Americans living abroad, foreign nationals and those who have recently repatriated to the US.
Included in our Federal Package:
- All standard expat forms: Forms 1040, 1116, 2555, 8938
- All standard schedules: Schedules A, B, C (profit and loss from small business), D, and E (rental property), Schedule K-1s, and bank and brokerage transactions
State Tax Return
As IRS Enrolled Agents, with knowledge of your situation, we can advise you if you need to file a state return. Generally speaking:
- If you last resided in or maintain residency in California, New Mexico, North Carolina or Virginia, you will likely need to file a state tax return.
- If you last resided in Alaska, Florida, Nevada, South Dakota, Texas, Washington or Wyoming, then you probably will not need to file a state tax return.
- For most other states, it will depend on your personal circumstances, how long you have been abroad, what ties you have to the specific state, etc.
Catch Up on US Tax Returns
If you haven't filed, or didn't know you needed to file, your US tax returns, there is a process to get everything up to date - the streamlined filing procedure.
Using the streamlined filing procedure, you need to file three years of federal tax returns with all the appropriate forms and schedules and you also need to file six years of foreign bank account reports.
Main benefits of the streamlined filing procedure:
- all penalties will be waived under the streamlined procedures
- you only need to file the last 3 federal personal tax returns
- even if returns properly filed under these procedures are subsequently selected for audit under existing audit selection processes, the taxpayer will not be subject to failure-to-file and failure-to-pay penalties or accuracy-related penalties with respect to amounts reported on those returns
Foreign Bank Account Reporting
The FBAR is only required if you have a financial interest in one or more overseas financial accounts and the total value of all of the financial accounts combined was $10,000 or more during any point during the tax year. The FBAR (FinCEN Form 114) must be filed electronically with the US Treasury Department (not the IRS) by June 30th (there are no extensions).
Small Business Tax Return
A business return is needed for any business that is considered a separate entity. Examples of this include (but are not limited to): Forms 1065, 1120 and 1120S
Included In our Business Package:
- All relevant Forms, Schedules and K-1′s
Delaware LLC's VS C-CORP
Delaware’s advantageous state business laws and regulations, which are familiar and popular among investors, make it a choice location when deciding to form a company in the US. Delaware is also unique due to its special court, the Court of Chancery, which is dedicated to quickly settling business disputes with expert judges.
A Delaware Limited Liability Company (Delaware LLC) is a great option if you are looking for a simple, inexpensive and flexible way to start a company in the US.
The owner of the Delaware LLC drafts an LLC Operating Agreement, adapting the terms and rules to suit the business needs of the company. In this agreement the members have complete freedom when deciding how to structure and organise their company.
A Delaware LLC can further be tailored to suit the needs of the company in terms of taxes. Members of the LLC can decide if they want their company to be taxed as an S corporation, C corporation, sole proprietorship or partnership.
Another advantage of a Delaware LLC is that it is inexpensive and simple to start. After a small filing fee when setting up a company, there are typically two annual fees a Delaware LLC is required to pay; these include the Delaware Franchise Tax (a flat rate of$300 due on 1 June every year) and a Delaware Registered Agent Fee (a Registered Agent is a requirement of all Delaware LLCs and corporations).
A Delaware LLC also provides protection for both its members and the company itself. Any members’ personal assets are kept separate from the LLC’s assets, giving members protection against creditors of the company and vice versa.
A particular benefit of forming an LLC in Delaware rather than another state is the privacy granted to the members of Delaware LLCs. The members of a Delaware LLC are not legally required to disclose any information concerning themselves to the state of Delaware, unlike many other states.
Another option to consider when starting a company in the US is to incorporate as a C Corporation. Although C-Corps can be more expensive to run, with greater start up costs than a Delaware LLC and the possibility of double taxation (annual profits are taxed, due annually on 15 April, and any profits which are then distributed to shareholders as dividends are also taxed), C-Corps have greater potential for high-growth through the sale of stocks to investors.
However, a C corporation lacks the flexibility in structure of an LLC. A C- Corp is legally required to be made up of three tiers of power: shareholders, directors and officers. Delaware law also dictates the role each person plays within the corporation.
There are additional legal requirements of a C- Corp, which include shareholder and Board of Directors meetings, the maintenance of corporate records and annual reports and fees, all of which are optional within a Delaware LLC. Additionally, a C corporation must provide the name and physical address of all the Directors and one of the officers on the annual report, as well as corporation’s main business address.