# IRS forms for UK ltd



## hbrown1 (Jan 13, 2015)

Hi all,

Last year I had to leave my job in the US to return to England for personal reasons, but they were keen to let me work remote on a contract basis. I am a citizen of both countries.

For this purpose I set up a private ltd of which I am the sole director.

The company has provided me with a W-9, which I believe first I need a completed SS-4, but then I'm lost as to what to file and when, and I'm concerned about double taxation. Is it even worth taking the contract, because at this point I'm considering declining it.


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## StewartPatton (Aug 5, 2014)

As long as you file everything correctly, you won't be double taxed (in the sense of having to pay tax at the normal rates in both countries). You will just effectively have to pay tax in the country where the taxes are the highest (which is probably the UK).

If you are just working for the U.S. company, then you don't even need the UK Ltd (at least for U.S. tax purposes)--all it does is complicate things. If there's some reason that you need to have a company of your own to contract with the US company, then you should own 100% of the stock of the UK Ltd and elect for it to be disregarded as a separate entity from you for U.S. tax purposes. You can do that by using IRS Form SS-4 to obtain an EIN for the UK Ltd then IRS Form 8832 to make the election. You then need to file an IRS Form 8858 for the UK Ltd each year.


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## hbrown1 (Jan 13, 2015)

Thank you, Stewart.

Unfortunately it does have to go through a Ltd, but I can see where to go with the forms you listed.

Much appreciated.


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## StewartPatton (Aug 5, 2014)

Just had another thought: If you can go through a Delaware LLC instead of a UK Ltd, than that makes the whole thing massively easier for U.S. tax purposes. A wholly owned Delaware LLC would automatically be disregarded as a separate entity from you, and there would be nothing to file, now or ever.


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## BBCWatcher (Dec 28, 2012)

Nothing to file beyond ordinary tax and financial filings, that is.

But, taking an educated guess, the U.K. Ltd. (sole director) is primarily for important U.K. tax reasons that may not be fulfilled with a U.S. (e.g. Delaware) LLC. Provided one understands the additional U.S. side reporting requirements (and the time-related costs of that additional reporting burden), that construction can work.


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