# Form 5471 category filer 2 and 3 or just 2



## Asensation (Mar 25, 2019)

Hi,

I am a US citizen owns 50% of UK limited company, the other shareholder is British (not living in US) and owns 50%. I am a director, so I know I am a category 2 filer, but I'm a bit confused by the term "acquire" on this form.

We started the company in 2017 with each of us as 50% shareholders. In 2017, filed 5471 but the company wasn't operating yet, so it was simplified.

So now for 2018, am I a category three filer because I have 10% or more in shares?

I haven't acquired any more shares, just what I started with.
Thanks for the help.


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## SoCal85 (Jan 14, 2019)

Category 3 only in the year you first acquired the shares (2017) or acquired an additional 10% without regard to your previous shares you already owned. For 2018 you technically don't have a category of filer/filing requirement unless somehow through constructive ownership you are deemed to own part or all of the other shareholder's shares and the entity is considered a controlled foreign corporation. Is this person related to you in any way?


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## Asensation (Mar 25, 2019)

Hey, thanks for replying.

No issue, not related at all. From gathering, no category three filing obligations, but I'm still director, so looks like just category 2, which isn't very complex.


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