# Offshore Biz Entity - US GAAP?



## BR Farmer (Jun 21, 2020)

Hi - I am considering opening a consulting business (limited liability, single owner). Regardless of the size of the business I have to report income to the US on forms 8858 or 5471 on an US GAAP basis?

This business would generate minimal revenue, like $50k per year. Preparing financials following US GAAP would be onerous to me as I would have to hire a larger accountant in my host country to prepare such financials. What are my options? What if I just file not using US GAAP?

Thanks


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## Moulard (Feb 3, 2017)

You may want to ask to have your post moved into the expat tax forum where you might get a better response.

If you plan to operate under a private limited liability company or sole trader type arrangement your business may not be considered a corporation for the purposes of Form 5471 filing, unless that is, you elect to treat it as a corporation.


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## Bevdeforges (Nov 16, 2007)

This is a big one for just about any American living abroad who wants to set up their own company. Your options range from just not reporting the entity other than as your "employer" to keeping your books according to US GAAP and filing all the requisite forms. (And of course there is always the option of just falling off the IRS radar altogether by not filing at all.)


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