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Starting a Business Abroad

Choose the right entity structure — US LLC, foreign corp, sole proprietor. Compare tax treatment, filing obligations, GILTI, Subpart F, and compliance costs.

Business Details

Expected Annual Revenue ($)

Expected Expenses ($)

Host Country Corp Tax Rate (%)

Host Country

Entity Structure

📋 Sole Proprietor / Schedule C

Simplest. All income flows to your 1040. SE tax applies. FEIE available on earned income.

🇺🇸 US LLC (SMLLC — disregarded)

Same as sole proprietor for tax. Liability protection. No separate return required. SE tax applies.

🏢 Foreign Corporation

Separate entity. CFC rules, GILTI, Form 5471. Can defer some income. Corp tax + dividend tax.

🏛️ US S-Corp

Salary + distribution split. Saves SE tax. But: must have US payroll, complex for expats.