Businesses & Corporates
9 services, 8 core filings, US and UK
US and UK tax, accounts and reporting for companies and owners operating in both countries, from first incorporation through to sale.
Who is the Businesses & Corporates division for?
A company that crosses the Atlantic acquires a second set of filings, and so do its owners. We prepare the business returns and the information returns that attach to the people behind them, and we keep the books that both depend on.
Services in this division
- Business Tax Returns
US federal returns for companies, partnerships and LLCs with UK owners, UK parents or UK operations, prepared alongside the UK accounts.
- International Tax
US reporting for owners of UK companies and partnerships, and for UK groups with US entities, including Forms 5471, 8858, 8865 and 5472.
- Business Incorporation
Choosing between a UK limited company, a US LLC and a US C corporation, with the tax view each country takes of the entity you pick.
- Bookkeeping & Accounting
Bookkeeping kept to a standard that feeds a UK corporation tax return and US Forms 5471 or 5472 without rebuilding the figures later.
- Payroll Services
Payroll for UK companies with US staff and US companies with UK staff, covering PAYE, US withholding and the social security agreement.
- Sales Tax & Nexus
US state sales tax registration and filing for UK sellers with economic nexus, set against the UK VAT position on the same sales.
- Financial Statements
Annual accounts for UK companies with US owners and US subsidiaries of UK groups, prepared so they also support the US and UK tax filings.
- CFO Advisory
Finance and tax decisions for companies operating in both countries: funding a US subsidiary, returning profit, raising capital and planning cash.
- M&A Tax
Tax structuring and due diligence for US/UK acquisitions and disposals of companies, shares and trades, for buyers and for sellers.
Two sets of filings for one business
A US citizen who owns or controls a UK limited company reports it on Form 5471 each year, with an initial penalty of $10,000 per form per year for failing to do so.
The company's profits can be taxed to the shareholder personally under the controlled foreign corporation rules, before any dividend is paid. The regime for net CFC tested income, formerly GILTI, was amended by 2025 legislation for tax years beginning after 31 December 2025. Section 962 elections and the high-tax exception are options to review.
British owners of US entities face a different list. A US corporation that is at least one quarter foreign-owned, and a US LLC wholly owned by one foreign person, reports transactions with its owner on Form 5472, where the penalty is $25,000 per form per year. A US LLC is transparent for US tax by default, while HMRC commonly treats it as a company, so the same profit can be taxed in different hands and relief from double tax is not automatic.
Operating in both countries raises practical questions early. Selling into US states can create sales tax obligations without any physical presence, and each state sets its own rules. Employees working across borders need payroll in the right country, with the totalization agreement deciding where social security is paid. UK corporation tax runs at 25%, with a small profits rate of 19%. US-source dividends paid to a UK parent need the correct treaty paperwork, usually Form W-8BEN-E, to avoid default withholding of 30%.
Where the work usually sits
- 01
- Form 5471 for US shareholders of UK limited companies
- 02
- Form 5472 for foreign-owned US corporations and single-member LLCs
- 03
- Choice of entity before incorporating in either country
- 04
- Sales tax registration and state filings for UK sellers
- 05
- Bookkeeping, payroll and year-end accounts under both sets of rules
The forms this division files
Most of the work sits in a handful of returns and information forms. These are the ones we prepare most often for this group.
- Form W-8BEN-ECertificate of Foreign Status (Entities)
- Form 8833Treaty-Based Return Position Disclosure
- State ReturnsUS State Tax Returns for People Who Have Left
- TreatyThe US-UK Income Tax Treaty
Why US UK Tax Returns
The same people keep the file year after year, so elections, carryovers and treaty positions follow you from one return to the next.
One File
US and UK returns prepared in the same engagement and reconciled line by line.
Primary Sources
Every position traced to the Code, the treaty, IRS instructions or HMRC guidance.
Scope First
Returns, forms, years and fee agreed in writing before work begins.
The Same People
The team that files this year carries the elections and credits into the next.
Questions we are asked
I am American and run my business through a UK limited company. What does the IRS expect from me?
An annual Form 5471 attached to your personal return, reporting the company's accounts, ownership and transactions with you. The initial penalty for a missed form is $10,000 per year. You may also have income to report from the company's profits under the controlled foreign corporation rules, even if nothing was paid out. Your shares count towards Form 8938, and signing rights over the company's UK accounts put them on your FBAR.
I am British and set up a Delaware LLC that has not traded. Do I need to file anything?
Possibly. A US LLC wholly owned by one foreign person is treated as a corporation for the limited purpose of Form 5472, which is filed with a pro forma Form 1120. Money you put in to form or fund the company is a reportable transaction, so a dormant year is not always a nil year. The penalty for a missed form is $25,000. The state of formation has its own annual requirements.
Should I use a US corporation or an LLC for my American operations?
It depends on who the owners are and where the profits are going. A corporation is taxed in its own right in the US and is recognised as a company by HMRC, which keeps the two systems aligned. An LLC is flexible in the US but can be classified differently in the UK, which can leave a UK owner without full credit for US tax. The choice should be made before incorporation, as changing later can be a taxable event.
My company is in the UK. Do I have to charge US sales tax?
You may. There is no federal sales tax. Each state sets its own rules, and most now impose a collection duty on remote sellers once sales into the state pass a level set by that state, with no physical presence required. The income tax treaty does not cover state sales taxes. The answer depends on what you sell, where your customers are and how much you sell to each state.
Can my UK limited company be treated as transparent for US tax?
Often, yes. A UK private limited company can generally elect its US classification, so a single owner can have it disregarded and report its results directly, with Form 8858 replacing Form 5471. A public limited company cannot make the election. Transparency removes the controlled foreign corporation rules but can bring self-employment tax and other consequences, and the election has its own deadlines. It is an option to review, not a default.
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