I run a Canadian Corp and a US LLC (pass through entity). I'm a US citizen. The LLC owns the software, and licenses it in turn to the Canco.
I'm filing my year ends and just made a transfer from Canco to USA for its annual license fee. I want to account for this properly tax-wise. I am assuming this requires more reporting than an everyday expense. Since I can't be an employee, and this is a legit licensing expense, I use this as the primary way to move profits to home.
International tax accountants and lawyers are outside my price range. Whatever you say here I completely understand is not to be taken as legal advice. I just want to cover my bases the best I can.
For doing this all myself, I think I'm doing OK. I've done the FBAR banking declarations, IRS Form 5471 (yet to hear back...), letter to maintain records outside Canada... and the legal entities are all properly balanced accounting wise in Xero.
Looking for any gotchas some smart people here might be able to point out.
Thank you
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If anyone is wondering why I am incorporated in Canada - it's because I do a lot of merchant processing aggregation so I need a banking/legal presence.
I'm filing my year ends and just made a transfer from Canco to USA for its annual license fee. I want to account for this properly tax-wise. I am assuming this requires more reporting than an everyday expense. Since I can't be an employee, and this is a legit licensing expense, I use this as the primary way to move profits to home.
International tax accountants and lawyers are outside my price range. Whatever you say here I completely understand is not to be taken as legal advice. I just want to cover my bases the best I can.
For doing this all myself, I think I'm doing OK. I've done the FBAR banking declarations, IRS Form 5471 (yet to hear back...), letter to maintain records outside Canada... and the legal entities are all properly balanced accounting wise in Xero.
Looking for any gotchas some smart people here might be able to point out.
Thank you
----- If anyone is wondering why I am incorporated in Canada - it's because I do a lot of merchant processing aggregation so I need a banking/legal presence.