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FINCEN and company address problem

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Alexmorgan

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Jun 7, 2023
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#1
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I asked alot of CPAs and Legal advisors regarding the fincen report that should be completed

As i expected there is a problem that gonna happen from this

In the report you need to put a real physical address in the report and this will lead to be taxed as a US based company thats means it wont be a disregarded entity anymore from tax wise

Is there anyone here who filled out the form and put a virtual address?
 
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#2
A virtual address can work as long as it is accepted by the bank. Often, they do not check it unless it is an address known to the bank or in general. You may risk that if you do not ask them first, you will have problems afterwards should they find out.
 
#3
JohnLocke said:
A virtual address can work as long as it is accepted by the bank. Often, they do not check it unless it is an address known to the bank or in general. You may risk that if you do not ask them first, you will have problems afterwards should they find out.
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Im meaning the new fincen UBO form

This is a serious more than banks and you will get fine 500$ per day if any wrong
 
#4
Alexmorgan said:
In the report you need to put a real physical address in the report and this will lead to be taxed as a US based company thats means it wont be a disregarded entity anymore from tax wise
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I'm not sure this is correct.

FinCEN doesn't really care about taxes. They care about things like money laundering. If they go after someone for money laundering, they might throw in tax evasion charges as well. But they aren't the federal tax authority; that's the IRS' job.

BOI information doesn't accept the tax status of an LLC under US law.

Most US LLCs don't pay tax, even when the owners live in the US and even if the LLC does business inside the US. It's when profit from the LLC becomes personal income that tax is due. But that tax isn't paid by the LLC, it's paid by the members of the LLC.
 
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#6
Sols said:
BOI information doesn't accept the tax status of an LLC under US law.
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The Board of Investment or Bureau of Investment is some Thailand & Pakistan specific right? it does not apply for the rest of us? Or what does BOI refer to?
 
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#8
Sols said:
I'm not sure this is correct.

FinCEN doesn't really care about taxes. They care about things like money laundering. If they go after someone for money laundering, they might throw in tax evasion charges as well. But they aren't the federal tax authority; that's the IRS' job.

BOI information doesn't accept the tax status of an LLC under US law.

Most US LLCs don't pay tax, even when the owners live in the US and even if the LLC does business inside the US. It's when profit from the LLC becomes personal income that tax is due. But that tax isn't paid by the LLC, it's paid by the members of the LLC.
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Yes its disregarded entity but you will be taxed if you have an official office in US

Which BOI report require us to have

So in order to fill the BOI you need to have the physical address and if you got physical address the IRS will tax you
 
#9
Alexmorgan said:
Yes its disregarded entity but you will be taxed if you have an official office in US

Which BOI report require us to have

So in order to fill the BOI you need to have the physical address and if you got physical address the IRS will tax you
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No, the BOI report only requires one to fill in a US address for the LLC, there is no requirement that it has to be an office or a "physical" address (whatever that is). It can't be the address of the registered agent though, but it can be a virtual address or any US address provided by a mail forwarding service.
When registering a US LLC one also has to provide a US address - it is the address used on the EIN, in the Articles of Organizantion etc. The same address should typically be used for BOI reporting (if BOI reporting turns out to be required at the end of current legal procedures).
Having such a US address does not lead to ETBUS or that the IRS will tax a US LLC. No law or rule with regards to taxation of US LLC has changed. And Fincen which manages BOI reporting doesn't handle tax anyway.

The address for the LLC in the BOI report is covered at the 4 min mark here:
 
#11
Alexmorgan said:
I asked alot of CPAs and Legal advisors regarding the fincen report that should be completed
Click to expand...
Is this a tax report? or about tax and legal stuff? why it's posted here?
 
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#12
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