Setting up a business in France – Career Liberale visa

@BeeH — A C Corp. will allow you to get a salary that is conveniently claimed on your French tax return. Once again, if your salary is acquired from France, you will nevertheless need to fork out France profits tax and social costs. This will vastly simplify your French reporting specifications. As much as the company itself, you’ll just report you as an owner of shares (other than, of program your wage.) The passive cash flow will nonetheless want to be documented in France — no gain what so at any time. Unless you might be seeking to offset passive losses in the U.S., possibly from actual estate, it will just complicate your everyday living in France. Bottom line, the C Corp. vice the LLC taxed as an S Corp., will make your French tax reporting easier. Nevertheless not as very simple as just closing down store in the U.S. and working fully from France.

You also have the possibility to have your French firm be a branch of your U.S. C Corp. or vice versa.

As considerably as the 401K, they should really be in a position to stay intact, but we’ve had pretty a several posters, on the forum, who have had challenges with “the major fellas.” The solution is to transfer your account (s) to any of the “self-directed” firms — most will get expat customers. By the way, you ought to consider executing a “Roth Conversion Ladder.” Really a number of associates are actively transferring their traditional 401Ks and IRAs to Roth’s. You could possibly want to convert equally your solo 401K and IRA to a Roth IRA, if you’re not going to add in the long term. Once more, another way to simplify. I am executing this for my wife, for the moments right after I go. If all her profits is from SSA retirement and Roth IRA distributions, she won’t owe any cash flow tax to the U.S. or France (she’ll still have filing demands.)

As significantly as going your organization to France, because Emmanuel Macron has turn into President, he has instituted strategies to redomicile your present organization to France. My comprehending is that you have to request authorization, open up a new French company, then you have 28 times to transfer accounts and shut down your recent firm — after which you have to have to report completion. Perhaps not as clean as some jurisdictions, but doable. Of system, if you present LLC is domiciled in California, this choice will never fly — CA does not allow redomiciliation of providers in it can be jurisdiction. In this scenario, you can expect to just have to do it the previous way, by shuttering your present U.S. structures (at least on paper, it should really be invisible to your shoppers) and build new entities in France. You can do an “assignment” document to transfer all of you existing LLC’s income/belongings to your new entity (or potentially execute a sale among entities.)

You also could look at executing as a great deal of your transition in advance of your go as you can. Cheers, @255