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Topic: Tax for US Single Member LLC Dual US/UK Citizen splitting time between US/UK?  (Read 949 times)

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    • Cail Photography, Inc.
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  • Joined: Nov 2005
  • Location: Cailfornia
Hello all!  :D

My situation: I'm a dual UK/US citizen (dual passport) currently living in California. I have a Texas-based single member LLC for my consulting business (lived in Austin for 3 years). As of January 1st, I plan to pay myself W-2 (instead of just letting the income fall through), because it will enable me to get a better mortgage.

I would like to start living part time in York, to be near my UK family. I will probably spend the better-weather months in England, and the rest of my time in CA. I don't plan on moving permanently to the UK at any time.

All pay will be from my US LLC to my US bank account; I am definitely self-employed (according to my US accountant) by US standards. I don't plan on moving until at least May of next year.

I've spent the better part of my day reading through all 40 pages of these "US - UK Taxes" threads, educating myself as best possible. My situation seems closets to Lizzit's comment "Options 2 & 3" here: http://talk.uk-yankee.com/index.php?topic=16586.0 [nofollow]

My questions include:
- Does being a W-2 employee of my own LLC help/hurt me?
- I'm a UK citizen, so how do I handle health insurance while in the UK?
- What if I find new UK clients while I am in the UK?
- Are there any applicable tax deductions for overseas trips?
- Will it hurt if I rent my current US residence (and live with family when in CA)?

I realize these are very specific questions; any advise will be much appreciated. Also, if anyone can recommend someone I can speak with about these issues while still in the US, please provide that referral.

Taxes scare me to death, so I want to be sure I do this right.

Thanks!

Victoria
~Victoria~


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Just because you are self-employed from a US perspective has zero bearing on UK law.

Generally the UK has historically regarded an LLC as a company, so if it pays a salary than that would be taxable in the UK if the work is done in the UK.

There is some danger that the company (the LLC) might become UK resident so you would need a UK corporate expert.  There are of course other many issues such as VAT registration, filing of UK and US returns etc to address.

 


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