Accidental American wanting to start company with friend

Note that when opening new bank accounts you will be asked if you are a US citizen, and if so will be asked to complete an IRS form W4(?), as financial institutions are required to report income of USCs to the IRS. When I applied for my UK pension a couple of years ago from my old  UK employer I was also asked if I was a USC.

  This is where @nozenhere is going to have to be careful.  Banks will ask you if you are American and report that to the IRS.  Especially when applying for a business bank account and doing all the other paperwork for creating a limited company, I would imagine you'll be asked multiple times what your nationality is.  It's one thing to mislead HSBC about your nationality for a joint current account, quite another to do the same as a company director.   As a US citizen, I've gone through the process of starting and running a UK limited company and there were many, many times where I had to detail all the things about my American status. 

The child of the OP is NOT an American citizen. He cannot be claimed as a tax deduction.

https://uk.usembassy.gov/u-s-citizen-services/birth/transition-requirements/

A child born outside of the United States and in wedlock to a U.S. citizen parent and a non U.S. citizen parent, may acquire U.S. citizenship at birth if the U.S. citizen parent has been physically present in the United States or one of its outlying possessions for a period of five years, two of which were after the age of fourteen.  The U.S. citizen parent must be the genetic or the gestational parent, and the legal parent of the child under local law at the time and place of the child’s birth.

Excellent, thanks for that.

  This is where @nozenhere is going to have to be careful.  Banks will ask you if you are American and report that to the IRS.  Especially when applying for a business bank account and doing all the other paperwork for creating a limited company, I would imagine you'll be asked multiple times what your nationality is.  It's one thing to mislead HSBC about your nationality for a joint current account, quite another to do the same as a company director.   As a US citizen, I've gone through the process of starting and running a UK limited company and there were many, many times where I had to detail all the things about my American status.

This is exactly why my wife would be the owner of the business.

This is exactly why my wife would be the owner of the business.

You should talk to an accountant and a lawyer. If you seriously want to start a business you’ll need both anyway.


Sent from my iPhone using Tapatalk Pro