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Without the right strategy, quiet inefficiency and hidden exposure can compound as the business grows, leading to:
Navigate foreign-owned reporting obligations, withholding exposure, and international tax coordination more strategically.
Strengthen reporting alignment and operational visibility across jurisdictions through ongoing accounting support and advisory guidance.
Align ownership, operational structure, and long-term tax strategy around scalable international growth.
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"We came to Lodder CPA at a critical point in our company’s growth. Our business was scaling quickly, and we needed reliable, strategic tax support, especially with cross-border considerations and entity structuring.
Since working with Lodder, we’ve gained peace of mind and confidence that our taxes are handled properly.
If another founder asked me about Lodder, I’d tell them this: If you’re serious about your business, don’t cut corners with your accounting. Lodder isn’t the cheapest option, but they are worth it.
Jon Persson
Co-Founder
Find answers to frequently asked questions about our services and international taxes.
This income is included on your U.S. tax return. It’s also possible that this income is taxable in the foreign country. You would need to determine the tax implications with your tax professionals in the U.S. and abroad. If there is an income tax liability in the foreign country, then you may be able to obtain a foreign tax credit on the U.S. return to avoid double taxation.
Possibly. However, there may be anti-tax deferral provisions such as Global Intangible Low-Taxed Income (GILTI) that could apply that cause you to pay current tax on this non-U.S. income. You should seek tax advice to avoid onerous tax provisions.
No. GILTI applies to corporations who would otherwise be able to defer U.S. corporate income tax until a dividend is paid. Income from the partnerships or pass-through entities is includable on the U.S. company return in the year it is earned.
Under current law, there is no tax since the U.S. corporation would obtain a 100% dividend deduction.
Yes. U.S. corporations benefit from tax incentives such as deducting a portion of foreign-derived intangible income (FDII), linked to intangible assets held domestically. Additionally, the Interest Charge Domestic International Sales Corporation (IC-DISC) provides substantial tax savings for exporting U.S. products. Unlike tax shelters, IC-DISC facilitates permanent tax savings by transferring income through export sales commissions.
Since working with Lodder, we've gained peace of mind and confidence that our taxes are handled properly.
Saved tens of thousands annually through a more efficient cross-border tImproved financial visibility and gained confidence managing a U.S. business with international ownership.ax strategy.
Provided cross-border tax planning, compliance support, and integrated accounting oversight across jurisdictions.
Foreign-owned U.S. entities may face additional IRS filing requirements depending on ownership structure, entity type, and international activity. These obligations often include foreign-owned entity reporting, withholding considerations, and cross-border coordination across jurisdictions.
Form 5472 is commonly required for foreign-owned U.S. businesses that engage in reportable transactions with foreign related parties. Filing requirements can become complex depending on ownership structure, entity activity, and international operations.
Yes. Inefficient ownership or entity structures can create unnecessary tax exposure, withholding obligations, operational friction, and long-term scalability issues if not planned properly from the beginning.
Distributions from a U.S. business to foreign owners can trigger withholding tax and other international tax implications depending on the structure, tax treaties, and how funds move across jurisdictions.
Cross-border businesses often involve multiple accountants, legal advisors, payroll providers, and financial professionals across jurisdictions. Coordinated planning helps reduce reporting gaps, conflicting strategies, and unnecessary inefficiencies.
Late or incorrect foreign-owned reporting can result in significant penalties and increased IRS scrutiny. Proactive planning and ongoing oversight help reduce the risk of costly filing issues as complexity grows.
Yes. Lodder CPA regularly works alongside existing U.S. and international accountants, legal counsel, banking partners, and other advisors to help maintain stronger alignment across the broader cross-border strategy.
Reduce unnecessary reporting risk and support more scalable long-term U.S. operations through a structure aligned with foreign ownership complexity.
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