IRS Form 5472 is essential for foreign-owned U.S. businesses. Form 5472 is a requirement for entities that are at least 25% foreign-owned and the failure to file can result in penalties starting at $25,000 per form. The Inflation Reduction Act is likely to increase IRS scrutiny of these forms significantly so it is important to stay updated.

The Corporate Transparency Act (CTA) mandates that LLCs and Corporations in the U.S. report detailed information about their beneficial owners and company applicants to FinCEN. This includes the full legal name, date of birth, residential or business address, and an identifying number from an acceptable ID document (such as a driver's license or passport), along with an image of the document.

Electing S Corporation status can offer significant tax benefits for small businesses by enabling pass-through taxation, avoiding double taxation on corporate income. S Corps provide tax savings on self-employment income and allow deductible business expenses. However, they come with strict eligibility requirements, administrative complexities, and scrutiny over reasonable compensation.