Do I need to file business income and expenses

[AMSWISSINUK]

Hello,

I am the Managing Director of a business, an  LLC,  I founded with my father in Switzerland.  I have less than 3% of the business and an employment contract.  

As Managing Director I make all business decisions around the company and manage finances (with appropriate governance).

Do I file as an employee or do I need to also file business income and expenses.

Thanks, 

Charles

[DianeC958]

If the business was organized in the United States as long as your father filed a business tax return you do not need to.

As a part-owner of the business you should receive a form K-1 from the business reporting any income and expenses that need to be claimed on your personal tax return.

Link to How to enter a K-1 that I received

[AMSWISSINUK]

Dear Diane,

Thanks for the quick reply.

My father and I are both dual-nationals.  The business was set-up in Switzerland, not the US.   We do not create the form K-1 or even have it..  

I am paid from the business as an employee though income varies depending on how well the business does.

Can you let me know if that changes whether I need to file business income or not.

Kind regards,

Charles

[DianeC958 · Accepted solution]

If the business operates in the US then a US business tax return is required.  If the business does not operate in the US then no US return is required.  

You would just claim any income you receive from the business on your personal return.