pk
Level 15
Level 15

Business & farm

@Gordo5 , I am lost as to why you are considering your entity / sole proprietorship to be  a Foreign Disregarded Entity.    Generally,  an FDE is a foreign entity  that does business in the USA.   Because they are not a US person / entity, how do you tax them.  That is where  FDE allows the partner/ branch in the USA to be taxed  on US sourced income either as a Schedule-C or as  C-Corp.

Your case is no different than a self-employed  US person earning in a foreign land.  Thus  you use Schedule-C and COGS etc. to work out your  net income to be taxed by the USA.  You are also liable  for SECA  (  FICA times  2 ).   Any taxes on income by the Foreign taxing authority  may be eligible for  Foreign Earned Income Exclusion  or  Foreign Tax Credit  / deduction ( with SALT  limits ).

 

Does this make sense ?

 

Is there more I can do for you ?