Share this content

UK LLP - US member

UK LLP - US member

I need to understand the transparencey on a UK LLP as well as a UK limited company where I tick the box.  I need to set up a UK entity.  I would like for the profits and losses of the UK entity to flow through to the underlying member(s) some of whom will be U.S. residents.  My question is will the losses from a UK LLP flow though to the "U.S resident" members?

Also if I set up a Limited Company and "tick the box" will the profits and losses flow through the the U.S. resident members. Under this structure the UK residents will not get the benefit of flow through profits and losses but will pay a corporate tax?

Thank You



Please login or register to join the discussion.

06th Dec 2012 23:03

Tom - A UK LLP is a body corporate. For UK tax purposes it is taxed as if it were a partnership, but it is not.

For US purposes it is a corporation. If you want the same treatment in both jurisdictions a check the box election can be made on Form 8832.

Annual Forms 8858, K-1s, Forms 8938 and FBAR filing would possibly all be obligatory.

You would also want to check the State tax treatment of any such entity.

One would need to review and decide on an appropriate accounting period that would be acceptable in the US and probably accelerate payment of UK tax by the members to make such a structure more efficient in the US.


David Treitel | Managing Director | American Tax Returns Ltd

[email protected]






Thanks (0)
Share this content