Glossary

AC corporation (or C-corp) is a legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity. C- corporations, the most prevalent of corporations, are also subject to corporate income taxation. The taxing of profits from the business is at both corporate and personal levels, creating a double taxation situation.

Another type of business can be an S-Corporation which is suitable only for US residents as it allows them to avoid self-employment tax that can eat out approximately 15% of your income. But if you are a non-US resident, you cannot become a shareholder. The main benefit of this system is that such a business does not pay “double taxes”.

A limited liability partnership is similar to a limited liability company (LLC) in that all partners are granted limited liability protection. However, in some states, the partners in an LLP get less liability protection than in an LLC. LLP requirements vary from state to state.

Štandard of living by affording basic needs such as housing, food, healthcare, and more. The cost of living is often used to compare how expensive it is to live in one location compared to another and is also used as a big factor for people to determine where they want to be located in addition to cultural attractions, the job market, and other factors.

This is the default business structure. If you never select a business structure but operate your business, then you are considered a sole proprietorship. In a sole proprietorship, your business and personal assets and liabilities are not separated.

This is the business structure for two or more people that own a business together. There are various types of partnerships. In a limited partnership (LP) there is typically one partner (the general partner) who is exposed to personal liability while the other partners (the limited partners) enjoy limited liability. Limited liability partnerships (LLP) protect all partners from the debt of the business.

A business plan is a written document that describes in detail how a business—usually a startup—defines its objectives and how it is to go about achieving its goals. A business plan lays out a written roadmap for the firm from marketing, financial, and operational standpoints.

EINs are unique, nine-digit numbers issued by the Internal Revenue Service (IRS) and primarily used to report employment taxes. They may also be called federal tax ID numbers. Like social security numbers, they never expire and are never reissued to another business.

If you meet certain requirements, you may qualify for the foreign earned income exclusion, the foreign housing exclusion, and/or the foreign housing deduction. To claim these benefits, you must have foreign earned income, your tax home must be in a foreign country, and you must be one of the following:

1. A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year
2. A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year, or
3. A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.

If you’re an ex-pat business owner working in the US or abroad, you are still liable for self-employment taxes in the US, as they are your Social Security and Medicare contributions. This will depend on how your company is structured and where you are located. If you are a sole proprietorship (i.e., no business entity) or have a US-based business entity, you will most likely need to pay US FICA taxes.