Advantages of using an S. de R.L :
1. Allows losses and profits of the corporation to flow through to your personal US return (avoids double taxation)
2. Allows you to claim a foreign tax credit on your US return for all Mexican income taxes paid by your corporation in Mexico.
3. Avoids the new US GILTI tax which causes owners of Controlled Foreign Corporations to have to pay taxes on part of the corporations profits even if they are not distributed to you.
We can help you structure your Mexican business or real estate in the optimum manner for your US tax return and to save taxes. Please email us with your questions or to set up a planning session. We can also then do the return. EMAIL US We have been assisting US Gringos in Mexico with their US tax returns for over 20 years.