Tuesday, February 21, 2023

US Tax Factors When Forming a Mexican Corporation

 There are two main types of Mexican corporations.  Both are taxed in the same way in Mexico but only when  of those two are  eligible for often advantageous tax treat on your US tax return if the proper election is made for US tax purposes. That US tax election must be made with the IRS within a certain time period after your Mexican corporation is formed.  If you do not make the election in that period making it later may cause you to pay unnecessary US and Mexico income taxes.

The two primary types of Mexico corporations are (a) Sociedad Anonima or (2) Sociedad de Responsabilidad Limitada.

We can help you chose the best type of Mexico corporation for your Mexico business or real estate ownership or rental property.  This of course depends on the net profit you project the corporation to make. We can also help you file the election  (if you have the correct type of corporation in Mexico) with the IRS which will allow you to take a tax credit on your personal US return for taxes paid by the corporation in Mexico. That tax credit will reduce your US taxes you might have to pay on that corporate income.

We can help you chose the best type of Mexico corporation to achieve the optimum savings on your US tax return.  Email US to set up a mini- consultation before you form your Mexico corporation. CONTACT US HERE




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