Wyoming annual report assets, FBAR and 8938 while living abroad
Single-member Wyoming LLC (disregarded) whose only assets are contributed software and domain names, no physical presence beyond the registered agent. 1) The Wyoming annual report asks for the value of assets located and employed in Wyoming: how are contributed intangibles reported? 2) I live abroad and may hold a local bank account. If foreign accounts pass $10,000 combined, FBAR is due even with no return, correct? Does Form 8938 apply if no 1040 is filed? Anything else for a couple abroad?
Quick Answer:
1) For the Wyoming Annual Report, the "value of assets located and employed in Wyoming" is generally **zero** for your scenario. Since the software and domain names are intangible and you have no physical office or hardware in the state, they are not considered "located and employed" in Wyoming. You only pay the minimum $60 filing fee.
2) **FBAR (FinCEN 114):** Correct. If the aggregate balance of all foreign accounts exceeds $10,000 at any time during the calendar year, an FBAR is required regardless of whether you owe taxes or file a return.
3) **Form 8938:** Generally, if you are not required to file an income tax return (Form 1040) for the year, you are not required to file Form 8938, regardless of the value of your foreign assets.
**For a couple abroad:**
* **Form 5472:** As a foreign-owned single-member LLC, you must file Form 5472 and Form 1120 (pro forma) annually, even if no tax is due. Failure to file carries a **$25,000 penalty**.
* **Filing Status:** If one spouse is a Non-Resident Alien, consider if a Section 6013(g) election to file jointly is beneficial.
* **State Taxes:** Wyoming has no state income tax, but ensure your host country doesn't tax the LLC as a local entity.
Note: This answer is provided for convenience only. It is important that you speak to a CPA about your individual tax situation.
