United States Limited Liability Companies (LLCs)

In the autumn of 2008 the United States Inland Revenue Service circulated guidelines relating to the requirements as to who would be liable to file the revised Form TDF90-22.1. This form usually referred to as the “report of foreign bank and financial accounts” or just plainly “FBAR”.

The report requires disclosure by US persons having a financial interest in, authority in or signatory power over any foreign financial accounts in which the value of such accounts exceeds $10,000 (10,000 US Dollars) in any calendar year.

At this time the definition of a “US Person” included a resident of the United States or any person in the United States and undertaking business there.

The United States Inland Revenue Service has since modified its original definition of a “US Person” to relate only to a citizen or resident of the United States, a domestic corporation, a domestic trust or estate and a domestic partnership.

The new description from the United States Inland Revenue Service means that sole members of a US LLC do not fall into the category of a “US Person” and accordingly there is no obligation for the member to file the aforementioned “FBAR” form, nor to reveal the identity of any ultimate beneficial ownership.