Tax
CFC rules
Also known as Controlled foreign corporation rules
Controlled foreign corporation rules allow a country to tax its residents on the undistributed profits of foreign companies they control, preventing indefinite deferral of tax by leaving profit offshore. Most developed countries operate some form of CFC regime.
In plain terms: Rules that tax you at home on profits sitting in your foreign company.
Why it matters
The mechanism by which a founder's home country reaches a US LLC's retained profit. It is why 'the money is still in the company' is often not an answer, and why home-country advice matters at least as much as US advice.
Read the full guideInternational founders