Glossary

Form 8858

Form 8858 is the information return for U.S. persons who own a foreign disregarded entity or operate a foreign branch, reporting the entity's activity and financials.

How it works

U.S. persons who own a foreign disregarded entity or operate a foreign branch file Form 8858 with their return, reporting the entity’s income statement, balance sheet, and transactions. It is often required alongside Form 5471 or 8865 when a foreign corporation or partnership owns the disregarded entity. The penalty starts at 10,000 dollars per entity per year.

Why it matters

A single-member foreign company used for consulting or to hold property is a foreign disregarded entity for U.S. purposes, and the filing surprises most owners.

Related: Form 5471. Read more: Form 8858 requirements.

Guides that cover form 8858

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Definitions are general information, not legal advice, and may not reflect the most recent changes in law.

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