Asked in Business Law and Tax Law

Q: Taxation of an LLC owned by non USA residents


two foreigners I mean non USA residents or citizens formed an LLC in the USA, managed by a manager third person non USA resident and citizen as well. they issued an international EIN for the LLC in order to open a Bank account outside the USA. For the first two years the LLC will not have any activity within the USA but only abroad, so my question is if the members or the LLC should file tax return with IRS or only to their home countries (the members). LLC has not passive income but active from commercial activities.

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1 Lawyer Answer
Eric Steven Day
Eric Steven Day
  • Tax Law Lawyer
  • Henderson, NV

A: If the income is earned within the U.S., the taxpayers always have to file a US tax return to pay taxes on the income that they generate in the U.S. They may also have to file the income in the foreign country that they reside in, but they will likely get a credit for any income taxes that they pay to the U.S. on the same income. A lot of this depends on the country and whether the U.S. has any treaties with the foreign country.

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