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.
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.
1 user found this answer helpful
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.