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WY LLC non-US person non-US resident no US operations/income

Hi, I have a couple of questions on my situation:

  • Sole member of a WY LLC
  • Non-US person
  • Non-US resident
  • No US operations, income, office or any assets
  • Country where business activity is has tax treaty with the USA.

In this case:

  • Am I liable to pay any US taxes?
  • And if not, do I have to file to the IRS at all?

Then I found a great posting on taxforum.us, for which the expert answer was:

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Your LLC is not taxable entity. Income /loss is passed through to you a member, and you pay taxes as individual. You, as a non-US resident, are not liable for US income tax for income derived outside of the US and passive income derived from the US, such as interest income, dividend income and capital gains. Therefore, you are not liable for any US income taxes, when your LLC conducts business outside of US. If an US LLC trades with US companies from outside of US, such LLC does not conduct business in US. Only presence of permanent establishments of the LLC in US, such as offices, warehouses, etc., allows to classify such LLC as a LLC conducting business in US. No income tax return required as long as your LLC conducts a trade or business outside of the US, and you are are non-US residents for income tax purposes.

Could anyone validate whether this applies?

Many thanks.

Reply to
mslabre
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Depends. Do you have any USA sourced income? Since your LLC is apparently based in the US, if it earns money you probably are liable for taxes in the USA.

If not, you don't have to file. Where do you live? How much money does your LLC take in? What is the income derived from? Where are its customers? Where do they send their money to pay for whatever they get from the LLC?

The article is interesting, but may not be applicable to you. An LLC can be taxed as a pass-through entity, as a C-corporation or as an S-corporation depending on how it was set up. How was yours set up?

Unfortunately you have left out a lot of relevant information, and the issue is more complicated than you realize.

Reply to
Stuart A. Bronstein

Hi Stu,thanks for that. More details below.

No

Philippines (has a tax treaty with the US)

Nothing yet, but I expect $200,000/year within six months from now.

Consultancy and advice on finance and investments.

Hong Kong and Philippines

Account in Hong Kong.

Set it up as LLC, disregarded entity, not elected to report as corporation.

Do you think I'm liable for US taxes, or even have to file at all?

Thanks.

Reply to
Marcelo Labre

Based on those details my guess is that you aren't liable for US taxes, and don't have to file. But I don't do returns, so others around here may be able to give you better information.

In any case, for the amount of money you are talking about, it would be good to talk to your own CPA or tax lawyer, in person, who can look at any relevant papers and ask you and necessary questions, just to be certain.

Reply to
Stuart A. Bronstein

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