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Disclaimer, I'm not an accountant but I can act like I know something about accounting :) You have a multi-member LLC. Any money received as revenue, and any m

Disclaimer, I'm not an accountant but I can act like I know something about accounting :) You have a multi-member LLC. Any money received as revenue, and any money spent as an expenditure, must/should be reported on the LLC's taxes. Some LLCs pay taxes as if it was an individual human, but since there three of you, I believe the LLC entity would be taxed first. If you are receiving an income (w2 or 1099) from the LLC, then I believe you must pay taxes on that too, either in the USA or in your home country or possibly both if you are really unlucky. If you aren't receiving an income from the LLC, then you personally are fine. You presumably would only be taxed if you sold your shares in the LLC to someone else. Also, I think you might have to collect sales tax in some jurisdictions. It's pretty complicated, but the statistics show that you don'r get audited unless you are making over maybe 100k, or commit some seriously obvious fault like claiming 1 million USD in expenditures on food every year :)

keplerrocks 8y ago
I think the LLC is not taxed, but we as owners /shareholders do. https://www.nolo.com/legal-encyclopedia/how-llcs-are-taxed-29675.html https://www.nolo.com/legal-encyclopedia/how-llcs-are-taxed-2... My question was if I should pay income tax. Foreign people should pay this tax if the income "effectively connected" to the US. I wondered if selling apps in the apple app store constitute "effectively connected income"
- anoncoward111 8y ago
  Hmmm ok, so then based on that article and your opinion of the situation, it's debatable if you owe personal income tax on your share of the yearly income, which let's say is 33%. Is there a way to make sure you are only paying taxes on the yearly profit and not revenue? 100k in revenue is nothing if the business had 100k in expenses that year. What state is the LLC registered in? That will affect if you owe state taxes too, even if you live abroad. I'm sure if the income was large enough, the IRS would send you an audit saying you owe xyz +5% late penalty. If it's small and you have no physical address here and the income is entirely online, then perhaps you owe 0% tax. Confusing to me, really, as I've only ever worked W2, 1099, and cap gains for income

keplerrocks 8y ago

I think the LLC is not taxed, but we as owners /shareholders do. https://www.nolo.com/legal-encyclopedia/how-llcs-are-taxed-29675.html https://www.nolo.com/legal-encyclopedia/how-llcs-are-taxed-2... My question was if I should pay income tax. Foreign people should pay this tax if the income "effectively connected" to the US. I wondered if selling apps in the apple app store constitute "effectively connected income"

anoncoward111 8y ago
Hmmm ok, so then based on that article and your opinion of the situation, it's debatable if you owe personal income tax on your share of the yearly income, which let's say is 33%. Is there a way to make sure you are only paying taxes on the yearly profit and not revenue? 100k in revenue is nothing if the business had 100k in expenses that year. What state is the LLC registered in? That will affect if you owe state taxes too, even if you live abroad. I'm sure if the income was large enough, the IRS would send you an audit saying you owe xyz +5% late penalty. If it's small and you have no physical address here and the income is entirely online, then perhaps you owe 0% tax. Confusing to me, really, as I've only ever worked W2, 1099, and cap gains for income