3 ms·
One does not simply avoid paying taxes with an LLC unless your gross income is minute, tax deductible expenses are huge, or your losses are huge. IT IS NOT SOME
by nszceta 4y ago
One does not simply avoid paying taxes with an LLC unless your gross income is minute, tax deductible expenses are huge, or your losses are huge. IT IS NOT SOME MAGICAL LOOPHOLE. It is hard enough to stay afloat as a business without misinformation like this being spread.
- csomar 4y agoIf you have a US LLC without US income, you are disregarded by the IRS. The tricky thing is getting a bank account without an EIN, however. But if you can do that, you are pretty much set.
- nszceta 4y agoI'm struggling to understand why avoiding an EIN ever helps avoid taxation. It doesn't seem to be a relevant matter. 1. As a non resident alien, you are subject to US tax on business income if you are “engaged in a trade or business in the United States“, short “ETBUS”. 2. You are ETBUS only if two things are true: (i) You have at least one “dependent agent” in the US. Dependent agents are employees or companies that work almost exclusively for you. And (ii) that dependent agent does something substantial to further your business in the US. Purely administrative jobs are not included under this rule. 3. Finally, if you can benefit from an applicable tax treaty, then you’re only subject to US tax if (in addition to being ETBUS) you operate in the US through a “permanent establishment” (e.g. an office or other fixed place of business). If you don’t meet those conditions, you are not (automatically) subject to US tax on your business. Even if the LLC generates income in the US, by offering services or selling products into the US, that income is not taxed in the US. Source: https://globalisationguide.org/us-llc-non-resident/ https://globalisationguide.org/us-llc-non-resident/