It was very informative. I got answers to my questions. However, if I establish a LLC with my brother (we are foreigners), will the LLC have to pay federal taxes?
@JasonDKnott
2 жыл бұрын
This depends upon the activities of the LLC and its owners. If the LLC is engaged in U.S. trade or business and has U.S. source effectively connected income, it will be subject to taxes. If the U.S. LLC earns U.S. source FDAP income, the FDAP income will be subject to U.S. withholding taxes before being allocated to the non-U.S. partners.
@tomekabcd662
2 жыл бұрын
@@JasonDKnott My (future) LLC will perform its services from Europe, no employees will work in the United States, only US customers (INC LCC and other companies) will be involved. (I will give them W-9). Thank you for your answer.
@gabrieljenik
Жыл бұрын
W8-Ben instructions says "You must give Form W-8BEN to the withholding agent or payer if you are a nonresident alien who is the beneficial owner of an amount subject to withholding"... Wouldn't this apply in this case as well? A NRA partner isn't a Beneficial Owner of a partnership? If so, wouldn't a W8-ben for each member apply? Thanks
@charangudla451
2 ай бұрын
What if one member is in usa on h1b and another in India?
@gabrieljenik
2 жыл бұрын
Nice video. So if providing services through a MM LLC (same case as your video), would some money be withholded?
@gabrieljenik
2 жыл бұрын
I guess not as W-9 is used to claim exemption from backup withholding if you are a U.S. exempt payee. right?
@JasonDKnott
2 жыл бұрын
If you have a U.S. LLC that is multi member, it is by default a domestic partnership. So any payments of U.S. source income into the LLC will not be subject to nonresident withholding, because it is a domestic partnership. However, any withholding obligation now falls on the multi member LLC itself. If the LLC has non-U.S. partners and is allocating either U.S. source FDAP income, or U.S. source ECI, then the LLC now has to withhold the tax and do the reporting.
@gabrieljenik
2 жыл бұрын
@@JasonDKnott Thanks! W-9 is for requesting the payer to not withhold, right?
@hammadzeb9853
2 жыл бұрын
Please id appreciate ive been doing my research but couldn't find anything.. Im a non us citizen but i live in usa, i formed my llc which is single member llc.. But someone came on board and wanted to do business with me so we made another llc. We are total of a 3 partners 2 people are us citizens one of them is 34% partner another one is 33% and the third partner is my llc 33%.. We made the account and im stuck on amazon tax interview. Im not sure which form to fill and what options to choose
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