Do you want to grow your business and pay no taxes without spending hours and hours learning how everything works on RUclips? Get A Free one-on-one 30-minute strategic Consultation - www.jamesbakercpa.com/schedule
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
Thank you so much James Baker. In this video you provide us lots of information, this video is eye opener for many non resident US LLC owners. Thank you once again.
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
Hey! Publication 519 (page19) says: "All profits or losses from U.S. sources that are from the operation of a business in the United States are effectively connected with a trade or business in the United States. For example, profit from the sale in the United States of inventory property purchased either in this country or in a foreign country is effectively connected trade or business income...". This text is also appears at irs's ECI explaining page. Can you comment on this? Seems like selling physical goods to US customers IS ECI.
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
Really appreciate all your help and information James! One question though... Suppose I have an LLC in the US as a non-resident and my clients are US companies, if I receive a payment in my online bank account from them do I need to pay income taxes annualy? I will not have any contract with them just a payment agreement for the services provided. Thanks so much!
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
Hi, just to clarify, me and my brother are the owners of a registered LLC in Wyoming and we are Non US Residents (foreigners ) living in Sri Lanka. Are we supposed to file for any taxes ( sales tax, etc) in the USA ? . We provide services from outside of the US. We are only simply registered in the US . would appreciate the reply thanks
Pretty sure you have to be a tax resident of a country with an IRS tax treaty and need fill out a W-8BEN-E to avoid withholding taxes. The IRS will share this info with your country of residence. SO you have to pay taxes in the country that you reside. If you reside in a zero tax country or any other country with no IRS tax treaty you will not qualify for zero withholding taxes. Happy to hear I'm wrong on this.
Withholding taxes only apply on FDAP income. So that's dividends, interest, rental income and services performed inside the US. If the amounts being paid to a NR are not FDAP thenthere is no withholding
@@JamesBakerCPA Great content! Btw, apart on dividends, should foreigner also subject to Tax withholding on gross proceed for security sold even with no capital gains?
As A Non Us Citizen myself if i hire a registered Agent would that act cause me to pay US income tax?and Also if i use a services like Bizee to open an LLC + Bank accounts and other Services to have US address as well would this mean i have to pay US taxes? The BUsiness i have in question is Amazon FBA wholesale . im curious to hear your thoughts on this :)
Currently setting up a digital product store in South Africa. Seems the only way to accept payment is by setting up an US LLC via Stripe Atlas. But I’m really struggling to understand what I will need to do tax wise as they I will need to complete tax returns in the US. Welp. Feel so out of my depth here. Could you help?
Hı. I have little question ; İ m a non us citizen,I will open a LLC in 2024 and ı m a software developer,if earn money from my Llc such as online marketing. I have to pay my tax directly to IRS but you said if your sales came from international the LLC wont pay any tax..is that correct?
Hi James, incredible explanation, I am still missing one part, if I am not resident, I have my LLC and also a personal U.S banking account, what tax should I pay if I do payments from my LLC account to my personal U.S banking account? that is my question. Thank you very much
I am not citizen and non resident. I want to open my llc in Wyoming but my problem is I want to move to South Korea and receive content creation collaboration payment from Korean entities. Would this be taxed by Korean government due to any agreement between USA and Korea government or not. Thank you
so if you'r a foreign LLC owner who operates a dropshipping ecom, you are not required to pay tax even if the vast majority of your customers are USA resident
Hi, I plan on getting a us llc set up for Amazon ecommerce (non resident- Dubai) Dubai has no tax treaty with US and I believe witholding is 30% for US. Because this will be entirely remote. No physical address, only virtual, Payoneer for online banking, no employees in us. Will this be considered for 0% witholding? How can I apply for no witholding tax on the income I take out for myself ? Is there any way you'd recommend... thank you
Hello James , thanks for the valuable info you sharing, I set up LLC In Wyoing activity Social Media and wanna do business on Real Estate industry buying Lands and engaging in wholesale Realestate in different States. - Is it a problem for me if doing different activity with the LLC as for now I want to Only do RealEstate business with the LLC. - What are the Taxes I need to file for the LLC. - FERPTA will be applied when selling any property as foreigner , what file should i submit.
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
I made non-resident llc in wyoming. I do business of exporting goods from us to other country. also the payments are comming from other country. Do I need to pay federal tax in the US?
Hi James, a very good niche for u is software developers, like me, I live in Brazil and i code for US/CAN based companies, does this activity is taxable ? Also so far I have a “Brazilian llc” however I’m looking to decrease my taxes, by opening an llc in America, so far I’m paying 9% on my income, and I’m looking to pay 0 😅
Hey, firstly do you offer llc registration as an agent representative? Secondly as an e-commerce site, with dual citizenships how do i choose which country to pay the other tax? (Huge difference between both of them)
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
I am a foreigner who does not reside in the USA. I run an online travel agency. I do not organize tours in the USA and I have no customers in the USA. In this case, to whom will I pay taxes
So if you have an e-commerce business you should pay taxes in the US as it says on their website in the Effectively Connected Income (ECI) "If you own and operate a business in the United States selling services, products, or merchandise, you are, with certain exceptions, engaged in a trade or business in the United States. For example, profit from the sale in the United States of inventory property purchased either in this country or in a foreign country is effectively connected trade or business income."
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
Amazing content. You're absolutely right that there's no dedicated content for non-residents. I wanted to ask if I get a US LLC, which is not owned by a single member but by a foreign company (parent company) will I be able to apply for US business credit cards? Also will I need to get ITIN if suppose my UAE company owns the US LLC? THANKS 😊
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
I'm a video production company in Canada and want to start selling my service in U.S. If I register an LLC in one of the tax free state, as non U.S resident and then seek business from states other than my registered state. Do i have to charge tax on my invoices to the clients in U.S? Also since I won't be there in person in any state, I will be hiring local photographers or videographers to go on site and film and photograph for me, does that count as employee and I'm subject to tax? Because I'll probably be paying the contractor via PayPal. Would appreciate the insight. Thanks
My LLC is a foreign owned disregarded company with IT staffing nature of business operating from India with no physical presence yet in USA, doesn't have direct W2 employees or subcontractors but have some payments from companies as referral fee. Can I avoid taxes?
Hi great content as always but I've a question is that what if foreign LLC owner want to sell the company from whatever valuation. Will they get taxes after the payout?
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
what if you are a US citizen and you have companies in multiple states can you pay 0% tax if you establish a parent company in ireland (let's say) where there's no or very little tax?
Hi, Great content me and my brother are the owner of a registered LLC in Texas and we are non-US residents (foreigners ) living in Asia. Are we liable to pay any taxes on our personal income (profit) in the USA ?. We provide services from outside of the US. We are only simply registered in the US Texas. would appreciate the reply thanks
Hello James, I was told by an accountant that I need to file federal income tax on my individual profits? I would highly appreciate it if you can provide some guidance on this. Please
I have a print on demand store running from germany but selling to the us market only. my fulfillment provider is located in the us. do i need to pay us taxes anyway?
I do have a big question though, if I set up a server in the US, and setup an online service (an app for instance), I'm not charging for the software I coded but will be charging for the value provided by the app. Where would be the location of activity then? Is that taxable income from the US?
Excelente contenido James. Tengo una pregunta: Si mi empresa es una LLC registrada en USA, qué comprobante de pago debo entregarle a un cliente de Panamá, que paga con transferencia bancaria a la cuenta de USA de mi LLC, para que le sirva en su declaración de impuestos de Panamá y pueda registrar los pago que le hace a mi empresa como un gasto?
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
If you have one partner that is in the US and two partners that are foreign, do the foreign partners need to file a 1040-NR and pay taxes on the income from the K-1?
But James I say, what if I have a USA SSN (because I legally worked in US for a short period) and have a single-member LLC selling on amazon and shopify? Still zero taxes? Hope you are not gonna charge me $500 to answer this question :)) Thanks a lot for doing this btw, it's really hard to find anyone who is really knowledgeable in this topic.
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
I am from Pakistan. I have an LLC in Wyoming. On that LLC, i have a trademark and i sell on Amazon. How much tax will i have to pay? How to avoid the taxes?
I have an LLC registered in June 2023 and its an online tour agency, when am I supposed to file taxes and which form do I need? Many comapnies I deal with in the US also ask me to fill W9 form is it ok to fill it?
Una LLC che opera sia negli Stati Uniti che all'estero può pagare le tasse solo sul reddito interno (immobiliare) e non su quello guadagnato in tutto il mondo?
please guide me..i made a non US resident two member LLC in Virginia last year and i ll be doing amazon whole sale only..Will i be taxed for state income tax?.. i am worried if this is true.. i am planning to move my llc to some other states where there is no state income tax..what do you suggest?
Im foreign owner of an LLC, we work with online courses and we sell mainly to US, revenue over 250k year for US clients. So I can still pay no taxes? We dont have any physical presence in the US, no employes and nothing like that
@@smartmoon786please guide me..i made a non US resident two member LLC in Virginia last year and i ll be doing amazon whole sale only..Will i be taxed for state income tax?.. i am worried if this is true.. i am planning to move my llc to some other states where there is no state income tax..what do you suggest?
@@mousamkonwar12please guide me..i made a non US resident two member LLC in Virginia last year and i ll be doing amazon whole sale only..Will i be taxed for state income tax?.. i am worried if this is true.. i am planning to move my llc to some other states where there is no state income tax..what do you suggest?
Do you want to grow your business and pay no taxes without spending hours and hours learning how everything works on RUclips?
Get A Free one-on-one 30-minute strategic Consultation - www.jamesbakercpa.com/schedule
How can ı e mail you ? Because of my english speaking not high level😂 to take an interwiev
100% going to reach out
Where is the link to the memo referenced in the video?
You speak to me directly
You’re our guy! We have a call setup on Thursday.
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax
Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on
or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements
under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
Thank you so much James Baker. In this video you provide us lots of information, this video is eye opener for many non resident US LLC owners. Thank you once again.
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax
Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on
or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements
under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
Hey! Publication 519 (page19) says: "All profits or losses from U.S. sources that are from the operation of a business in the United States are effectively connected with a trade or business in the United States. For example, profit from the sale in the United States of inventory property purchased either in this country or in a foreign country is effectively connected trade or business income...". This text is also appears at irs's ECI explaining page. Can you comment on this? Seems like selling physical goods to US customers IS ECI.
I don't like that he didn't reply to this. Some trust has been lost here. I was about to make an appointement with him but I am not too sure anymore.
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax
Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on
or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements
under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
Great video, recently found your channel and all your videos have been very helpful
Thank you!
Glad you like them!
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax
Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on
or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements
under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
Really appreciate all your help and information James! One question though... Suppose I have an LLC in the US as a non-resident and my clients are US companies, if I receive a payment in my online bank account from them do I need to pay income taxes annualy? I will not have any contract with them just a payment agreement for the services provided. Thanks so much!
Thank you.
thank you
"you'd still have to comply with sales taxes if you're selling physical products." What about digital products?
Good video. So we pay no taxes in the US. But do we pay taxes in our resident country? I live in the UK and want to know of I have to declare it.
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax
Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on
or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements
under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
@@joedichiara6525 but Delaware has 0% corporate tax so ?
@@Bambotb0% State tax maybe. But I think it’s 4% now.
But you’ll end up paying federal taxes.
What if a non US resident is doing Amazon FBA through US LLC, selling products to Americans?
Thank you James, for the information.
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax
Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on
or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements
under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
Thank you, James.
Sounds great thank you for the effort : )
I have scheduled a meeting for this Friday, look forward to talking to you.
Nice! It's probably with the team, thanks!
Great video ! What is the partnership llc is owned by a US citizen and a foreign national ?
Great and simple explanation for foreigners thank you.
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax
Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on
or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements
under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
Hi, just to clarify, me and my brother are the owners of a registered LLC in Wyoming and we are Non US Residents (foreigners ) living in Sri Lanka. Are we supposed to file for any taxes ( sales tax, etc) in the USA ? . We provide services from outside of the US. We are only simply registered in the US . would appreciate the reply thanks
Pretty sure you have to be a tax resident of a country with an IRS tax treaty and need fill out a W-8BEN-E to avoid withholding taxes. The IRS will share this info with your country of residence. SO you have to pay taxes in the country that you reside. If you reside in a zero tax country or any other country with no IRS tax treaty you will not qualify for zero withholding taxes. Happy to hear I'm wrong on this.
Withholding taxes only apply on FDAP income. So that's dividends, interest, rental income and services performed inside the US.
If the amounts being paid to a NR are not FDAP thenthere is no withholding
@@JamesBakerCPA Great content! Btw, apart on dividends, should foreigner also subject to Tax withholding on gross proceed for security sold even with no capital gains?
@@JamesBakerCPA when you talk about Service inside the US. Does digital work for US client count or does it need to be service performed in the US
It depends on where you live. You pay the taxes according to the tax rate in the country you live in.
As A Non Us Citizen myself if i hire a registered Agent would that act cause me to pay US income tax?and Also if i use a services like Bizee to open an LLC + Bank accounts and other Services to have US address as well would this mean i have to pay US taxes? The BUsiness i have in question is Amazon FBA wholesale . im curious to hear your thoughts on this :)
What about adsense income? Is there any process? For asian country without tax treaty?
It's more complicated and treaties are more useful for this
Currently setting up a digital product store in South Africa. Seems the only way to accept payment is by setting up an US LLC via Stripe Atlas. But I’m really struggling to understand what I will need to do tax wise as they I will need to complete tax returns in the US. Welp. Feel so out of my depth here. Could you help?
Important information!
Hı.
I have little question ;
İ m a non us citizen,I will open a LLC in 2024 and ı m a software developer,if earn money from my Llc such as online marketing.
I have to pay my tax directly to IRS but you said if your sales came from international the LLC wont pay any tax..is that correct?
Hi James, incredible explanation, I am still missing one part, if I am not resident, I have my LLC and also a personal U.S banking account, what tax should I pay if I do payments from my LLC account to my personal U.S banking account? that is my question. Thank you very much
No taxes assuming all services performed outside the US
Could you give us the link of the a62a3 section on IRC?. Please, I couldn't find it.
I am not citizen and non resident. I want to open my llc in Wyoming but my problem is I want to move to South Korea and receive content creation collaboration payment from Korean entities. Would this be taxed by Korean government due to any agreement between USA and Korea government or not. Thank you
so if you'r a foreign LLC owner who operates a dropshipping ecom, you are not required to pay tax even if the vast majority of your customers are USA resident
Hi, I plan on getting a us llc set up for Amazon ecommerce (non resident- Dubai) Dubai has no tax treaty with US and I believe witholding is 30% for US. Because this will be entirely remote. No physical address, only virtual, Payoneer for online banking, no employees in us. Will this be considered for 0% witholding? How can I apply for no witholding tax on the income I take out for myself ? Is there any way you'd recommend... thank you
Hello James , thanks for the valuable info you sharing, I set up LLC In Wyoing activity Social Media and wanna do business on Real Estate industry buying Lands and engaging in wholesale Realestate in different States.
- Is it a problem for me if doing different activity with the LLC as for now I want to Only do RealEstate business with the LLC.
- What are the Taxes I need to file for the LLC.
- FERPTA will be applied when selling any property as foreigner , what file should i submit.
Hey may I ask you if you've found your answer to your first question? I wonder also if a LLC can be used for another purpose than initially intended.
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax
Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on
or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements
under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
I made non-resident llc in wyoming. I do business of exporting goods from us to other country. also the payments are comming from other country. Do I need to pay federal tax in the US?
Hi James, a very good niche for u is software developers, like me, I live in Brazil and i code for US/CAN based companies, does this activity is taxable ?
Also so far I have a “Brazilian llc” however I’m looking to decrease my taxes, by opening an llc in America, so far I’m paying 9% on my income, and I’m looking to pay 0 😅
Have you find any solution?
Hey, firstly do you offer llc registration as an agent representative?
Secondly as an e-commerce site, with dual citizenships how do i choose which country to pay the other tax? (Huge difference between both of them)
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax
Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on
or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements
under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
I am a foreigner who does not reside in the USA. I run an online travel agency. I do not organize tours in the USA and I have no customers in the USA. In this case, to whom will I pay taxes
So if you have an e-commerce business you should pay taxes in the US as it says on their website in the Effectively Connected Income (ECI) "If you own and operate a business in the United States selling services, products, or merchandise, you are, with certain exceptions, engaged in a trade or business in the United States. For example, profit from the sale in the United States of inventory property purchased either in this country or in a foreign country is effectively connected trade or business income."
Also thinking in that 🤔 Someone advise please
Not if you live abroad llc in some states have 0%
Thank you, I’ve been waiting for this kind of video for a long time....
More to come!
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax
Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on
or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements
under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
Amazing content. You're absolutely right that there's no dedicated content for non-residents.
I wanted to ask if I get a US LLC, which is not owned by a single member but by a foreign company (parent company) will I be able to apply for US business credit cards?
Also will I need to get ITIN if suppose my UAE company owns the US LLC?
THANKS 😊
There are great questions. To answer them correctly I would like to jump on a free call with you. You can book in here - jamesbakercpa.com/schedule
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax
Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on
or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements
under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
Does a RUclips or facebook content creator can incorporate LLC and pay zero tax? As I am non US resident
Will the US brokerage withhold for gains or options income in additon to dividends and interest?
I'm a video production company in Canada and want to start selling my service in U.S.
If I register an LLC in one of the tax free state, as non U.S resident and then seek business from states other than my registered state. Do i have to charge tax on my invoices to the clients in U.S?
Also since I won't be there in person in any state, I will be hiring local photographers or videographers to go on site and film and photograph for me, does that count as employee and I'm subject to tax?
Because I'll probably be paying the contractor via PayPal.
Would appreciate the insight.
Thanks
How would stock & futures trading fall into this?
very good inforemation ,,,,please i need information may i get payment gatway outside of USA ?
I only help with us payment gateways but you can try stripe
Have you made any videos about strip payment gateway.?
If I want to sell a product , through my US LLC from say India. Then what are tx implications?
Hi! Follow the link in bio or find me at www.jamesbakercpa.com/ for a free consultation! 😁
My LLC is a foreign owned disregarded company with IT staffing nature of business operating from India with no physical presence yet in USA, doesn't have direct W2 employees or subcontractors but have some payments from companies as referral fee. Can I avoid taxes?
Hi great content as always but I've a question is that what if foreign LLC owner want to sell the company from whatever valuation. Will they get taxes after the payout?
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax
Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on
or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements
under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
So the llc can receive payments from the US and the owner living abroad doesn’t pay tax?
what if you are a US citizen and you have companies in multiple states can you pay 0% tax if you establish a parent company in ireland (let's say) where there's no or very little tax?
Hi, Great content me and my brother are the owner of a registered LLC in Texas and we are non-US residents (foreigners ) living in Asia. Are we liable to pay any taxes on our personal income (profit) in the USA ?. We provide services from outside of the US. We are only simply registered in the US Texas. would appreciate the reply thanks
Sounds like there is no US tax for you. If you ever need help with tax reports or banks let us know! Thanks for watching
Hello James, I was told by an accountant that I need to file federal income tax on my individual profits? I would highly appreciate it if you can provide some guidance on this. Please
I have a print on demand store running from germany but selling to the us market only. my fulfillment provider is located in the us. do i need to pay us taxes anyway?
what if I am a e-commerce seller (amazon) and first i am not a us resident and form llc and later on i become a resident
do you help non residents to register llc??
I do have a big question though, if I set up a server in the US, and setup an online service (an app for instance), I'm not charging for the software I coded but will be charging for the value provided by the app.
Where would be the location of activity then? Is that taxable income from the US?
Excelente contenido James. Tengo una pregunta: Si mi empresa es una LLC registrada en USA, qué comprobante de pago debo entregarle a un cliente de Panamá, que paga con transferencia bancaria a la cuenta de USA de mi LLC, para que le sirva en su declaración de impuestos de Panamá y pueda registrar los pago que le hace a mi empresa como un gasto?
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax
Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on
or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements
under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
Corporation have same rights as an llc in this matter?
If you have one partner that is in the US and two partners that are foreign, do the foreign partners need to file a 1040-NR and pay taxes on the income from the K-1?
Hi Tamara! Follow the link in bio or find me at www.jamesbakercpa.com/ for a free consultation! 😁
3:37 HA! Tell that to Germany… I absolutely hate that about being a German resident. They tax absolutely all assets globally.
Hi, I am non resident , owner of an LLC and have ITIN, so which option I have to select Married or unmarried, I am married in Pakistan.
But James I say, what if I have a USA SSN (because I legally worked in US for a short period) and have a single-member LLC selling on amazon and shopify? Still zero taxes? Hope you are not gonna charge me $500 to answer this question :))
Thanks a lot for doing this btw, it's really hard to find anyone who is really knowledgeable in this topic.
Hi James, Can i open LLC that will owned by foreign corporation from Panama and what is the arrangement for taxes in this scenario
He's wrong. Don't do it. This is the instructions on form 5472. A foreign owned LLC is NOT a disregarded entity. It's taxed as a Corporation and has to pay corporate income tax
Foreign-owned U.S. DE. A foreign-owned U.S. DE is a domestic DE that is wholly owned by a foreign person. For tax years beginning on or after January 1, 2017, and ending on
or after December 13, 2017, a foreign-owned U.S. DE is treated as an entity separate from its owner and classified as a corporation for the limited purposes of the requirements
under section 6038A that apply to 25% foreign-owned domestic corporations. See the final regulations at IRS.gov/irb/ 2017-03_IRB#TD-9796.
I am from Pakistan. I have an LLC in Wyoming. On that LLC, i have a trademark and i sell on Amazon. How much tax will i have to pay? How to avoid the taxes?
Probably no taxes! Did you finisht he video ?
@@JamesBakerCPA Yes i did. I am confused because people say that there will be income tax. Can i arrange a consultation call with you?
What about annual franchise tax?
I have an LLC registered in June 2023 and its an online tour agency, when am I supposed to file taxes and which form do I need? Many comapnies I deal with in the US also ask me to fill W9 form is it ok to fill it?
April
@@Hmmm0x which form do I fill and is the W9 form necessary?
Too bad my country taxes for the both of us😂😢 Greece is such a prison to poverty... Wish I knew how to break free .
I want to schedule a call. How can I do that?
Hi! Follow the link in bio or find me at www.jamesbakercpa.com/ for a free consultation! 😁
Una LLC che opera sia negli Stati Uniti che all'estero può pagare le tasse solo sul reddito interno (immobiliare) e non su quello guadagnato in tutto il mondo?
does the LLC have to be foreign in order to not pay taxes or does this work with a US LLC
You would pay U.S. taxes as a U.S. resident with your LLC (unless it was taxed as a c corp, then corp taxes at 21%).
Thats at the state level.. lol
IRS is Federal. The rules are clear-cut. Black and white, my friend.
please guide me..i made a non US resident two member LLC in Virginia last year and i ll be doing amazon whole sale only..Will i be taxed for state income tax?.. i am worried if this is true.. i am planning to move my llc to some other states where there is no state income tax..what do you suggest?
Hi! Follow the link in bio or find me at www.jamesbakercpa.com/ for a free consultation! 😁
Please make a new video for a non resident that want to create the LLC for trading crypto.
And also the best exchange we can use. Not FTX 🤣
The USA is the biggest financial paradise ever.
Im foreign owner of an LLC, we work with online courses and we sell mainly to US, revenue over 250k year for US clients. So I can still pay no taxes? We dont have any physical presence in the US, no employes and nothing like that
Correct, no taxes!
But you have to get the tax returns filed properly every year, of course you won't be liable to pay any tax but have the get the filings done. 😊
@@smartmoon786please guide me..i made a non US resident two member LLC in Virginia last year and i ll be doing amazon whole sale only..Will i be taxed for state income tax?.. i am worried if this is true.. i am planning to move my llc to some other states where there is no state income tax..what do you suggest?
So when did we become slaves to have to pay tax from our labor according to the supreme court the government is not
bad tie
No way, I love this tie
Foreign owners LLC with ZERO tax😂😅 impossible...
Yes , you need to pay income tax in your home country.
@@mousamkonwar12please guide me..i made a non US resident two member LLC in Virginia last year and i ll be doing amazon whole sale only..Will i be taxed for state income tax?.. i am worried if this is true.. i am planning to move my llc to some other states where there is no state income tax..what do you suggest?
@@abdulrabb1616yes...u have to pay taxes there..... Floria, Wyoming like this States Don't require taxes
@@murshed12 no we don't