If I have an ecommerce shop and I have customers who are based in the US buying stuffs from my shop, Or I have a consultant or digital agency whose office and business are located outside of the US but my clients are based in the US, all these are considered US-sourced income?
Hi Jason, thanks a lot for the helpful videos you're sharing! I have a question and would be happy if you answered! I am a non US resident who owns 100% of the LLC registered in Delaware and I haven't elected to be taxed as S-corp, so I'm automatically considered Disregarded Entity I believe. The business that I'll be doing will be drop shipping, so there won't be any operatioins, warehouses, offices and etc. in US, I'll simply order proucts from outside the US and ship them directly to my US customers. The question is: which forms should I file and which taxes exactly should I pay as a person and as an LLC? Is it going to be just state tax (franchise tax which for Delaware is $300) and federal tax? In other words, what is the total tax % that I need to pay before I can take my profits as dividends. Also please let me know how much is the federal tax rate that I'll need to pay. Thanks a lot in advance!
If the personal services are performed outside of the U.S., then it will be foreign source income. Foreign source income can still be effectively connected income (ECI) to the extent the earnings are attributed to the activities of a U.S. office.
Whether you owe U.S. taxes will depend upon whether you are engaged in U.S. trade or business, and if so, do you have any effectively connected income (ECI) with that U.S. trade or business.
I am a non-US citizen residing outside USA and providing bookkeeping/consulting services remotely to a US based company as a freelancer and the payment is more than 5000 USD per month , is this applicable to any withholding tax in the US? Thank you for your help!
When a non-US resident software engineer offers remotely (no assets in US) his services through his US single-member LLC to customers in US, does he not have to pay any US taxes?
Hello, a non-usa person providing personal services in USA (he/she is in usa providing the service) is this ECI? is it subject to 30% withholding? Do I need to get a 8233 from this person to not withhold the 30%? Thank you very much
Whether you are subject to U.S. taxes as a nonresident is a complex issue. We have another video that covers some of these issues: th-cam.com/video/VjwjoewQ4x4/w-d-xo.html
You should submit a Form 1040-NR if you are subject to taxes in the U.S. Whether you are subject to tax in the U.S. via a U.S. LLC is a complicated issue without a straightforward answer. We have a video that discusses some of these questions here: th-cam.com/video/07-D3PTa7Bs/w-d-xo.html
If a Non US citizen, non US resident, doesn't actually have any office or employee in US, But register LLC (New Mexico) with business address mentioned a Virtual US business address, will that make all the taxes applicable just like any other local LLC? Should I register LLC with my Non-US international address instead of US virtual business address? And, same scenario with mailing address part 4. Should I mention my Non US address or using virtual business address will not make all the income US source of income? Business is about App membership and web hosting services and nothing physical.
Hi Jason,
I wish you to post a video on income sourcing rules for between US and High tax regime country.
Per IRC subsections 871 (h) and (i), interest income that is not effectively connected with a US trade or business is not taxable to NRAs, right?
Does a Non-Resident also get to deduct expenses/property tax/depreciation on rental property ?
If I have an ecommerce shop and I have customers who are based in the US buying stuffs from my shop, Or I have a consultant or digital agency whose office and business are located outside of the US but my clients are based in the US, all these are considered US-sourced income?
Hi Jason, thanks a lot for the helpful videos you're sharing! I have a question and would be happy if you answered! I am a non US resident who owns 100% of the LLC registered in Delaware and I haven't elected to be taxed as S-corp, so I'm automatically considered Disregarded Entity I believe. The business that I'll be doing will be drop shipping, so there won't be any operatioins, warehouses, offices and etc. in US, I'll simply order proucts from outside the US and ship them directly to my US customers. The question is: which forms should I file and which taxes exactly should I pay as a person and as an LLC? Is it going to be just state tax (franchise tax which for Delaware is $300) and federal tax? In other words, what is the total tax % that I need to pay before I can take my profits as dividends. Also please let me know how much is the federal tax rate that I'll need to pay. Thanks a lot in advance!
For a non-resifent alien, if personal service performed outside the US for a US company, how to allocation the income source and use which form？
If the personal services are performed outside of the U.S., then it will be foreign source income. Foreign source income can still be effectively connected income (ECI) to the extent the earnings are attributed to the activities of a U.S. office.
Is my income US source if i do amazon fba online remotely from India with only a virtual business address in US?
If I´m based in Chile and I´m doing tele sales from Chile to customers in the US, should I pay tax and which one? Thanks
Whether you owe U.S. taxes will depend upon whether you are engaged in U.S. trade or business, and if so, do you have any effectively connected income (ECI) with that U.S. trade or business.
I am a non-US citizen residing outside USA and providing bookkeeping/consulting services remotely to a US based company as a freelancer and the payment is more than 5000 USD per month , is this applicable to any withholding tax in the US? Thank you for your help!
When a non-US resident software engineer offers remotely (no assets in US) his services through his US single-member LLC to customers in US, does he not have to pay any US taxes?
I am a non us resident working in a us flagged boat but operating outside US water.. do i need to file a tax?
Hello, a non-usa person providing personal services in USA (he/she is in usa providing the service) is this ECI? is it subject to 30% withholding? Do I need to get a 8233 from this person to not withhold the 30%? Thank you very much
Yes, generally a person physically present in the U.S. that earns income from performing personal services will be a U.S. trade or business and ECI.
I am a non us resident but I have income from stock and crypto. Do I need to file 1040 NR and where exactly I can get that income exemption
Whether you are subject to U.S. taxes as a nonresident is a complex issue. We have another video that covers some of these issues: th-cam.com/video/VjwjoewQ4x4/w-d-xo.html
Hello i provide document editing service from india through my single member disregarded LLC. Shud i submit form 1040NR?
Thank you
You should submit a Form 1040-NR if you are subject to taxes in the U.S. Whether you are subject to tax in the U.S. via a U.S. LLC is a complicated issue without a straightforward answer. We have a video that discusses some of these questions here: th-cam.com/video/07-D3PTa7Bs/w-d-xo.html
If a Non US citizen, non US resident, doesn't actually have any office or employee in US, But register LLC (New Mexico) with business address mentioned a Virtual US business address, will that make all the taxes applicable just like any other local LLC?
Should I register LLC with my Non-US international address instead of US virtual business address?
And, same scenario with mailing address part 4. Should I mention my Non US address or using virtual business address will not make all the income US source of income?
Business is about App membership and web hosting services and nothing physical.