Delaware LLC owned by NON - US citizen taxation

[napsi]

Hi,


I'm a little bit confused regarding the taxation of a Delaware LLC owned by NON-US residents!


LLC Owned by a Non US Alien


If the LLC is owned entirely by non- resident aliens, no LLC business is conducted in the US and all its income is foreign source income, then no tax need be paid to the IRS. The US, in this case, becomes a tax haven for non-resident aliens.


In other words, the if an LLC is fully owned by non us residents and the LLC’s income is not derived from the United States and it is not effectively connected with trade or business within the United States nor do they employ US residents or rely on a dedicated place of business within the United States, the income is not subject to US tax


But what happens when i want to take out money from the company?


I have to pay personal income tax?

 

[peperino]

Hi,


I have the same question and I am lost here because it seems that nobody knows. I contacted some accountants but they were specialized on US RESIDENTS.


Regards,


Enrique

Hi,
I'm a little bit confused regarding the taxation of a Delaware LLC owned by NON-US residents!


LLC Owned by a Non US Alien


If the LLC is owned entirely by non- resident aliens, no LLC business is conducted in the US and all its income is foreign source income, then no tax need be paid to the IRS. The US, in this case, becomes a tax haven for non-resident aliens.


In other words, the if an LLC is fully owned by non us residents and the LLC’s income is not derived from the United States and it is not effectively connected with trade or business within the United States nor do they employ US residents or rely on a dedicated place of business within the United States, the income is not subject to US tax


But what happens when i want to take out money from the company?


I have to pay personal income tax?

 

[cangarooo]

If i'm not mistaken, one of the requirements (together with the one you listed) is to not have a bank account located in the US territory.


This means you can open an LLC but the related bank account has to be based elsewhere.


Hope someone will be able to confirm this.

 

[AMD]

Hi,
I'm a little bit confused regarding the taxation of a Delaware LLC owned by NON-US residents!


...


But what happens when i want to take out money from the company?


I have to pay personal income tax?

Of course, you have to pay income tax according to your country. But I think nobody will know that your company has transferred you money - there is bank secret. The only way is if you are under investigation. (This is my opinion, don't take it as 100% guaranteed.)

 

[joesmo]

Try getting a bank account for an LLC. I was in the US and found it impossible.

 

[RapidFinancial]

You have to have someone to co-sign for a US bank account. I was looking into that recently for one of my clients.


Most people won't co-sign unless they know you, so it becomes an issue.


The reason they won't co-sign is because if you commit fraud, the co-signer is responsible for picking up the tab.


My legal guy said to as the management company who created the LLC. Did you try them?


Michelle

 

[anto]

That should'n be a problem just walk into a bank TD Bank prefferable bring you company papers with you and you ITIN number with you as a non us citizen and they will open your bank account i have done it that way and i own a oregon LLC opened the bank account in nyc

Try getting a bank account for an LLC. I was in the US and found it impossible.

 

[RapidFinancial]

Did you mean your EIN?


I believe the poster meant they aren't a US citizen. You have to be a resident in the US in order to get one, but that's for a personal account. I'm not sure about the corporate account. I'm still checking into that for my clients as it's much easier for me to help them when they have a US identity & US bank account.


We are trying to find a way.

 

[anto]

No i did' mean EIN i ment ITIN here is the link irs.gov/Individuals/Individual-Taxpayer-Identification-Number-(ITIN) i am a non us citizen and have a ITIN and a US Bank Account with credit cards both is doable personal and business bank account with the ITIN number