Is Foreign Interest on a Loan Taxable in a LLC

[Allenk]

Hi

A company in South Africa, wants to borrow funding from a US LLC.

I understand there needs to be a 'market related' interest rate charged on this.

Will the interest income from a foreign company be taxable in the US LLC?

 

[Xshore]

If the LLC has kept its default disregarded tax status then the income is not taxed in the LLC, but passed on to the member.