LLC - where are services performed

[Parabola]

Hello,

I formed a US LLC ( I am performing services from my home country) and my question is how is IRS going to know from where I am providing services, is it inside US or if outside of US ? They will just check if I was entering physically their country or what? I am having some doubts because on SS4 form for EIN on line 6 for principal business address I have put my registered agent's address of my LLC. Should I have put my home country location? Can that make some missunderstanding and IRS will treat it like I am performing services within US? Because it is key for my tax status, I want them to know that I am performing those services from my home country. Can that line 6 on SS4 make some confusions?

Thank you in advance.

 

[fshore]

It's where you performs the services that counts, not what you put in that form. Imagine if all Americans could just put a foreign address on that form and not have to pay any US tax..

 

[metronic]

I was always confused how the usa llc works, can you have clients who are in usa or strictly only foreign client outside usa ? if yes, would uk LLP do the trick for a company to not be a resident and not pay tax in UK ?

 

[glengoolie]

it is either where the services are being provided from or where the management is located. so if you have llc(i assume it is the same type of structure like in europe) then the location of the office is the tax residency. but keep in mind that you cannot do a work for your llc without a contract. that is illegal employment. if the company is equity based and there is separation between what the company does and where it is managed from, the tax residency is the location of the management. that is why you see big corporations moving their head offices all over the place, tax residency is where they sit.

i think your issue is the fact that you think that you having an llc and you doing the work without contract between you and the llc is ok, it is not. you have to have a contract with the llc and then you are either employee, and tax residency is where the llc has the domicile or you are contractor and then you have two separate business entities.

but beware, i just learnt in the neighbouring thread that some european countries use domicile as tax residency for companies, no matter where the services are being rendered at, which complicates things and would require more work to learn about specific use case. in other words, they treat the llcs like equity based companies.

 

[fshore]

I was always confused how the usa llc works, can you have clients who are in usa or strictly only foreign client outside usa ? if yes, would uk LLP do the trick for a company to not be a resident and not pay tax in UK ?

The single member llc is disregarded for taxes in the US. You are taxed the same way as if the llc didn't exist.