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US LLC Recurring monthly subscriptions from US costumers

MarkusCostigan

Active Member
Apr 23, 2022
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Hello guys, are monthly recurring subscriptions from US customers (SaaS) considered US Source income and therefore should they be taxed in the US?

From IRS:
"you are engaged in “considerable, continuous, and regular” business in the US"

Obviously no US employees, non-resident LLC, no other ties to US.

Thanks.
 
Last edited:
Is there any circumstance that would increase your chances of being taxed?
Yes, e.g. some US agent who is working exclusively for you guarantees you to become ETBUS and being taxed.
For example percentage of US customers, total turnover (I think 5k months are different in the eyes of the IRS than 5M per month)
This is of no importance.
 
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