AboutRichard Fritzler Expertise Specializing in Business and Corporate taxation. Comparing the advantages and requirements of different business entities, such as Sub-S Corporations, LLC`s, Partnerships (Both Limited and General), Doing Business as a Sole Proprietor, or Using a C-Corporation. Issues regarding K-1 distributions, 1040, schedule C, 1120, 1120s. Are you considering domiciling a Corporation in a low tax state? I can review the benefits and misinformation that exists.
Experience I have been in the business of assisting business owners in reducing their taxes and liability since 1986. The company is Owelesstax, incorporated, at www.owelesstax.com
Organizations National Small Business Owners Association. Publications Contributing author to "The Corporate Standard Newsletter".
Publications Contributing author to "The Corporate Standard Newsletter".
Question Hello, I hope you can help clear up some questions with foreign owned LLC tax.
I am located in South Africa, and registered a Delaware based LLC. If I understand it correctly I do not have to file/pay any tax in Delaware/US as everything 'falls through' to me as person here in South Africa.
Is that correct?
Just to note: I do have a SSN as I worked for a few months in the US on a student visa. Does that make a difference to the foreign owner rule above? (I am not a US citizen and do not have a green card. I also do not have any stores or employees in the US, but I do sell my services to people in the US)
I also signed up for a bank account under the LLC. What happens to any interest, is that taxed?
Thanks!
Answer Uhhh, no that would not be true.
Since this is a pass through entity all of the money will be subject to the 30.5% withholdings to foreign nationals. Depending on the tax treaty between nations you may get credit of that amount against your South African tax return.
You would file the tax return under your Tax ID number, and the distribution of either the money or at least the tax liability would be passed to you in South Africa.
