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  #1  
Old 03-17-2007, 12:52 PM
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Join Date: Mar 2007
Posts: 3

DE LLC Foreign founder,


What is the name of your state? Delaware
I'm a non us citizen/resident and I formed a llc in Delaware. I'm not doing business in Delaware at all, my clients are non us residents, but I have a us bank account, EIN, and I signed for a paypal merchant account.
Do I have to fill any tax forms and pay taxes in US? From what I've been told, I don't have to do it, I'll pay all the taxes in my country, and I don't have to declare anything in US, all I have to pay is the franchise tax.
My info is correct?
  #2  
Old 03-17-2007, 01:40 PM
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Join Date: May 2004
Posts: 41,292
Quote:
Originally Posted by belege View Post
What is the name of your state? Delaware
I'm a non us citizen/resident and I formed a llc in Delaware. I'm not doing business in Delaware at all, my clients are non us residents, but I have a us bank account, EIN, and I signed for a paypal merchant account.
Do I have to fill any tax forms and pay taxes in US? From what I've been told, I don't have to do it, I'll pay all the taxes in my country, and I don't have to declare anything in US, all I have to pay is the franchise tax.
My info is correct?
No, your info is not correct. You have formed a US business entity, located in the US, and that makes you reponsible for US taxes.
  #3  
Old 03-18-2007, 11:38 AM
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Posts: 3
Quote:
Originally Posted by LdiJ View Post
No, your info is not correct. You have formed a US business entity, located in the US, and that makes you reponsible for US taxes.
A LLC isn't really a us business, because a llc is not, from Tax point of view, a person. All the income from a llc is my own income, and, as long the income isn't generated in the us, I don't have to pay taxes in US. So, can you elaborate you advice, so I can understand why I must pay taxes in US?
  #4  
Old 03-18-2007, 01:54 PM
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Join Date: Feb 2005
Location: Elgin, IL USA
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But from a tax point of view, an LLC is a "corporation" that must pay taxes if it has income (after deducting qualified expenses).

What is the country of the registered address for the LLC, and if not in U.S. why is there an LLC anyway? If funds pass through a U.S. bank, then the IRS is going to be interested, and the bank may even file a required suspicious activity report (SAR). Big brother (Uncle Sam) likes to keep an eye open for things like drug money, money laundering, and terrorist funds, besides unreported income.
  #5  
Old 03-18-2007, 05:24 PM
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Join Date: May 2004
Posts: 41,292
Quote:
Originally Posted by belege View Post
A LLC isn't really a us business, because a llc is not, from Tax point of view, a person. All the income from a llc is my own income, and, as long the income isn't generated in the us, I don't have to pay taxes in US. So, can you elaborate you advice, so I can understand why I must pay taxes in US?
Yes, an LLC is indeed a US business. A registered US business entity is subject to tax just as an individual would be subject to tax. It doesn't matter that the income is from foreign sources, its still income to a registered US business entity.

If you are truly doing no business in the US, then immediately dissolve your LLC and set up a business entity in your home country, and open bank accounts with a branch of a bank that is from your home country, or an international bank that won't require a US tax identification number.

Otherwise, you are subject to US tax.
  #6  
Old 03-19-2007, 07:27 AM
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Join Date: Mar 2007
Posts: 3
I'm sorry, but did you considered the difference between llc and corp? A llc isn't subject to taxes. All taxes is payed at the member level, not at the llc level .And because I'm not in the us, I pay taxes in my country, not in US. Do you have any proof, text law or something, that I have to pay taxes in US?
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