USA Delaware LLC - UK resident Member

[danielcrozier]

Hi All

Can anyone give me some advice on US tax.

I am interested in forming a Delaware LLC (Single member LLC) the company will not trade or earn any money in the USA.

All the LLC incorporators say that since there will be no profits in the US I would not need to file a return with the IRS or have any US tax liability.

I am a UK resident.

Many Thanks.

 

[David Bolenbaugh CPA]

Daniel,

Single member LLC's are treated as disregarded entities for tax purposes. If the LLC did produce revenue in the future you would need to file Form 1040NR to report the income effectively connected with the trade or business.

If you would like additional consulting in the future please contact me.

 

[valuenaut]

Hi, just to follow up on this posting. My situation fits exactly the same:

• Sole member of a WY LLC
• Non-US person
• Non-US resident
• No US operations, income, office or any assets
• Country where business activity is has tax treaty with the USA.

Then I found a great posting on taxforum.us, for which the expert answer was:

Your LLC is not taxable entity. Income /loss is passed through to you a member, and you pay taxes as individual. You, as a non-US resident, are not liable for US income tax for income derived outside of the US and passive income derived from the US, such as interest income, dividend income and capital gains. Therefore, you are not liable for any US income taxes, when your LLC conducts business outside of US. If an US LLC trades with US companies from outside of US, such LLC does not conduct business in US. Only presence of permanent establishments of the LLC in US, such as offices, warehouses, etc., allows to classify such LLC as a LLC conducting business in US. No income tax return required as long as your LLC conducts a trade or business outside of the US, and you are are non-US residents for income tax purposes.

Could anyone validate whether this applies?
Am I liable to pay any US taxes?
And if not, do I have to file to the IRS at all?

Many thanks.