USA Implications of starting a company with partner residing overseas.

[kdn103]

Hello all,

I am looking at starting a LLC here in chicago with a partner who is US citizen located in India. What is there that we should know of before we get started? Are there any special tax rules? I have heard that partners residing overseas are taxed deferentially and have other issues with IRS. Is this true?

Any information you can provide would be great.

Thanks.

 

[Marshall]

Yes, there are things you should know before you start.

Here is an article on the tax issues facing an LLC with a foreign partner:

LLCs with Foreign Members

 

[David Bolenbaugh CPA]

The partner in India is a US citizen, so you are not required to follow the foreign partner withholding requirements of the US. The partner may have other tax implications in India and may be required to file a tax return in India as well as the US (US citizens must always file a US tax return even if living abroad). The partner living in India would get a foreign tax credit on their US return for any taxes paid in India.

I have specialized in US Foreign tax compliance. If the you or the partner would like additional consulting please contact me at 303-872-6975.

 

[infotaxsquare]

Hi,

Yes, IRS apply different rules for Resident and Non-Residents of USA.

Regards,

InfoTaxSquare.com