LLC foreign member tax problem


L

larsinla

Good Morning!

Establishing an LLC with two foreign members (non US
citizens/residents) from different continents I ran into several tax
problems. One of the problems is still not solved: one of the foreign
members owns a company in the middle east and would like to have a
monthly amount paid to his company for services rendered to the LLC. He
would prefer to be paid that way rather than receiving a salary from
the LLC. His company would of course officially bill this amount to the
LLC each month.

Are we running into any tax problems since he is a member of the LLC
but instead of receiving a salary (he is the acting COO) he would
basically receive a payment to his company in the middle east!

Thank you for your help in advance!
 
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T

TObject

Hi, I don't know answers to all your questions, but I thought I'd
jump in with what I know. LLC members should not receive salary
from the LLC. Instead, they can draw against their capital account,
and they can receive guaranteed payments.

HTH
 

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