Why a Foreign Owned LLC Pays NO TAXES in the United States


hello Internet

hello everyone I hope I hope you're all

doing well I was I get this question all

the time that I was going through my

notes and I put together this document

that I thought I'd like to share and

it's basically why foreign owned LLC's

don't have to pay income taxes in the

United States and it's so glamorous we

go over the actual code sections and

it's not that complicated I say that

from someone who does it professionally

but it's the concept is pretty pretty

simple and I'll summarize it here if you

are if you if you have a u.s. LC and

you're not a u.s. resident you have no

office no employees and you don't do any

sales or any business and no inventory

or anything inside the United States

then you don't have to pay income taxes

in the United States

I say inventory if you selling online

like Amazon will seller and Amazon has

your inventory I that that doesn't count

for the purposes of this conversation so

I have a little table contents but

basically the concept when I talking

about and I have a little example if you

want this some message me and I'll send

you a copy of this so Code section 865

United States resident non-resident so a

65g one a the term United States

resident means person who does not have

a tax home well uh an individual who is

as a tax form in a foreign country or as

a non-resident or anything defined in

this code session fine so a non-resident

is any other person so as long as you

don't have a green card you're not a US

citizen you're not a resident so that's

that part now if you have an LLC how LLC

is treats for tax purposes here and

LLC's federal tax treatment depends on

whether has one member of multiple

members and made a tax election by

default and LLC will be taxes either a

sole proprietorship like in that's

disregarded from its owner or multi-hour

partnership if there's more

one member there both passed through and

if you have a multi-member LLC it's

still not subject ax ation if it doesn't

meet these criteria so you and you can

elect your LLC to be taxed as a

corporation if you want but then you pay

tax in the United States so source of

income now this is where we get into the

the good stuff here performing services

in the United States a sixty to a three

say it's a compensation performed

outside the United States is a non-us

source income there's more details but

if you do everything outside the United

States it's not us source income having

a fixed place of business in the US and

we have goes on to Code section eight

sixty four so having the source I have

the source code section is fine you do

not have a fixed place of business in

the United States unless you have an

office you have agents and you know my

clients that use our address we're um

we're not an agent we can't enter into

contracts or anything so we don't do

anything any of that for our clients

that we let we let our clients use our

mailing address so yeah don't open an

office or hire salespeople no employees

contractors is different if you have a

person in the US who's not an agent

can't enter into agreements and you

doesn't do sales for you if he's an

independent agent that's fine like a

contractor you hire someone to do design

work to do something whatever that's

fine but if they're a salesperson or can

enter into contracts then you get you

get an opinion about it I think you

should look into it a little further if

you try not to pay taxes here and then

there's other kinds of us source income

like rental income

obviously you if you're getting rental

income then you have a u.s. business

there's some exclusions if you have a

certain student visas you're not in

you're not a resident and then we get

into the reporting requirements and some

more details and then a conclusion but

that's basically it's pretty simple

you're not doing business here you don't

pay taxes here and if you want this

report just message me and I'll send it

to you it's the tax free LLC support

memo that I wrote because I get that

it's too good to be true

message' like I don't believe you why do

you mean pay no taxes so you know the


you you probably you might have to pay

tax in your home country that's fine but

the benefit of having a u.s. LC isn't

always just not paying taxes here as a

benefit but the benefit might be that

you have access to a US market you can

accept payments from here better you

have your money in the u.s. account

instead of a foreign account there's a

lot of different benefits of having a US

company so if not paying taxes might not

be one but it's a huge if you have to

pay taxes it would make it much less

attractive right so yeah let me know if

you have any questions about this what

you think comment below happy to get

some comments and let me know if you

want the report I'll have an email to

you thanks