Creating an LLC in the United States can be tax-efficient for non-US residents, but it is crucial to properly declare the income generated by the company to avoid tax penalties. Our experts are here to guide you through the tax regime corresponding to your activity and help you file the necessary declarations for your LLC USA.
Do I have to declare my income as a non-resident in the United States?
Filing your tax returns to the U.S. tax authorities is mandatory, even if you are a non-resident for tax purposes. You must complete the tax forms and submit them to the IRS. In addition, the profits earned by your LLC must also be reported in your country of tax residence.
The members of the LLC are personally liable for the tax on the profits made by the company, corresponding to the share held by each in the capital of the LLC. Even if the taxpayer is not liable for U.S. tax (in the case of a non-ETBUS LLC), he or she must still report LLC income as a non-resident.
Income from businesses owned by non-U.S. residents is subject to a special tax regime. Income earned by an LLC owned by a non-US resident will only be subject to US tax if the company is considered ETBUS, and this does not exempt the reporting of income in both countries.PrepaTax specialists can help you determine the tax regime applicable to you according to your activity and accompany you in your tax declaration as a non-resident.
They can also help you to distinguish between the treatment of the incomes realized by the LLC with single partner and the LLC with multiple partners, according to their ETBUS or non-ETBUS status.
What are the steps to follow to file the tax returns of an LLC as a non-resident?
It is imperative to report the income generated by an LLC in the United States to the IRS, even if the company is not liable for U.S. tax. This requires the completion of several forms, including Forms 5472, 1120, 1040NR, 1065 and K-1. To avoid any errors or omissions, it is recommended to be accompanied by a tax expert when filing your income tax returns in France and in the United States.Indeed, in case of non-compliance with tax obligations, a penalty of $25,000 per form could be imposed.
What are the advantages of entrusting your LLC tax returns as a non-resident to our specialists?
Entrusting the management of your LLC USA tax returns to our experts in this field has many advantages.
First of all, it allows you to validate your tax operations in order to avoid any involuntary switch to ETBUS status which could lead to a double taxation situation. Secondly, the assistance of our experienced specialists allows you to secure your operations by avoiding any error in filling in the declaration forms.
Our experts are fully aware of all the intricacies of this complex and technical process thanks to their experience in hundreds of cases. In addition, they can help you identify deductible expenses in order to reduce the amount of your taxes. Finally, our specialists are able to advise you on the implementation of advantageous tax schemes to significantly reduce your LLC USA taxes as a non-resident. Contact us for more information.