The US LLC is an excellent option to develop an economic activity (dropshipping, consultant, e-merchant, etc.) at a lower cost. It is possible to form an LLC in the United States while being a tax resident of any country. Indeed, the United States have signed a bilateral tax treaty with more than sixty countries.We recommend you to be accompanied during your steps in order to ensure the conformity of the tax forms made and to avoid possible errors.
The PrepaTaxLLC team is at your disposal to guide you throughout your project.
What is the tax treatment for an US LLC?
The creation of an US LLC offers several legal and tax advantages to the members. The structure of an LLC can be single or multi-members. It can carry out various economic activities, such as real estate, trade, import/export, investment (crypto, stocks, etc), and many others.
The LLC is considered a semi-transparent company for tax purposes (i.e. a disregarded entity). This means that the members are personally responsible for taxation in their country of residence. By choosing an advantageous tax residence, a U.S. LLC member can significantly reduce his or her taxes.
Nevertheless, LLC tax reporting can be complex, especially for non-U.S. resident members.
It is highly recommended to seek the help of tax experts to avoid mistakes that can lead to costly fines. At PrepaTaxLLC, we are here to help you complete and file your tax forms correctly, and to help you obtain an EIN and a U.S. address for your business.
What is the tax treatment of Italian tax residents who are members in an US LLC?
If a member of the U.S. LLC resides in Italy and owns an equity interest, he or she will be subject to taxation on his or her share of the profits based on the income tax rates in effect in that country. In such situation, the member will be considered to have received taxable income in Italy for his or her share of the company's profits.
Italian residents are taxed on worldwide income. Personal income tax covers various sources of income such as income from employment, income from self-employment, income from capital, income from business activities, income from real estate, as well as other types of income.
In 2017, the Italian government approved a special regime for inpatriates and a flat tax in an effort to encourage wealthy foreigners to invest in the country.
Similar to the inpatriate (also known as non-dom) regimes in Malta, Portugal and England, this regime offers very attractive direct taxation and is already gaining popularity among the "mega-rich".
The regime is designed to attract high net worth individuals and highly skilled professionals.
However, it may be of particular interest to professional athletes who earn most of their income outside their country of residence.
Tennis, golf and racing professionals should consider this regime.
Replacing the tax that would have to be paid on all foreign income with a one-time payment of only €100,000 is undoubtedly a very attractive opportunity for certain high-income profiles.
To avoid errors or omissions in your corporate tax returns, it is recommended to entrust this task to our tax experts. The IRS imposes significant fines of $25,000 per form per year for each error or omission.
Our specialists can help you prepare and file your tax returns safely, helping you through the process.
How can PrepaTax help you avoid errors in your LLC's US tax returns?
We recommend using our services for your LLC tax returns as it can help you avoid costly errors, ensure compliance with U.S. tax laws and save you time.
Fines for errors or omissions can be as high as $25,000 per form per year. If you have multiple LLCs, repeated errors can quickly lead to significant fines.
At PrepaTaxLLC, our tax experts can help you properly complete and file complex tax forms, as well as obtain an EIN and a U.S. address.
By entrusting us with this task, you can avoid any risk of error and focus on growing your business.
Disclaimer: This document has been prepared on the basis of information available in the public domain and is for guidance only. All necessary precautions have been taken to ensure the accuracy of the information. However, no legal lability is accepted for any consequential incident that may result from errors or omissions contained in this document.