How does a small corporation (LLC or Subchap S) pay a foreign partner?

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How does a small corporation (LLC or Subchap S) pay a foreign partner?

I want to incorporate as an LLC, but my partner lives in Malaysia. I'm not sure how his income will be reported. I think that he wouldn't have to pay US income tax. Can anyone make any comments on this scenario?

Thanks Brainiacks!

2006-06-16 04:44:39 · 1 answers · asked by Anonymous in Business & Finance ➔ Corporations

1 answers

There will likely be withholding on any income (or other) distributions to the foreign partner. You can read more by following the link below.

2006-06-16 05:07:32 · answer #1 · answered by just_the_facts_ma'am 6 · 0⤊ 0⤋