Hi. The situation is as follows: A Florida LLC with two "owners" a US citizen and a non US citizen. The US citizen is living in the US, the non US citizen is living abroad. The LLC conducts business that is both connected to the US and not connected to the US.
What is the tax treatment of the non-US citizen regarding LLC's distributions? Can he be a salaried employee?
Any help will be greatly appreciated!!
2006-11-04 01:35:48 · 2 answers · asked by answersman_123 1 in Business & Finance ➔ Taxes ➔ United States
The non-citizen has U.S. source income and would have to file a non-resident 1040 topay tax on that income. The LLC might have a withholding requirement on the distributions. I would suggest that you check with a CPA who is familiar with this situation.
2006-11-04 01:48:40 · answer #1 · answered by waggy_33 6 · 0⤊ 0⤋
Did it, got rid of the non-us citizen,
Non US Citizens must have an ITIN. Must withhold federal taxes on all distributions to that shareholder at the corporate level --corporation is responsible to withhold.
Non-US Citizens must have a Green card to work in usa. wages are for us employees.
We got rid of Non-US and paid him a commission (indendent contractor rules worked for us) instead based on percertage of profits. The commission was tax deductible.
2006-11-07 03:10:24 · answer #2 · answered by dillon Y 3 · 0⤊ 0⤋