I am a alien non-resident of the United States. I want to expand my ecommerce operations, and because the vast majority of my customers are already in the US I plan on starting a LLC in Delaware. I understand that LLCs are pass-through entities, taxes-wise, however, does obtaining an EIN void this? Would I have then to file taxes for both the LLC and myself personally? Anyone with any experience regarding any of this?
2007-07-11 02:47:12 · 6 answers · asked by mighty_mind 1 in Business & Finance ➔ Taxes ➔ United States
EIN is an employer identification number used for reporting primarily payroll taxes paid to employees (it's also like a SS# used by other companies to uniquely identify you but that's kind of a secondary use.) The legal status of an LLC and the taxation of it (IE, you pass-through tax status) shouldn't be affected by an EIN.
(I run 2 S-Corps with pass-through status and have EIN's and employees -- I still pass-through income from the S-Corp into my personal taxes. So, legally, I don't have experience with an LLC. But I do know legally EIN's and corporate structures.)
2007-07-11 03:04:25 · answer #1 · answered by Jeff C 2 · 0⤊ 0⤋
Other folks have generally given you good answers on the pass-through status of an LLC. I'd ask a different question, though.
Why set up a US LLC in the first place since you do business on line? This would be a needless expense and could expose you to US tax liability. Since you can target your customers with an on-line presence from any place on the planet pretty much, why risk exposing yourself to US taxation when there's clearly no need to do so?
The same applies to any type of corporation as suggested (inadvisedly, IMHO) by another respondent.
2007-07-11 04:18:46 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
All the EIN does is give your tax entity a tax identification number. It is required if you have any employees, in the case of a sole proprietor.
Some tax entities are pass-through and some are not. The EIN has nothing to to with this.
2007-07-11 02:53:31 · answer #3 · answered by ninasgramma 7 · 1⤊ 0⤋
No, it doesn't void the pass-through status, and you have to have EIN if you have an LLC. As a non-resident alien you must have another person (who is a resident) to be your second partner.
2007-07-11 02:57:22 · answer #4 · answered by Kalistrat 4 · 0⤊ 1⤋
By default, a single-member LLC is taxed the same as an ordinary sole proprietorship. So, yes, any income would be subject to both income taxes and self-employment taxes.
2016-05-19 07:29:51 · answer #5 · answered by ? 3 · 0⤊ 0⤋
No - getting an EIN does not
Get a C-Corp thru Nevada
2007-07-11 02:52:40 · answer #6 · answered by Mike Frisbee 6 · 0⤊ 2⤋