Taxes on non US-resident LLC owner?


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I am working on launching an online product site and registering it as an LLC in Delaware. I am a non-US resident and will get the company registered through LegalZoom.com or Incorporate.com. It would be a single-owner LLC and payment would only be accepted through Paypal/Google Checkout (not through Bank account). I am wondering how much tax I would be liable to pay?

As per my research, only state taxes are applicable on LLC while the owner of LLC pays income taxes on revenue he/she earns through LLC company. In my context, I am not a US-resident - would I still need to file my tax returns? (logically, I think I should) and what would be tax rates?

Your help is highly appreciated.

LLC Entrepreneurs Tax

asked Jan 30 '12 at 19:48
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Ali
179 points
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1 Answer


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Depending on the state you will have to pay the taxes to the rate might be progressive for Delaware depending on how much you report you may pay from 0 to 5.95%.

Normally in the cases where a person is not a resident of the state you fill out a non-resident form of the tax return, where you can get credit for state taxes paid in another state but since you don't reside with the US or it's territories you'll just have to pay the tax.

And while the LLC only pays state taxes. The Owner will have to pay both federal and state. I think there was a question here on the forms one needs to fill out and you will probably need IRS Form 1042 But I would find a CPA that has done these for awhile and confirm this.

answered Feb 1 '12 at 04:39
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Karlson
1,779 points

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