eBusiness TAX for non US Citizen?
Hello Experts!
I am a green Card holder but not a US Citizen. Soon I will be launching an internet based eBusiness with clients from all over the world.
Regarding payment of tax on earned income form the web site:
In my country of origin I have a registered LLC . The tax rate there is a flat 10%. I also have a registered LLC in the US – the progressive tax rate here might well reach 35-40%
At present I live in the US but also have a legal address in my old country too.
I am a Green Card and a US SSN holder and also have a Passport and a SSN from my country of origin.
I pay Federal and State taxes in the US.
My question is for the new startup business – how to best decide:
1. Which LLC to use to register the new venture with?
2. Where to register the headquarters of the eBusiness – my old country or the US?
3. Where to open the LLC’s bank account to link to my eBusiness’ web site?
I am looking for legal and legitimate solution with a minimum taxes paid.
I appreciate your advice.
Thanks.
Tags: card holder, citizen, country of origin, ebusiness web, green card, legal address, minimum taxes, passport, progressive tax, startup business, state taxes, tax rate
January 26th, 2010 at 04:11
are you actually operating this business from a location in the US?
your ‘tax home’ is the place where you work
and why are you wanting an LLC? you can report an LLC in any of three ways, a Sole Proprietor, a Partnership or a Corp–you apparently are not a Partnership, so that leaves the other two
you will pay to have the LLC established, you will pay a minimum tax for that LLC every year it is functional and you need to determine the method you plan to operate(as noted above)
is your SSN of your country accepted in the States?
January 26th, 2010 at 04:11
You are resident of the U.S. If you live in the U.S., do everything in the U.S.
Since you are working from the U.S., it will be considered U.S. income.
January 26th, 2010 at 04:11
Since you have a Green Card you are a Lawful Permanent Resident. You are therefore subject to US tax laws on your world-wide income regardless of where you reside. The ONLY way for you to avoid US taxation is to surrender your Green Card and leave the US.
As to your other questions:
1. Does not matter. It won’t affect your taxes.
2. Does not matter. It won’t affect your taxes.
3. Does not matter. It won’t affect your taxes.
If you are paying foreign income taxes on this income you can claim a credit on your US return using Form 1116 IF you file as a Sole Proprietor or single-member LLC. If you file as a C-Corp the corp gets the credit for the foreign taxes. They won’t pass through to your personal return.