As a non-U.S. resident with a U.S. LLC, there are several taxes you may need to consider, regardless of which state your LLC is registered in:
- Sales Tax / Gross Receipts Tax: Depending on the state where your LLC operates, you may be required to collect and remit sales tax if your sales exceed a certain threshold. These thresholds vary by state. For example:
- New Mexico: If your gross receipts exceed $100,000, you are required to pay gross receipts tax.
- Wyoming: You must collect sales tax if you have more than $100,000 in sales or over 200 transactions in the state.
- Florida: Sales tax must be collected if your remote business has over $100,000 in sales annually.
Make sure to check the specific tax regulations for the state your LLC is registered in to ensure compliance.
- Federal Income Tax: While LLCs are considered pass-through entities and do not pay taxes at the company level, your U.S.-sourced income may be subject to federal income tax. As a non-resident, you will need to report this income on IRS Form 1040-NR.
- State Income Tax: Many states impose state income tax on income earned from activities within the state. If your LLC generates income in any U.S. state, you may be required to file a state income tax return. However, some states, like Wyoming and Nevada, do not impose a state income tax.
It’s important to review any applicable tax treaties between your country of residence and the U.S. These treaties may provide exemptions or reduced tax rates on U.S.-sourced income, helping you avoid double taxation.
Incorporate Your LLC
Now that you have a clearer understanding of the tax obligations associated with owning a US LLC as a non-US resident, you may be ready to formalize your business. Incorporating your LLC can offer significant advantages and tax benefits. To make managing your LLC easier, we’ll connect you with an experienced accountant who can help you navigate taxes and compliance. Ready to start? Click here to begin the process today.
Disclaimer
This guide is for general informational purposes only and does not constitute tax advice. Tax laws are subject to change, and individual situations vary. We strongly recommend consulting with a qualified tax professional to receive personalized advice that fits your specific circumstances.