LLC And Foreign Privated Company
1. What are the tax considerations for the "Foreign private company" and for the LLC with a foreign member?
2. What are the the tax liabilities for an LLCinvolved in providing accounting services over the Internet?
1. Up to 90% tax plus penalties if you do it wrong (own a foreign company or trust), 30% if you do it right, as low as 4% for a genuine charitable foundation. With all due respect, if you have to ask the question you are not yet qualified to participate in non-US investments and companies.
2. The same as any other LLC, which depends on the type of taxation you elect, disregarded, partnership, or taxed as a corporation. Self Employent tax (up to the maximum amounts) will be charged on all income if you choose to have the LLC disregarded fro tax purposes. You may pay SE tax on partnership income depending on how active you are and you will pay between 15% and approximately 36% for corporate tax but pay SE tax only on your actual salary withdrawn from the LLC.
Hi Mantis
Thank you for the advice.
However I an not clear regarding my first question. A foreign company and myself are planning to form a LLC, what would be the tax considerations on the foreign company ( they are asking me to give them a clear picture before they agree) and if there would be any special tax considerations for the LLC for having a foreign member.
Thank for your reply. [ Edited by deba on Date 06/01/2005 ]