Posts filed under the Nonresidents category.

Single Member LLCs

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A single member LLC is disregarded for US federal income tax purposes. Income, gain, deduction and loss of a single member LLC is reported directly on the income tax return of its owner. The single member LLC does not file an income tax return with the IRS. A US Person who is the sole owner of the LLC will report all worldwide income,gain, deduction and loss on her income tax return. A non-US Person that owns a single member LLC doing business in the US will be treated as doing business in the US,

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Income Tax for Domestic Corporations

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A foreign business which incorporates in the US and US corporate subsidiaries of foreign businesses are US Persons for US tax purposes subject to US income tax on a worldwide basis. Corporations generally file a corporate tax return, such as Form 1120 “U.S. Corporation Income Tax Return” with the IRS. In general, the income of a corporation is subject to two levels of tax. First, net income (both ordinary and capital) of a corporation is taxed at the entity level at graduated rates which presently range from 15% to 35%.

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