The tax system in the United States can be complex, especially for foreign entrepreneurs. As a company owner in the US, you may encounter taxes at federal, state, and local levels.
LLC Taxation
LLCs are subject to "pass-through" taxation by default: company income is directly included in the personal income tax of the owners.
US-Sourced vs. Foreign-Sourced Income
- Only your US-sourced income is subject to US tax
- Foreign-sourced income is generally not taxed
Important Tax Forms
- Form 1040-NR — Tax return for non-resident aliens
- Form 1120 — Corporation
- Form 1065 — Partnership
FATCA and Foreign Accounts
Due to FATCA, you may need to report your foreign bank accounts. Tax treaties can prevent double taxation in some cases.
Recommendation
Working with a professional CPA is strongly recommended to maximize tax advantages.