Tax Laws for Foreign-Owned Multi-Member LLCs - 100% Accurate!

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  • Опубліковано 25 сер 2024

КОМЕНТАРІ • 87

  • @delanotherebel
    @delanotherebel 2 роки тому +2

    Love this video. Gave me a lot of clarity. Would love to get a copy of the memo. Thanks for sharing all this information and in such an easy to understand manner James. 👍

  • @samirsamir7779
    @samirsamir7779 3 роки тому +1

    sincerely the channel is more than helpful , thank you so much . keep providing more vids please on the same topic ( LLC , foreigners , ecommerce , dropshipping ...etc) , best...

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому +1

      Hi! Thanks for the support, subscribe for more

  • @rizvithajudeen6030
    @rizvithajudeen6030 3 роки тому +1

    Hello, very useful video. Not many vid's available on foreign owned multi member LLC. For you to do one is great. More on topics e-commerce, dropshipping..etc will be much appreciated. I'm interested to learn more on filing services for foreigners.

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      So glad it helped, thanks for the support, if you haven't, please like and subscribe for more content.
      If you have further inquiries, you can send an e-mail to support@jamesbakercpa.com or you can check our official website www.jamesbakercpa.com

  • @jacintocho5164
    @jacintocho5164 3 місяці тому

    Man your help is so great! Your job is amazing! Thanks a lot!

  • @agchain6554
    @agchain6554 3 роки тому +2

    Thank you, it was very helpful !!!

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      So glad it helped, thanks for the support, if you haven't, please like and subscribe for more content.
      If you have further inquiries, you can check our official website www.jamesbakercpa.com

  • @ricardoquiroz2624
    @ricardoquiroz2624 Рік тому +1

    Great video, looking forward for our call

  • @davidwilliamscpa4365
    @davidwilliamscpa4365 3 роки тому +1

    Awesome

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      Hi! Thanks for the support, subscribe for more ☺️

  • @currybliss5018
    @currybliss5018 3 роки тому +1

    Its really good video for a layman like me.

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      Glad to hear that! Hope this help you! Don't forget to subscribe and turn on your post notifications on to stay up to date with us!

  • @davidmelian9404
    @davidmelian9404 3 роки тому +2

    Very informative the video but it does not specify how income generated in the U.S. (i.e. I sold 10 hours of consultancy to a US company) will be treated. Per what Jim wrote in this memo should be treated as ECI so you will have to withhold tax anyway.
    I understand that the only way for a Foreign Multi Member LLC to PAY NO US Taxes is only to have income from other countries.

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      Hello, we invite you to send any doubt to the e-mail with your inquiry to support@jamesbakercpa.com, our team would search for it and let you know.

  • @troyliu99
    @troyliu99 Рік тому

    Best video

  • @AntonMDev
    @AntonMDev 3 роки тому +1

    Awesome video Jim. Thank you very much for sharing all these information. Please, is it possible to receive a copy of this memo? Thanks

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      Hello! Thanks for the support, subscribe for more. Sure, just send an email to support@jamesbakercpa.com and we'll send it to you.

  • @luiscardenas9927
    @luiscardenas9927 3 роки тому +1

    I am Venezuelan and I have an LLC partnership in New Mexico with another venezuelan too. We both live in Venezuela. We own an ecommerce store (amazon). We don't have any employees nor warehouse in the US, but we use a prep center facility (third party) to then send the products to amazon warehouse. So, the question is: do we have to pay taxes as individuals? or the company itself? or none?. Please appreciate if you could answer and help us out.
    Great video btw.

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      Hello Luis, sorry for the late response but if you need any assistance still we invite you to send any doubt to the e-mail with your inquiry to support@jamesbakercpa.com, our team would search for it and let you know

  • @dianaelisafloresgonzalez3072
    @dianaelisafloresgonzalez3072 3 роки тому +3

    Question, having an Ecommerce store online (Amazon, Shopify, ebay, etc) having source income but no US employees at all and the products are imported from other countries like China, is it considered effectively connected income?

    • @jimbaker
      @jimbaker 3 роки тому +1

      I say no.

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      Hello Diana, If you have another question, you can send an e-mail to support@jamesbakercpa.com or you can check our official website www.jamesbakercpa.com

    • @jimbaker
      @jimbaker 3 роки тому

      Where do you keep your inventory?

  • @stevesmith-uq7qz
    @stevesmith-uq7qz 3 роки тому +1

    Great video. Thanks for putting it together and providing clarity. I have a clarifying question...A multi-member LLC has one U.S. member, one foreign member, and no employees or agents. If the two members collectively provide consulting services to non-US clients (with the US member working in the US and the foreign member working in a foreign country), would the partnership be Effectively Connected Income and foreign partner be subject to US taxes?

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      We would love to answer your questions but it is best to send a email with your inquiry to support@jamesbakercpa.com

    • @jimbaker
      @jimbaker 3 роки тому

      Looks like you would have no US trade or business.

  • @muhammadfaheemrao6156
    @muhammadfaheemrao6156 2 роки тому +1

    I had incorporated Delaware Partnership LLC with two Indian partners. I am getting revenue from
    - Google Adsense
    - Google App Store Sales
    - Apple App Store Sale
    - Some Subscription payments from Stripe
    - 1-2 customized software work payment from Outside US
    What I need to know what the Tax Liabilities are my company own, like gross receipt tax, sales tax, and Income Tax etc.
    What are the dates for these taxes and how we can file them?
    I would again request you please take fee for the time you are putting in these replies.

    • @JamesBakerCPA
      @JamesBakerCPA  2 роки тому

      Hello Muhammad, thanks for watching my videos! Please send an email to support@jamesbakercpa.com

  • @talash1751
    @talash1751 5 місяців тому

    @james can you tell if foreign partner is 3rd party seller of Amazon and selling through Amazon FBA services that that income will come under this umbrella?

  • @sproutthailand59
    @sproutthailand59 3 роки тому +1

    Can you please link your video about single LLC owner ? I couldn’t find it on your channel page.
    Thank you 🙏

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      Hello!! Sure, we have some videos about a sole proprietor LLC, you can take a look at the following links:
      ua-cam.com/video/eAJWjjjA6uw/v-deo.html
      ua-cam.com/video/CVflzOd85is/v-deo.html
      ua-cam.com/video/FRrGrB3e4-g/v-deo.html
      ua-cam.com/video/Pbruj6vOISc/v-deo.html
      But, if you have more questions, you can send an email or schedule a call to support@jamesbakercpa.com

  • @sarahsuarez7672
    @sarahsuarez7672 Рік тому +1

    Thank you for the video!! How can I access your report?

    • @JamesBakerCPA
      @JamesBakerCPA  Рік тому

      Hi Sarah. Thank you for watching! Please, write to support@jamesbakercpa.com, so we can assist you. Have a great day!

  • @andresa1963
    @andresa1963 3 роки тому +1

    Interesting, I am a US citizen now living in Santiago, Chile. My business partner and myself want to open an LLC in the States. My business partner wants to enter the LLC as a corporation, and looking for information on this, there is nothing anywhere to explain the process of how to do it. That's interesting.

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      We are really happy to read that and be helpful for you and your business partner, if you have any doubt you can send an e-mail to support@jamesbakercpa.com or you can visite our official website www.jamesbakercpa.com

  • @nickluallen5229
    @nickluallen5229 3 роки тому +1

    What if the service performed overseas is a tour operator with US clients? Can you receive payments from customers via a US bank account and transfer to a foreign bank account? Does the bank account have to be created under the foreign operated LLC with US citizen customers ?

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      Hello there, sorry for the late response but if you need any assistance still, please contact us at support@jamesbakercpa.com!

  • @melhoresprodutos8899
    @melhoresprodutos8899 2 роки тому +1

    Hi, i live abroad USA and if i open LLC in NM for job with Tax Sales of County ( Many States) is better open with Multi Member LLC or Solopreneur, i listen the IRS is more hard with disregard company the only one member, is this correct?

    • @JamesBakerCPA
      @JamesBakerCPA  2 роки тому

      Hi Melhores, Please schedule a FREE call with one of our associates, so we can help you out. On this call, we will do our best to answer your questions and explain how we can help you succeed. Here's the link: lt.jamesbakercpa.com/jbytcomment Have a nice day!

  • @censon
    @censon 3 роки тому +1

    Would a JV agreement with a sales and marketing company trigger the need to lodge withholding taxes? The JV requires the LLC to share the profits from the sale of services which are delivered off shore.

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      We would love to answer your questions but it is best to send a email with your inquiry to support@jamesbakercpa.com

  • @mrkk3724
    @mrkk3724 2 місяці тому

    Hi, Does a multi-member foreign LLC required to file 1065 if there is no business activity except 1099INT Box1 income received for a new bank account opening cash amount? no earning from business. Only moved money from my personal account to my business account and paid some bills to complete the required bank account opening bonus transactions.

  • @janoleroux6310
    @janoleroux6310 3 роки тому +1

    Just a clarification on the video I'd like to understand in more depth. When you say: "While the results would be reported on Form 1065, no withholding tax would be required from the LLC as long as there is no US Source Income (as described above)." Does the word "results" in this context indicate an LLC may report the actual income that does NOT qualify as US Source Income directly on form 1065? OR If I understand the video correctly, it would just be blanked simply because sources of income do not qualify as US Source Income?

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      Hello there, sorry for the late response but if you need any assistance still, please contact us at support@jamesbakercpa.com!

  • @ricardoramirez-io7qq
    @ricardoramirez-io7qq Рік тому

    great information, what if i open an llc in wyoming for a non resident and a bank acount linked to it and i charge custumers outside of us once the money is in the bank can i spend it in american soil or i have to transfer it to a foreing bank acount what if i want to spend in personal stuff like a car or restaurants etc will that triger a irs resident taxation?

  • @amralzanatiemanaccounting2970
    @amralzanatiemanaccounting2970 2 роки тому +1

    What if there is a real estate company outside of USA want to open an llc in USA to sell overseas real estate and collect money. Are they going to pay taxes?! Or just file 1065 tax return and no personal taxes for foreign members.

  • @Mas5151515151
    @Mas5151515151 3 роки тому +1

    Hey, great video, James! One question: if I have a foreign-owned multi-member LLC do I need to provide form W9 or W8BEN to my customers? I would guess W9 since multi-member LLCs are treated as US legal persons by the IRS, right?

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      Hello, at this moment we do not manage an answer, but if you like to send an e-mail with your inquiry to support@jamesbakercpa.com, our team would search for it and let you know

  • @alleyhudsonn
    @alleyhudsonn 3 роки тому +1

    If both the members of a US LLC are non US Residents... Do they still need to file form 5472? Please reply. Cannot find the answer to this question anywhere.

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      We would love to answer your questions but it is best to send a email with your inquiry to Team@jamesbakercpa.com so we can help you more widely

  • @JoseLopez-et6gn
    @JoseLopez-et6gn 3 роки тому +1

    A family member wants to open a business in the US but he wants me to be a partner. I’m a US citizen, should I open the company under my name and give him 50% or should I let him open it and give me 50% is there any difference? Me owning it as a US citizen or him owning it as a foreign

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      Hello, at this moment we do not manage an answer, but if you like to send an e-mail with your inquiry to support@jamesbakercpa.com, our team would search for it and let you know, or you can check our official website www.jamesbakercpa.com

  • @angelavelasquez4013
    @angelavelasquez4013 3 роки тому +1

    Hi James how can I reach you? I need an appointment

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      Hi Angela! Hope you're good. We need more information to help you out. You can schedule a free call with one of our associates by following this link: calendly.com/supportjbcpa/30min

  • @currybliss5018
    @currybliss5018 3 роки тому +1

    Hi, I am not from the United States. We want to import in to United States and using US warehouse, we want to sell it in the US. We have tied up with forwarders, Warehouse etc. We will be operating from outside of the US. Under the circumstances, do we have to pay Multimember LLC tax and Individual tax? If we open in CA or NJ, do we need to pay tax? If we open in Delaware or Wyoming our Tax liability?

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      Hello! We would love to answer your questions but it is best to send a email with your inquiry to support@jamesbakercpa.com so we can help you more widely

  • @orielmor-liveformor5809
    @orielmor-liveformor5809 3 роки тому +1

    Hey, Thank you for the video. I'm kind of confused as to what trade or business means. If i sell a product that is being shipped from China, australia or canada to the U.S., is that considered trade or business?

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      Hello! Hello, at this moment we do not manage an answer, but if you like to send an e-mail with your inquiry to support@jamesbakercpa.com, our team would search for it and let you know

  • @eiba6528
    @eiba6528 Рік тому

    That means we don't have to apply for ITIN for the members correct?

  • @centro_creatividad
    @centro_creatividad 2 роки тому +1

    What you put is for the year 2019, for the year 2022 it seems that it is not valid because in the IRS publication there is no such exception. MLLCs whose partners are foreigners have to pay taxes. I have a MLLC that has been inactive for many years and has done absolutely no business but in good standing. This year I have finally opened an account in the USA and the MLLC is not going to do any business within the USA and we only provide personal services from outside the USA but even so the accountant tells me that although it has no business activity in the USA I do have to pay taxes and file the 1040NR that only single owner LLCs are exempt and file the 5472. Is that true? Because if true, your video would be out of date and could lead to serious errors with the IRS. Can you be sure that what you say in the video is still valid in 2022? Please answer this question as many non-resident foreigners are being cheated by accountants who tell you one thing and the opposite in order to make money.

    • @JamesBakerCPA
      @JamesBakerCPA  2 роки тому

      Hi Jesus, thank you for reaching out. Please write to support@jamesbakercpa.com so we can help you. Have a great day!

    • @julieb9630
      @julieb9630 Рік тому

      very good question. Did you get an answer or clarify this question? I have the same doubt, I will appreciate if you can share it please.

    • @dagoat2241
      @dagoat2241 Рік тому

      @@JamesBakerCPAis it possible to answer his question here in the public forum so everyone can see? thanks

  • @danbaker8490
    @danbaker8490 2 роки тому

    Fantastic video James, thanks! Quick question: In a multi-member LLC, If I am a non-resident alien owner but the other 2 owners are US citizen residents, and if the business is an outsourcing company with no office or employees in the US and all work being done remotely from other countries, do I have to pay taxes on my share of the profits reported in my K1? Thanks :)

    • @JamesBakerCPA
      @JamesBakerCPA  Рік тому

      you don't but your partners do, in that case is a little hard to provide guidance without the bigger picture, to help you schedule a free call at:
      lt.jamesbakercpa.com/jbytcomment

  • @yeseniamurillo4725
    @yeseniamurillo4725 3 роки тому +1

    Hi! I am considering opening a multiple member/partnership LLC. I live in USA and my prospective business partner lives in Mexico. Services offered in USA consists doing nails to clients(nail salon).
    My prospective business partner is not an USA resident nor USA citizen. Your video is very informative but I am still confused on whether I would have to withhold taxes when paying my business partner? Please help? Also does the business partner from Mexico has to be included on the business bank accounts here in USA ?
    This seem to be very complicated😳
    Thank you for your help!

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      Hello Yesenia! We would love to answer your questions but it is best to send a email with your inquiry to Team@jamesbakercpa.com so we can help you more widely

    • @yeseniamurillo4725
      @yeseniamurillo4725 3 роки тому

      @@JamesBakerCPA thank you for replying back to me. The e-mail does not work, I got a rejected notice.
      Any other e-mail ?

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому +1

      @@yeseniamurillo4725 Hi Yesenia! Try with this one support@jamesbakercpa.com

  • @dianaelisafloresgonzalez3072
    @dianaelisafloresgonzalez3072 3 роки тому +1

    For foreign multi member LLC, if we have EIN (for the LLC), do each member of the LLC need tax id/ITIN?

    • @jimbaker
      @jimbaker 3 роки тому +1

      Nope dont need that

    • @jimbaker
      @jimbaker 3 роки тому

      @@leonardcamacho I have electronically filed partnership returns without the partners ITINs. The position is that the income isn't subject to US tax anyways.

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому +1

      Hi Diana, If you have further inquiries, you can send an e-mail to support@jamesbakercpa.com

    • @julieb9630
      @julieb9630 3 роки тому

      @@jimbaker thanks, but the partners required to file a form 1040NR (non-resident aliens) and need an Individual Taxpayer Identification Number (ITIN) when they are required to file a U.S. tax return with the Internal Revenue Service (IRS). Could you confirm?

    • @julieb9630
      @julieb9630 3 роки тому

      @@jimbaker "The partnership isn´t subject to US tax", but An LLC is a pass-through tax entity. Instead, the profits and losses of the business pass through to its owners, who report them on their personal tax returns, and for personal return need a ITIN.

  • @randomjonc
    @randomjonc 3 роки тому

    Hi, I am a little confused with your statement:
    "Per code section 864(c)(1)(B) generally, in the case of a nonresident alien individual not engaged in a trade or business within the United States during the taxable year"
    If we own a multi-member LLC, why wouldn't you consider the NRA individual engaged in a business within the USA? The LLC is registered within the USA, same for bank account for example, so shouldn't we consider the NRA as engaged in a business within the USA by owning an LLC there?
    That would be very nice if you could clarify. Thank you very much.

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      The courts have clarified that just owning an llc and having a bank account wouldnt be considered trade or business on their own

    • @randomjonc
      @randomjonc 3 роки тому

      @@JamesBakerCPA Thanks for your comment. On the IRS site they also state the following: "If you are a member of a partnership that at any time during the tax year is engaged in a trade or business in the United States, you are considered to be engaged in a trade or business in the United States."
      So a partnership who has US clients would be engaged in a trade or business? So as a partner, EIC would apply?

    • @theanneedit5385
      @theanneedit5385 3 роки тому +1

      @@randomjonc were you able to clarify that part? My CPA also stated the same to me, justifying my income was ECI

  • @chrave1956
    @chrave1956 10 місяців тому

    I know this is free professional commentary…but it could have been much more simply organized..sorry.

  • @samirsamir7779
    @samirsamir7779 3 роки тому +1

    sincerely the channel is more than helpful , thank you so much . keep providing more vids please on the same topic ( LLC , foreigners , ecommerce , dropshipping ...etc) , best...

    • @JamesBakerCPA
      @JamesBakerCPA  3 роки тому

      So glad it helped, thanks for the support, if you haven't, please like and subscribe for more content.
      If you have further inquiries, you can send an e-mail to support@jamesbakercpa.com or you can check our official website www.jamesbakercpa.com