Foreign Owned Multi-Member LLC - Pay No Taxes!!!

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  • Опубліковано 28 лип 2024
  • For tutorials on how to complete Schedule K-2 & K-3 for foreign-owned partnerships:
    Foreign Branch and No ECI: • Tutorial 1 - Schedule ...
    Foreign DRE with US ECI: • Tutorial 2 - Schedule ...
    US LP Investment Partnership: • Tutorial 3 - Schedule ...
    Nonresident entrepreneurs can open a U.S. multi-member LLC and not pay any U.S. taxes, so long as the entity is not engaged in U.S. trade or business (USTOB) and has no effectively connected income (ECI).
    In this video, I outline the rules surrounding USTOB and ECI, and why a nonresident owned LLC will likely not have to pay any U.S. taxes so long as all of their operations are conducted outside of the U.S.
    Check out Part 2 for the Form 1065 reporting when the LLC owes no taxes:
    • Foreign Owned Multi-Me...
    For a larger database of tutorials, please visit our website and search for your question:
    knottlearning.com/
    DISCLAIMER: The information provided in this video may contain information about tax, financial, and legal topics. Such materials are for informational purposes only and may not reflect the most current developments. These informational materials are not intended and should not be taken as tax, financial, or legal advice. You should contact an advisor to discuss your specific facts and circumstances. Self-help services may not be permitted in all states or jurisdictions. The use of these materials does not create an attorney-client or confidential relationship. This video does not include information about every topic or issue related to these informational materials.
    #MultiMemberLLC #USTOB #ECI

КОМЕНТАРІ • 30

  • @jc_duenas
    @jc_duenas Місяць тому

    What a tremendous service you provide Jason, can't get enough of your videos, thank you so much!

  • @shoaibahmed81
    @shoaibahmed81 Рік тому +2

    thanks a bunch man really help me as an upcoming CPA who deals with bunch of foreign residents with US LLC. keep it up

    • @JasonDKnott
      @JasonDKnott  Рік тому

      I'm glad the videos are helpful. Good luck on the CPA exam!!

  • @moisesmendoza395
    @moisesmendoza395 2 роки тому +5

    You saved my life!

  • @ianmensik8245
    @ianmensik8245 8 місяців тому

    Good stuff, thanks!

  • @toobakhan3103
    @toobakhan3103 4 місяці тому

    Important at 18:20

  • @ScottJLetourneau
    @ScottJLetourneau Рік тому

    Great video Jason; I love the detail. I have a question about the USTOB status. If you are a non-resident and selling products to U.S. customers and title passes in the U.S., is it possible the sale of the product is taxable in the U.S. even if it did not rise to the level of a U.S. trade or business (under IRC Section 861)?

  • @andymoskera4130
    @andymoskera4130 5 місяців тому

    Thank you very much for this helpful information. My question is: what about a LLC of 2 members where one member is an US resident and the other one is not?

  • @gabrieljenik
    @gabrieljenik Рік тому

    Thanks for the video! Some people have argued that distribuitons should be withholded payments (They say distributions are similar to dividends which are FDAP). Thoughts?

  • @jamsid33
    @jamsid33 2 роки тому +2

    very interesting

  • @franciscoandino1695
    @franciscoandino1695 Рік тому +1

    Great information. Situation: Colombian residents open a single-member Florida LLC to receive passive income from Real Estate investment. Which tax do returns need to be filed? Thanks

  • @technologyworld5687
    @technologyworld5687 2 роки тому +2

    What if you have a non-US multimember LLC but didn't earned even a dollar?

  • @luismart7714
    @luismart7714 2 роки тому +1

    Great video. You talk about the mix of US sales vs Foreign sales as potentially being a problem in regards to claiming non-USTOB status. Is that a % thing regardless of the amounts? Can you shed more light into this? Thanks.

    • @JasonDKnott
      @JasonDKnott  2 роки тому +1

      Both factors are relevant. Gross dollar value of sales in the U.S., and the relative percentage of U.S. sales versus foreign. We will be adding more videos covering USTOB risks, so stay tuned!

  • @gabrieljenik
    @gabrieljenik 2 роки тому +3

    Great Video! Same would apply for SM LLC, right?

    • @JasonDKnott
      @JasonDKnott  2 роки тому +2

      Yes, so long as the disregarded entity is not engaged in U.S. trade or business and has no ECI.

  • @danbaker8490
    @danbaker8490 2 роки тому +1

    Fantastic video Jason, 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, does the fact that the entity has some resident owners mean that all the income is ECI even though all the operations and work is done by employees in other countries, and that I have to pay taxes on my share of the profits reported in my K1? Thanks :)

    • @EricNation
      @EricNation Рік тому

      Hi Jason, also curious on the answer to Dan Baker's question. I have the same question as him, but in my situation ... I am the only US Citizen that's a member of the LLC, but I don't even live in the US anymore.

  • @baldfvi
    @baldfvi Рік тому

    Jason, what happens if I created my LLC multi member where I (non resident) own 99% and my friend just 1% (I know it's not usual, it was a favor lol but he is resident) June 2022. The LLC has not started doing business, no sales nothing just expenses like Google Workspace, monthly bank fees, cell phone bills, I plan to start selling soon in the coming months, how do I proceed with this 1065 Form and specially the K1's if I'm not a resident and the other member ir?

  • @juancarloscaceres52
    @juancarloscaceres52 Рік тому +1

    Thanks for the video, if I am a foreigner owner of a foreigner multimember LLC, do members have to issue the ITIN numbers?

    • @JasonDKnott
      @JasonDKnott  Рік тому

      Foreign members aren't required to have an ITIN. However, if the partners are allocated effectively connected income that is subject to withholding taxes, it's recommended to have ITINs for the Forms 8805 and in order to file Form 1040-NR

  • @SG-tz7jj
    @SG-tz7jj 10 днів тому

    Does a foreign owned llc engaged in stock investments is it liable for estate taxes?

  • @lgesystemsmultiservices9328
    @lgesystemsmultiservices9328 4 місяці тому

    Hello. I would like a consultation, already sent you an email, and left a voice mail but I haven't heard from you. thanks

  • @SwampDonkeyHomestead
    @SwampDonkeyHomestead Рік тому

    US National ? Having an LLC