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-   -   LLC with one partner being a non US resident (https://britishexpats.com/forum/usa-57/llc-one-partner-being-non-us-resident-720282/)

ShelleyMan Jun 9th 2011 3:31 pm

LLC with one partner being a non US resident
 
Hi,

Does anyone know if you can open up an LLC in the US with one partner as a legal alien and the other based in Australia.

Also I understand the partner living in Australia could not claim a salary as he does not have a SSN, would he be able to take a dividend - or how else could he get his profit?

Thanks

Rete Jun 9th 2011 3:37 pm

Re: LLC with one partner being a non US resident
 

Originally Posted by ShelleyMan (Post 9422111)
Hi,

Does anyone know if you can open up an LLC in the US with one partner as a legal alien and the other based in Australia.

Also I understand the partner living in Australia could not claim a salary as he does not have a SSN, would he be able to take a dividend - or how else could he get his profit?

Thanks

Why would the Australian not be able to be compensated for being a partner and working in the LLC? They are working in Oz, not the US, even though it is a US limited liability company.

Peter Newton Jun 9th 2011 5:58 pm

Re: LLC with one partner being a non US resident
 

Originally Posted by ShelleyMan (Post 9422111)
Hi,

Does anyone know if you can open up an LLC in the US with one partner as a legal alien and the other based in Australia.

Also I understand the partner living in Australia could not claim a salary as he does not have a SSN, would he be able to take a dividend - or how else could he get his profit?

Thanks

From a tax perspective there's no issue with a partnership having a non-resident alien partner. The NRA partner will file a nonresident US tax return to report his/her share of the partnership profits. Check with an attorney in your state to make sure there's no issue in having a foreign owner of a LLC.

ShelleyMan Jun 9th 2011 7:42 pm

Re: LLC with one partner being a non US resident
 
I agree, I was not sure why we were told the Australian would not be able to get a salary and they were not sure about the dividends, they said the rule is you have to have a visa and SSN to draw a salary in the US. We've put a call into someone else to see what they say.

ShelleyMan Jun 9th 2011 7:45 pm

Re: LLC with one partner being a non US resident
 

Originally Posted by Peter Newton (Post 9422470)
From a tax perspective there's no issue with a partnership having a non-resident alien partner. The NRA partner will file a nonresident US tax return to report his/her share of the partnership profits. Check with an attorney in your state to make sure there's no issue in having a foreign owner of a LLC.

Thanks for the info - so the Australian would say take his profit of $1000 and would then file a nonresident tax return (assume annually) and be told what to pay, it would not be the company who would have to pay the tax on his behalf.

Peter Newton Jun 9th 2011 7:54 pm

Re: LLC with one partner being a non US resident
 

Originally Posted by ShelleyMan (Post 9422681)
Thanks for the info - so the Australian would say take his profit of $1000 and would then file a nonresident tax return (assume annually) and be told what to pay, it would not be the company who would have to pay the tax on his behalf.

Right- the partnership itself does not pay income tax. The individual partners have the liability.

meauxna Jun 9th 2011 8:55 pm

Re: LLC with one partner being a non US resident
 

Originally Posted by ShelleyMan (Post 9422675)
I agree, I was not sure why we were told the Australian would not be able to get a salary and they were not sure about the dividends, they said the rule is you have to have a visa and SSN to draw a salary in the US. We've put a call into someone else to see what they say.

Who told you that in the first place and who is the 'else' are you calling?

ShelleyMan Jun 9th 2011 10:08 pm

Re: LLC with one partner being a non US resident
 

Originally Posted by meauxna (Post 9422829)
Who told you that in the first place and who is the 'else' are you calling?

A lawyer and accountant, we have found a corporate lawyer who does international businesses now, so we will be meeting with him.

penguinsix Jun 9th 2011 11:12 pm

Re: LLC with one partner being a non US resident
 
There may also be some reporting requirement if your company is more than 25% owned by a foreign national. The LLC has to report this I think. Form 5472 I believe.

ShelleyMan Jun 10th 2011 2:47 am

Re: LLC with one partner being a non US resident
 
Thanks for all the replies and helpful information, it's much appreciated.


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