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Posted by Katie on June 12, 2007, 1:07 am
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> Katie wrote:
>>> 2. Do I have to pay federal taxes, state taxes or both
>>> (remember I am a non-US citizen residing abroad)?
>> Yes, both, and to all states where the LLC provides
>> services. You will have income effectively connected with a
>> U.S. trade or business, and income with a source in all the
>> states where the LLC's activities are taxable.
> Would a "foreign earned income" exclusion via form 2555
> apply to me? In a recent thread ("Schedule C Earned Income -
> Excluded as Foreign Earned Income"), the general consensus
> was that the OP (american citizen living in Japan and
> running his Delaware-based LLC from over there) would be
> entitled to a federal tax break.
>
> Would the same apply to a non-US citizen living abroad and
> partnering in a US LLC?
No, the IRC Sec. 911 exclusion would not apply to you for at
least two reasons: (1) it is available only to U.S.
citizens or residents; and (2) your income from this
activity would not be "foreign earned income" since it would
be earned in the U.S.
In the previous thread, the OP was working for his LLC in
Japan, so his income was earned in a foreign country.
Katie in San Diego
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