How Is a Foreign LLC Taxed in The US? US LLC vs. Foreign LLC (Foreign Owned LLC Taxation)
Channel: Esquire Group
Date: 2021-07-14

How Is a Foreign LLC Taxed in The US? US LLC vs. Foreign LLC (Foreign Owned LLC Taxation)

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Do not make the mistake of thinking that foreign LLCs are taxed the same as US LLCs—they’re not! It’s a mistake that could come with adverse tax consequences and penalties.

To get a better understanding of how foreign LLCs are taxed, it’s important to first understand the basics of how US LLCs are taxed.

The default taxation of a single-member LLC (one owner) is that of a disregarded entity. The default taxation of multi-member LLCs (partnership) is that of a partnership. In both cases there is no entity-level tax and the owners/partners report the LLCs income on their returns. But because the LLCs are considered an “eligible entity” they can elect to be taxed as corporations (C-Corp or S-Corp), if desired.

00:00 Intro
00:14 Disclaimer
00:34 Common Misconception
01:14 Taxation of Domestic (U.S.) LLCs
04:45 Taxation of Foreign (non-U.S.) LLCs
10:54 The Potential Dangers
11:35 Pro Tip

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About Jimmy Sexton:

Hi! I am Jimmy Sexton, LL.M. - Founder & CEO of Esquire Group. I founded Esquire Group with the objective of helping and inspiring wealthy families, investors, entrepreneurs, and high-level executives obtain and gain control over and protect their wealth, via strategic wealth planning.

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Disclaimer:

This video is prepared for educational purposes only. This video is not legal, tax or any other type of advice. Each individuals’ circumstances are different, you should seek legal and/or tax advice to address your specific situation and any questions you may have.