How does a Resident Alien, owner of a multi-member LLC report taxes? I do not work in the US.

Asked almost 2 years ago - Orlando, FL

I am the owner of a multi-member LLC created in Florida; Let's call it XYZ LLC. I am a resident alien because I do spend a few months in Florida for another business for which I have a Visa for. I do not work for XYZ LLC while in the US, only when I am in my home country. I do have an SSN (obtained after F1 OPT); as far as I know this SSN will never expire and can be used for tax filing.

As far as I know, I am treated as a US citizen for tax purposes. Therefore the following forms will be used 1065, 1065 K1s, 1040, 1040 Schedule E, 1040-ES.

The business is made up of several websites generating affiliate commissions. As far as I know this is classified as "Foreign Sourced Income" and NOT "US Sourced Income" since I am working from my home country. Does it make a difference?

Additional information

According to Google AdSense, any income generated by AdSense is foreign sourced income.

It's my understanding this is a complex case and the law isn't clear on online businesses.

Attorney answers (2)

  1. Nishat Azam

    Contributor Level 11

    Answered . If is a multi-member LLC as you mentioned, it is not treated as a disregarded entity, like a single member LLC would which means that instead of income reporting on a single member's personal taxes, the LLC itself would need to pay taxes. Does you LLC have a tax id #? As Counsel mentioned, the best thing to do is speak to a Tax/Business Attorney locally. Good luck to you.

    DISCLAIMER: This answer is provided solely for informational purposes only. This answer does not constitute legal... more
  2. Todd Matthew Heine

    Contributor Level 13


    Lawyer agrees

    Answered . Looks like you have done lots of your own homework: good job!

    If you are receiving income from the work you are doing abroad for this business, you are generally going to get taxed on that income in the place where you work. How do you get paid from your LLC? Management fees? This might reduce your tax liability and make life easier.

    On the other hand, does the LLC make a profit and distribute profits to you? This might change things. I'm guessing the LLC is a Florida LLC?

    You'd probably do best to have consultations with a couple lawyers to get a better grasp of your specific details. In any case, your LLC will likely need to file for taxes.

    Total Mobility Law is an international law firm that lets companies do global business with the knowledge and... more

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