Do you pay any Federal tax with Delaware LLC as a non resident?

[banafinfodafuggiano]

As per the title, do we have to pay any FEDERAL tax on our 100% foreign income if we are a non-US resident directors
of a Delaware company?

I know we won't have to pay any tax in Delaware in this scenario, but what about Federal tax?

 

[Sols]

Maybe but usually not.

While generally very low risk of being triggered in the typical‌ setup of non-resident aliens owning US LLCs, read up on ECI:

https://www.irs.gov/individuals/international-taxpayers/effectively-connected-income-eci
Assuming it doesn't‍ opt to be taxed like a corporation, the LLC itself isn't taxed. Its members are⁠ taxed on personal income. Managers are not taxed unless they are also members or are⁤ paid a US salary.

 

[dvm]

Does having a US manager without⁤ a salary make the above mentioned income ECI (or the whole LLC a subject to⁣ ETBUS for that matter)?

 

[JustAnotherNomad]

No idea, but I would suspect that the critical question is whether he’s a “dependent⁠ agent,” meaning if he only/mostly works for you.

 

[Fulton Abraham Sanchez]

If the LLC holds one foreign member only,⁤ there is no tax to pay. If there are more than one partner, they are⁣ both taxable regardless of the source of income.