Virtual office and permanent establishment

[Junker]

Hello.
I have a single-member LLC in USA Wyoming, I am not US-resident and I never been in USA, also i don't have any employee in USA.
If i don't have an office or Permanent Establishment in USA then i don't have to pay any taxes in USA.
But i have a virtual office in USA (WYOMING VIRTUAL OFFICE ”“ WYOMING NEXUS), will IRS count it as a Permanent Establishment?

 

[Sols]

As long as the LLC is treated as a tax neutral pass-through entity (which is‌ standard), it doesn't matter for US tax purposes whether the company is considered tax resident.‍ The entity itself is not taxed; its members are, and they are taxed on personal⁠ income. And if you yourself aren't resident or citizen in the US, you would under⁤ most normal circumstances not be liable for any income tax in the US.

The exception⁣ to this is if your company does business within the US. The law is unclear⁢ on this, courts haven't been consistent enough, and enforcement is rare for foreign-owned LLCs, but︀ there is a small risk the IRS determines that you run a US business and︁ your personal income is subject to US personal income tax.

 

[Perry8]

This is very accurate. It should be added that the criteria is whether your business︃ has a local presence or not. Doing business in the US (selling to US customers)︄ has traditionally not been enough to declare a local precense, but many experts thinks that︅ the IRS will tighten this screw.

This is also the reason why you should never︆ set up a US LLC with yourself as a member (unless you are a US︇ citizen or resident or unless you opt to have it taxed as a C-corp). Suddenly︈ you can become personally liable for US taxes.

 

[moneyrequired]

google for REAL US forwarding/office address! stop using shittly virtual offices or POB for activities‌ like this!

 

[JohnLocke]

How would that change the tax issue OP‍ describe?

 

[ACSMITH811]

I’m a US resident who lives in NJ. I began doing real estate this year‌ and want to start an LLC in Delaware. I don’t want my home in NJ‍ to be considered my principle place of business because I would then have to pay⁠ corporate taxes in NJ. I’m wholesaling properties virtually in Georgia and Florida. I was thinking⁤ i could use a virtual office in Nevada to be my principle place of business.⁣ is this legal to do?