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.

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This is the probably the answer to your question.

 

[dvm]

Sols said:
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.
Click to expand...

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]

dvm said:
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)?
Click to expand...

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]

banafinfodafuggiano said:
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?
Click to expand...

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.