Wyoming / New mexico tax filing Q...

[here2learn]

So, just so I get this clear in my mind...

If I open a Wyoming or NM company, via a nominee or agent, and I am NOT a USA resident, NOR do I do business in the USA, then does the company need to file taxes/accounting?

Also, if the service was online and had some USA customers, but the server/website (point of delivery) was non-USA, with no USA presence (no staff, nothing) then would the same rules apply?

 

[uplana]

Very good question, I have never filed anything for my Delaware company in the past and never heard anything from the company that did the formation for me. Either I have been luck for the last 3 years or it's like it is.

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[JamesDonkey]

uplana said:
Very good question, I have never filed anything for my Delaware company in the past and never heard anything from the company that did the formation for me. Either I have been luck for the last 3 years or it's like it is.
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Then why do you say that that's a good question?

 

[uplana]

Because I can't say if this is all going correct and if that are the rules. I explained what was the case for my Delaware company.

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[JamesDonkey]

uplana said:
Because I can't say if this is all going correct and if that are the rules. I explained what was the case for my Delaware company.
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But why does that reason make the question "very good" one?

 

[startfleetio]

You will need to file the Form 5472 no matter what. You can get away without hiring an accountant, but you need to keep adequate records for 1) filling the form 5472 and 2) answering to IRS in case of audits.

You can read more about them in our guide here
https://startfleet.io/guide/us-llc-for-non-residents-guide

 

[JamesDonkey]

here2learn said:
server/website (point of delivery) was non-USA
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How can a server or website be USA or non USA?

 

[Jerry1911]

JamesDonkey said:
How can a server or website be USA or non USA?
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server = the location of the server itself and probably the country/jurisdiction of the provider

website = he is probably referring to the top level domain (.com, .net or ccTLDs like .is, .ch, .li, .ru)

 

[JamesDonkey]

Jerry1911 said:
server = the location of the server itself and probably the country/jurisdiction of the provider

website = he is probably referring to the top level domain (.com, .net or ccTLDs like .is, .ch, .li, .ru)
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Who says that such information relevant at all?

 

[JohnLocke]

Jerry1911 said:
server = the location of the server itself and probably the country/jurisdiction of the provider
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actually for many years ago Curacao had a applicable law for online Casinos and companies that wanted to be exempted from taxes to have a server or just a empty "box" in a specific hosting facility in order to be compliant with the local tax laws.

So a server location can in rare cases determine a tax fate.

I'm not sure this example is working any longer there, but it was how it worked about 15 years ago.

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[Forx39]

startfleetio said:
You will need to file the Form 5472 no matter what. You can get away without hiring an accountant, but you need to keep adequate records for 1) filling the form 5472 and 2) answering to IRS in case of audits.

You can read more about them in our guide here
https://startfleet.io/guide/us-llc-for-non-residents-guide
Click to expand...

What about form 1120 or 1040-NR ?

 

[startfleetio]

Forx39 said:
What about form 1120 or 1040-NR ?
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You do not need to file these forms if you do not trigger federal tax obligations. 1120 is not for LLCs anyway.

 

[marioIT]

startfleetio said:
You do not need to file these forms if you do not trigger federal tax obligations. 1120 is not for LLCs anyway.
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this is the face of my CPA after reading your post: 😱
do you seriously offer incorporation and LLC services to foreigners and don't know these basic things?
I hope it was a typo.

 

[Forx39]

marioIT said:
this is the face of my CPA after reading your post: 😱
do you seriously offer incorporation and LLC services to foreigners and don't know these basic things?
I hope it was a typo.
Click to expand...

I am more confused now. So, what kind of forms must be file?

 

[startfleetio]

marioIT said:
this is the face of my CPA after reading your post: 😱
do you seriously offer incorporation and LLC services to foreigners and don't know these basic things?
I hope it was a typo.
Click to expand...

I apologize, I jumped to a conclusion too quickly, assuming that you are not triggering federal taxation. But LLCs only file 1120 if they elect to be taxed as C-Corp via Form 8832.

If the foreign-owned single-member LLC is deemed to engage in US Trade or Business and has Effectively Connected Income, 1040NR needs to be filed. If it is a multi-member LLC, the LLC and foreign non-resident alien members will have to file Form 1065, K1,K2,K3 schedule for each member, and Form 8804 and 8805 (if ETBUS and has ECI)

Please read these
https://startfleet.io/guide/us-llc-for-non-residents-guide
https://startfleet.io/guide/annual-compliance-requirements-for-a-us-llc-owned-by-non-residents
Talk to us on our website about your specifics

Last edited: Jun 17, 2022

 

[startfleetio]

Just for the record. Foreign-owned SMLLCs who are not ETBUS and have ECI will have to file Form 5472 and Pro Forma 1120. Sorry if I confuse anyone.

 

[Forx39]

startfleetio said:
Just for the record. Foreign-owned SMLLCs who are not ETBUS and have ECI will have to file Form 5472 and Pro Forma 1120. Sorry if I confuse anyone.
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How do I lose the status of not ETBUS? Just pay one bill in US is enough to become ETBUS? For instance if I pay my registered agent yearly?

 

[startfleetio]

Forx39 said:
How do I lose the status of not ETBUS? Just pay one bill in US is enough to become ETBUS? For instance if I pay my registered agent yearly?
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No you won't trigger ETBUS by paying your reg agent

 

[Forx39]

startfleetio said:
No you won't trigger ETBUS by paying your reg agent
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Payment is not a problem, never, correct or there are exceptions? ETBUS ONLY depends on receiving money from US entities, is it right ?

Last edited: Jun 18, 2022

 

[startfleetio]

Forx39 said:
Payment is not a problem, never, correct or there are exceptions? ETBUS ONLY depends on receiving money from US entities, is it right ?
Click to expand...

No it doesn't work that way, read our article US LLC for Non-US Residents (Foreigners) 2022 Guide