US LLC Recurring monthly subscriptions from US costumers

[MarkusCostigan]

Hello guys, are monthly recurring subscriptions from US customers (SaaS) considered US Source income and therefore should they be taxed in the US?

From IRS:
"you are engaged in “considerable, continuous, and regular” business in the US"

Obviously no US employees, non-resident LLC, no other ties to US.

Thanks.

Last edited: Jul 8, 2024

 

[aniglo22]

MarkusCostigan said:
Hello guys, are monthly recurring subscriptions from US customers (SaaS) considered US Source income and therefore should they be taxed in the US?

From IRS:
"you are engaged in “considerable, continuous, and regular” business in the US"

Obviously no US employees, non-resident LLC, no other ties to US.

Thanks.
Click to expand...

No

 

[MarkusCostigan]

aniglo22 said:
No
Click to expand...

Is there any circumstance that would increase your chances of being taxed? For example percentage of US customers, total turnover (I think 5k months are different in the eyes of the IRS than 5M per month)

 

[Forester]

MarkusCostigan said:
Is there any circumstance that would increase your chances of being taxed?
Click to expand...

Yes, e.g. some US agent who is working exclusively for you guarantees you to become ETBUS and being taxed.

MarkusCostigan said:
For example percentage of US customers, total turnover (I think 5k months are different in the eyes of the IRS than 5M per month)
Click to expand...

This is of no importance.

Toggle signature
--------------------------------------------------------------------------------------------------------------------------------------

I am just a simple countryman. Anything I say is only a personal opinion, not a certified advice 🙂

If you think it makes sense, you can like it; if opposite, please, tell me, why I am wrong...

 

[sinos]

or maybe if you have a physical business address for your LLC apart from the registered agent address.