Slovakia tax resident

[sknomad]

Dave88 said:
Thank you very much for the very comprehensive answer. My supplier probably told me the wrong things and he probably isn't aware of it either but he is trusting his consultant.
I just don't understand what you mean by "LLC does not pay dividends". Do you mean there are no US taxes attributable to the LLC for the dividends? Thanks again
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US LLC pays dividends just in case if it is taxed as a Corporation. It LLC is just in a default tax regime, it is a tax transparent entity. So all profits pass through LLC to the members. Passed through profit is not a dividend by the law.

 

[Dave88]

JustAnotherNomad said:
A transparent (single-member) US LLC cannot pay dividends. It is a disregarded entity. For tax purposes, the company does not even exits. All income is automatically the income of the owner, as if the owner had earned the money under his own name. Only corporations can distribute dividends (after paying corporate income tax).
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I knew you can choose https://www.irs.gov/businesses/smal...yed/single-member-limited-liability-companies

 

[JustAnotherNomad]

Yes, you can choose, but all tax will still be paid in Slovakia. You can't choose not to pay tax or to pay tax in the US if nothing is happening in the US.

 

[daniels27]

Dave88 said:
I knew you can choose https://www.irs.gov/businesses/smal...yed/single-member-limited-liability-companies
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You can chose in the US. But it won't change much as there is a tax treaty which specifially says that the company managed in Slovakia can only be taxed in Slovakia. If you pay taxes in the US, Slovakia has the right to still tax you. And you probably won't get it back in the US or only after long discussions as you deliverately paid taxes that you should have kown they were not due.