Am I a US tax resident?

[migueljuan]

I have European nationality, live in Europe and want to open a disregarded entity LLC as a non-resident. I will have only European customers, so as far as I can see I would not be taxed by the IRS. However, the folks at CircleClub have told me that since I have a social security number (I went to university in the US), that the IRS would automatically treat me as a resident and tax me on my income from the LLC.

It doesn't make sense to me that even though I don't live in the US nor have a green card, that simply because I was assigned a SSN 20 years ago that I would be seen as a tax resident.

Does anyone know if this is true? I can't find any information anywhere that confirms this. Thanks!

 

[Martin Everson]

In US most peoples TIN is their SSN it seems so having an⁠ effective TIN for US could be root of issue. Speak to a US tax advisor⁤ or maybe someone knows more. I don't claim to know much about the US other⁣ than to avoid it....lol.

https://www.irs.gov/taxtopics/tc857

 

[Xshore]

Having a SSN doesn't make you tax resident..

 

[daniels27]

As a non resident alient, you are only subject to US taxes once you pass‌ the substantial presence test:
https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test
When fillint out tax forms, you should use the W-8‍ BEN forms and not use any W-9 form:
https://www.irs.gov/individuals/int...pes-of-interest-income-for-nonresident-aliens

 

[migueljuan]

Actually I think I need to re-phrase my question. The question here is NOT am‌ I a tax resident, because its clear that I am not. However, according to CircleClub,‍ a foreign-owned LLC is no longer considered "foreign-owned" when a SSN was used to obtain⁠ the EIN. This changes how it is taxed. Again, I can't find any information online⁤ about this. Has anyone heard this before?

 

[daniels27]

Please in particular⁣ pay attention to Form 5472 (which is only mandatory for foreign-owned LLCs). I highly expect⁢ you to get a $25,000 fine if you do not file it.

This is also︀ where you can read the IRS definition of "foreign owned":
https://www.irs.gov/instructions/i5472

In short, you will need to file the︊ form or face the fine.

And just for the record, foreign-owned and tax residency are︋ two separate things. But as mentioned above, you are not liable to any taxation of︌ your LLC. Having a SSN does not change that.