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]

No

 

[MarkusCostigan]

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]

Yes, e.g. some US agent who is working exclusively for you guarantees you‌ to become ETBUS and being taxed.
This is of no importance.

 

[sinos]

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