Wyoming LLC

[LoveMyLife]

Where will be your⁠ customers? Where will be your suppliers?

 

[Cazorla]

Customers will be in US but thats where people are making mistakes, its important from‌ where are services performed. Almost every CPA told me that.

 

[LoveMyLife]

It can be real mistake. Many CPAs just believe that just having customers in USA⁠ is not making profit taxable in the USA. Problem is, that law sets rules:
If you are doing activity perpetualy, and if the most of your customers are in USA,⁤ company will be taxed in USA. So it is not about only having customers in⁣ the USA. If the most of customers are in the USA and you are doing⁢ activity for US customers periodicaly, not occasionaly only, company is considered to be a USA︀ tax resident.

 

[Cazorla]

Alright, but looks to me that you are︀ speaking now about being engaged in US trade or business. But for withholding taxes, a︁ US tax resident is not require to withhold taxes when making payments to non resident︂ aliens (to person who is owner of Serbian company). So if we follow that, even︃ if my LLC will pay some taxes in US, there shouldn't be withhold taxes because︄ LLC is paying to a non resident alien.

 

[LoveMyLife]

US tax resident IS REQUIRED to withhold taxes when⁢ making payments to non resident.. This is how withholding tax works. Withholding of tax is︀ not done in case if person who will receive a payment is resident in a︁ country which has a DTT with USA. In that case, withholdin tax is applied on︂ DTT rate or not applied if DTT says so.