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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 114797
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I am a non resident alien and want to form an LLC in New Jersey

Customer Question

I am a non resident alien and want to form an LLC in New Jersey or Delaware. Income comes from business done outside the US(usually dividends from foreign investments) and from non US citizens. Is there any taxes at the State level? And Federal Taxes? Any other taxes?
Thank you,
Guillermo Wright
Submitted: 7 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 7 years ago.
Since you are an LLC, this is a flow through entity and this means you would have to declare all profits and losses on your personal income taxes, which if you are a non-resident alien you must file. Same on your state income taxes. As far as other taxes, if you are in retail (which you are not) you would pay sales taxes. Delaware and NJ allow non-resident aliens to form LLC's as single members, so you can do this.

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Customer: replied 7 years ago.
Since business is not done in the US, income or dividends come from outside the US so there is no income from US sources, I understood there is no taxes when business is not done in the US.
Expert:  Law Educator, Esq. replied 7 years ago.
You still have to file your own personal income taxes and the assets/losses get reported on your US tax returns which must be filed if you are making any income in the US. However, income made in other countries, as you have stated, are exempt for non-resident aliens. Thus if the income is from non-US sources and is classified as exempt, you would still file the LLC tax returns, get a K-2 form for your income taxes and it would be exempt as income made in foreign countries.
Customer: replied 7 years ago.
Just a final question. Since it will be an LLC, I will be required to file an income tax return and not the Company. I understand that in Delaware I don't have to disclose the beneficial owner and from what I read, I do not have to maintain Annual accounts, file tax returns or need an audit at the Company level. Is this the same in New Jersey?
Expert:  Law Educator, Esq. replied 7 years ago.
You file both. The LLC files an income tax return, but does not pay taxes, it issues K-1 forms to the members and the members claim the money from the K-1 form on their personal taxes, just as they would file a 1099. You have to maintain corporate records, books, cannot comingle funds with your own, must keep records. It is the same in DE and NJ.
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Customer: replied 7 years ago.
Thank you.
Expert:  Law Educator, Esq. replied 7 years ago.
You are welcome. Thank you.