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Thomas McJD
Thomas McJD, Attorney
Category: Business Law
Satisfied Customers: 6516
Experience:  Experienced in Corps, LLCs, Partnership, etc.
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As Im self employee, get 1099 from company. So if I open a

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As I'm self employee, get 1099 from company. So if I open a company such as LLC, will help to reduce the taxes, right?

Hi, I will be happy to assist you, and it is my goal to make you a very satisfied customer! This may take a few minutes, so thanks for your patience.

Yes, it can if the operating agreement is structured correctly (and you would need to see a local tax attorney for assistance in that regard) and if you can justify paying yourself less than what your business makes. In other words, and in regard to the latter requirement, you would need to be able to prove (if the IRS questions it) that paying yourself $50,000 per year (as an example) is reasonable compensation for the services rendered and that the remaining $70,000 of profit (as an example) is pure business profit and may pass through to you as an owner, not as an employee.

Then you only have to pay self-employment taxes on the $50,000 and not the whole $120,000.

Thomas McJD and 3 other Business Law Specialists are ready to help you
Customer: replied 3 years ago.
As I'm not US citizen, can I still open LLC company in US?
Do you live here in the US and stay here permanently (i.e. are you a resident alien)?
Customer: replied 3 years ago.
Yes, I have drive license.

Then you shouldn't have any issues. The LLC is not what really matters -- it's that your LLC must be taxed as an S-corp. An s-corp cannot have a non-resident alien member.

Here is some more information on your initial questions re the tax savings for an LLC taxed as an S-corp:

http://www.ftwlaw.com/page.php?page=articles&articles=175

Thomas McJD and 3 other Business Law Specialists are ready to help you
Customer: replied 3 years ago.
You don't have to be American citizen to open LLC right?
No, you do not have to be an American citizen. But to have it taxed as an s-corp, you have to be a permanent resident.
Customer: replied 3 years ago.
How do they need to show if I'm a permanent or not?
I don't know that you do. You just make the appropriate election on IRS form 2553.
Customer: replied 3 years ago.
Sorry, I don't understand. I just need to show driver license, right?