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TexLaw, Attorney
Category: Business Law
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Experience:  Internationational Commercial Attorney
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If I am a foreigner and set up a business in the US, through

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If I am a foreigner and set up a business in the US, through what mechanisms can the business make payments to me? ie:
- can the business pay a foreigner in another country (who is the owner) a salary?
- can profits be sent out of the US?

Thanks very much
Hi,

My name is XXXXX XXXXX I will be assisting you with your legal question.

Yes, you can pay yourself. There is an automatic 30% withholding tax on any payment going to you, either as a dividend or as an employee. Remember you cannot do any actual work inside the US unless you have a US Business Visa.

Please let me know if you have any further questions. Please also kindly consider rating my answer positively so that I am credited by the website for my work on your question. Rating positively does not cause an additional charge and does not prevent us from further discussing your questions.

Kind regards,
Zachary
Customer: replied 3 years ago.

Thanks Zachary.


 


Just to clarify:


- if you are living outside the US and pay yourself either a dividend or as an employee, there is an automatic 30% withholding tax?


- if you are living outside the US, the US business can pay you for work conducted from outside the US (e.g. remotely) without having a US business visa?


 


 

In regard to 1, yes. Income to non-resident aliens from a US based business is taxed with a 30% withholding tax.

In regard to 2, yes. Only non-resident aliens performing work while physically in the US need a US work visa. If the work can be done remotely, there is no need for a visa.
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