Have a Finance Question? Ask a Financial Expert Online.
Thank you for your question, and thanks for using JustAnswer.com
A BVI LLC is treated as a foreign corporation for US Tax purposes.
This would not have the same treatment as a domestic LLC.
Simply investing in companies is not considered a business activity, therefore the income from this is "not effectively connected" and therefore any earnings - such as dividends - are subject to 30% withholdings
and capital gains tax?
No, you are subject to 30% tax on all your earnings -this rate is double what your capital gains rate would be if you were a US LLC with US members
If you were a US LLC with US members, there would be capital gains tax and dividend income taxed like we are normally taxed here
But, as a foreign corporation you're taxed 30%
and then, the US owners would be taxed again on any distribution they received from the BVI LLC
the UK members would not have any US tax obligation
Is there anything else that I can assist you with today?
not at this time .. might follow up shortly as i review this with more detial