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Thanks for the prompt response. I am afraid I don't have my answer. I know the two individuals in my example will have to pay US taxes, the question is what Form will they have to file if this is the only income they have? It could be 1065 or 1040 if SMLLC. But if SMLLC would that afford the same asset protection as a MMLLC? I am sorry if I was not clear in my question.
Hello apple,
Your question has been transferred to the tax forum to be addressed.
In both cases described, you will file only Form 1040NR. Single member LLC's do not file Form 1065.
A single member LLC offers the same layer of legal protection as a multi member LLC. The only difference is in the tax forms they file.
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Thank you apple.
Hello again apple,
Yes, you are exactly correct on both points. The Form 1040NR will be the master form that is filed in either case.
Rental income and expenses are reported on Schedule E and consutling income is reported on Schedule C. The income from both of those schedules then transfers over to the Form 1040NR.
Thank you apple
Accountant
25+ years tax consulting. Specializing in returns for US citizens living abroad
Thank you apple and let me know if you have more questions.
Merlo,
Sorry to bother you again but in a community property State like Texas an LLC set up under husband and wife as equal partners considered single member or multi member requiring a 1065. Thanks.
If the husband and wife are the only two members, it is still treated as a single member LLC, regardless of whether or not it is organized in a community property state. Any other members other than husband and wife would be considered a partnership.
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