Have a Tax Question? Ask a Tax Expert
If you are not a resident, a US citizen, have a US location or have income derived from operations in the US you will not have to report any income
I can give you the IRS tax law citations (title 26 of the US code) regarding the entities that DO have to report, but there are no rules that say who DOES NOT, of course.
But again, US citizens have to pay income on tax or at least report and potentially get a credit for taxes paid to other taxing authorities o ALL worldwide income .... residents who have a presence her have to as well ... and even NON-resident aliens have to if it income is US source income Either effectively connected or earned from have a location and working in the US ... but it sounds as if you do not meet any of these tests
But to open a US LLC that doesn't have any US operations, US income, or even costs (other than the yearly cost of having an LLC which is about $200 or so), but does have a bank account which receives money from foreign operations simply because it is easier to operate a paypal account with a US bank... is that legally ok?
From IRS: A nonresident alien individual engaged or considered to be engaged in a trade or business in the United States during the year DOES have to report, but this is the closest definition to you that exists, given your provided information .... See this: http://www.irs.gov/Individuals/International-Taxpayers/Taxation-of-Nonresident-Aliens
Yes, if the bank will open it for you (I'm assuming that your are creating the LLC so that you can have a tax ID for the bank account) ... WHat things will turn on (in terms of paying taxes) is whether IRS says having a US LLC is operating a business withing the US .. the bank probably WILL have to wothhold taxes on an interest paid to the account
Do you mean withholding on the interests generated on whatever balance I have on my account, but not witholdings the actual capital, right? That seems fair. Money will be flowing in, and out. But all money received would be from the company's own paypal account.
That's the last follow up. Excellent service
That's right, just any interest paid on the balance, not the balance itself