Hi Ludovic and welcome back!
Please see my comments in line.
1/ single member Delaware LLC - sole US nonresident alien - only foreign income (buying from Asia and selling to Europe - no US presence)
Could you please confirm:
- the LLC would not need to prepare and file tax returns?
In this case - a single member LLC is disregarded entity for income tax purposes - means - ignored - as it doesn't exist - and all business activities and transactions are treated as performed by the member as if there were no LLC.
It is still a separate legal entity - it may own assets, have a bank account - but it is ignored for income tax purposes. Thus - you are correct - the LLC doesn't file US income tax returns.
- the owner would not need to file any personal US income tax report?
In your situation - the owner is a nonresident alien - and because nonresident aliens are taxed only on income from US sources - and because there is NO income from US sources - - you are correct - the owner is not required to file US income tax returns.
- the owner would not pay tax in the US?
That is correct - because none of income is from US sources - none is taxable for nonresident aliens - and no US income tax liability.
- does this income has to be filed in his country of residence (France or UK)?
Generally - yes - however filing requirements are regulated by local laws. Usually - there is a threshold - if the income is above certain level - the income tax return is required.
- would that income be taxed? if yes, according to local laws and rates?
Yes - residents of France and UK are taxed on all worldwide income.
Business income is added to other taxable income and taxed based on total income, filing status, dependents, and other factors specified in the tax return.
For a two members Delaware LLC - both US nonresident aliens - only foreign income (buying from Asia and selling to Europe - no US presence)
Could you please confirm the only difference would be:
- IRS would treat the LLC as a US Partnership?
That is correct - unless you specifically choose the LLC to be treated as a corporation - under default rules - in the US it will be treated as a partnership for federal income tax purposes.
- LLC would need to file IRS form but would not pay any tax? Income would be transfert (prorata of ownership) to owners like for single member LLC?
A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.
A partnership must file an annual information return to report the income, deductions, gains, losses, etc., from its operations, but it does not pay income tax. Instead, it "passes through" any profits or losses to its partners. Each partner includes his or her share of the partnership's income or loss on his or her tax return.
- owners would not pay tax in the US as only foreign income?
Income passed to a partner from the US partnership is TAXABLE for US income tax purposes - regardless if that income from foreign sources. Will or will not partners pay any income taxes determined by filing US income tax returns.