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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 1053
Experience:  Tax Preparer for 16 years; 25+ years experience as a real estate/corporate paralegal.
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We are a LLC company (sole shareholder, a Singaporean, does

Customer Question

We are a LLC company (sole shareholder, a Singaporean, does not live in USA) established in Delaware since April 2013.
As informed by your colleague that the sole shareholder of LLC only file personal income tax, no need to file company income tax.
1. What is the due date of filing personal income tax? what is the tax percentage (a link is also fine).
2. As I read, there is only one filing obligation (sole shareholder's personal income tax) in Delaware annually, am I correct?
3. I receive a reminder from our registered agent that we have a quarterly update filing if anything change in the organization. How to file it? Do you have a form or a link?

Kind regards, Victoria
3.
Submitted: 10 months ago.
Category: Tax
Expert:  Barbara replied 10 months ago.

Good morning, Victoria.

 

Welcome. My name is XXXXX XXXXX it will be my pleasure to assist you with your tax question today.

 

The US does not tax income of foreign persons who are not US persons for tax purposes, unless the income is "effectively connected" to the US activities or earned in the US. However, you will still pay taxes in your own country. The LLC is a disregarded entity for tax purposes, so all of the income is yours, not the LLC's. You would be subject to Singapore's tax laws, and will have to pay taxes on the money accordingly.

 

You file an Annual report with the Delaware Division of Corporations, and can make any changes at that time. The link to the Delaware Division of Corporations website can be found at the following: http://corp.delaware.gov/

 

Please let me know if you require further information or clarification.

 

Thank you and best regards,

Barb

Expert:  Barbara replied 10 months ago.

Hi, Victoria.

 

I see that you are now offline. Please let me know if I can assist you further, and I will be happy to do so. If not, please take a moment to rate my answer to you since that is an important part of being an expert on JustAnswer, and I strive for excellence.

 

Thank you and best regards,

Barb

Customer: replied 10 months ago.

Hi Barbara,


 


Thanks for your reply. I still have questions:


 


1. In fact, we run the kickstarter in USA for a Hong Kong based company and we charge them a certain percentage as a marketing/shipping handling service. Is this income counted as effectively conntect to US activities?

Expert:  Barbara replied 10 months ago.

Hi, Victoria.

 

Thanks for your follow-up question.

 

Any income generated in the US is considered to be effectively connected to the US.

 

In that instance, you would be required to file Form 1040NR for federal tax purposes as well was a Delaware Non-Resident tax return. The links are as follows:

 

http://www.irs.gov/pub/irs-pdf/f1040nr.pdf

 

http://www.irs.gov/pub/irs-pdf/i1040nr.pdf

 

http://revenue.delaware.gov/services/current_pit/TY12_booklet_nr.pdf

 

While I realize these references are for 2012 (the 2013 versions are not available as of yet), I wanted you to be able to review what is involved.

 

Thank you and best regards,

Barb

Customer: replied 10 months ago.

Hi Barbara,


 


Thank you!


 


How about our Hong Kong based client? Because I pay back the money to them after deducting my commission. Am I liable for their income tax (if any) in USA? Do they also need to file tax return in USA since the income is also generated in USA via website even though 1/4 of the buyers are outside of USA.


 


If I am liable for their income tax in USA, what should I do with it?


 


 

Expert:  Barbara replied 10 months ago.

Hi, Victoria.

 

You would not be responsible for paying taxes for another entity that is a customer of yours. They will have to make their own determination if they are required to report income/pay US taxes. You are responsible for the income generated by your LLC and any taxes that may be associated with that income

 

Thank you and best regards,

Barb

Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 1053
Experience: Tax Preparer for 16 years; 25+ years experience as a real estate/corporate paralegal.
Barbara and 3 other Tax Specialists are ready to help you
Expert:  Barbara replied 10 months ago.

Hello again, Victoria.

 

Just a short note to thank you for the "excellent" rating of my answer. It is most appreciated.

 

If you have any questions in the future, please feel free to put "for bkb1956 or Barb" in the subject line, and I will be happy to assist you.

 

Thanks again and best regards,

Barb

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