Have a Tax Question? Ask a Tax Expert
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,
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.
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?
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:
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.
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?
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
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,