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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2859
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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I have Tax questions and Mexico Texas LLC company -I'm

Customer Question

Hi , I have Tax questions for USA and Mexico for a Texas LLC company -I'm Sole Proprietorship in a Texas LLC created on February 2015 -I'm a Mexico citizen living in Chihuahua, México, -I'm working making Structural Steel Detailer for US clients and all
the work is performed in Chihuahua,Mexico. -I'm register in SAT Mexico as "Servicios Profecionales(Honorarios)" -No employees in USA, all work is performed by "outsourcing" in Mexico and paid in cash directly, outsource individuals must send me an invoice(Comprobante
Fiscal Digital, factura electronica) before I can paid him. (I'm placing these invoices in Quickbooks as "Vendors" , don't know if is OK , please advise if is acceptable.) -Only a Business Checking account and one Business market rate savings in Wells Fargo
were created and all checks from US clients are deposited here at business checking account and a percent of these check transfer to saving accounts.. -My End Tax Year is December 31 each year -My only expenses in USA for Texas LLC company is a PO BOX in Texas
and some computer Stuff and some dinner in the USA. My questions are: 1.-What will happen after December 31 to the money that I have on a)Business Checking account b)Business market rate saving account 2.-What I need to make per my company LLC and as individual
on: a) IRS here in USA b) SAT in Mexico Thanks
Submitted: 12 months ago.
Category: Tax
Expert:  socrateaser replied 12 months ago.

Hello...you asked:

1.-What will happen after December 31 to the money that I have on a) Business Checking account

A: Unless the account earns interest, nothing will happen to the money in the checking account, because the bank has no obligation to report the balance or transactions to the IRS -- unless it suspects something illegal such as money laundering or terrorist activity.

b) Business market rate saving account

A: Again, nothing will happen, but you will have a tax liability on the interest earned as a nonresident alien. Unless you file a non resident tax return and pay the tax, the IRS could eventually levy the account for the unpaid tax.

2.-What I need to make per my company LLC and as individual on: a) IRS here in USA b) SAT in Mexico

A: I don't understand this question. Can you please rephrase? Thanks.

Customer: replied 12 months ago.
Hi Socraeaser,One question, do you know the rules for SAT(Secretaria de Administracion Tributaria) in Mexico?Thanks
Expert:  socrateaser replied 12 months ago.

No, I don't, sorry. If that's a requirement for your answer, then let me know and I'll reopen the question for others to assist.

Customer: replied 12 months ago.
this is a requirement.Thanks
Expert:  socrateaser replied 12 months ago.

okay, thanks.

Expert:  Barbara replied 12 months ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

As to the U.S.,

Non-residents are generally taxed in the U.S. on income from U.S. sources. An LLC is a disregarded entity for tax purposes. Since you are a single member (sole proprietorship), you will report your income and expenses on Schedule C from Form 1040 and use the information to file Form 1040NR.

https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

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

http://www.gtn.com/US_Taxation_of_Foreign_Nationals.pdf

As to Mexico,

Mexican residents are taxed on their worldwide income. Personal income tax rates are progressive up to 35%.

http://www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-mexicoguide-2014.pdf

Because there is a Tax Treaty in place between the U.S. and Mexico, you will be able to obtain relief from double taxation. In other words, you will receive credit on your Mexican tax return for taxes paid to the U.S.

The classification for the individuals who perform work for you in Mexico are independent contractors. You are correct to require invoices from these individuals as documentation.

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

Thank you and best regards,

Barb

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