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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29558
Experience:  Taxes, Immigration, Labor Relations
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I have recently opened a Wyoming LLC (only one owner non-resident

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I have recently opened a Wyoming LLC (only one owner non-resident of the US). I know that I am not obliged to request for EIN (one owner, no employees and I am not selling products in the US).

However I have a problem in opening the account in US for my business and I am wondering whether it would be a good idea to apply for the EIN.

What consequences will arise for me if I had EIN? Any IRS reporting?

Lev :

Hi and welcome to Just Answer!
You are correct - banks would not open the account for you personally or for the LLC without having a tax ID.
The fact of having the tax ID would not trigger any additional tax liability of any additional filing requirements.

Lev :

A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state may use different regulations. Most states also permit “single-member” LLCs, those having only one owner.
Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return (a “disregarded entity”). Specifically, a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and affirmatively elects to be treated as a corporation. And an LLC with only one member is treated as an entity disregarded as separate from its owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes), unless it files Form 8832 and affirmatively elects to be treated as a corporation.
As a nonresident alien - you are taxed only on income from US sources.
If you start the LLC - the situation will not be different because a single member LLC is disregarded entity - means - it is ignored for income tax purposes - and all income and expenses are reported on owner's individual tax return as if there were not the LLC.
If you are a nonresident alien - you are taxed ONLY on income from US sources. Thus - if you do not have any income from US sources - there is no tax liability - and you are not required to file US federal tax return. Your tax liability in your home country or your country of residence - is a separate issue - and is based on local laws.
There are some complex rules to determine the source of income. You may take a look - page 12 of IRS publication 519 - http://www.irs.gov/pub/irs-pdf/p519.pdf - Table 2-1. Summary of Source Rules for Income of Nonresident Aliens.

Lev :

A single member LLC is disregarded entity - 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.
So - in this case to determine if such income is taxable or not in the US - we need to start with who is the member and what type of income has been received.
As in your situation - the member would be a nonresident alien - and income is from sources outside the US - such income is not taxable in the US.

Customer:

So I should apply for the EIN and I do not have to submit any other forms to the IRS on annual basis?

Lev :

As long as your LLC will not have any income from US sources - that is correct - no need fro any tax filing.

Lev :

Filing requirements for income tax purposes are based on income - as long as there is NO income from US sources - nothing need to be filed with the IRS. You still need to maintain your Wyoming LLC current with Wyoming state authorities.

Lev and other Tax Specialists are ready to help you