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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29941
Experience:  Taxes, Immigration, Labor Relations
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I am interested in establishing a company (LLC) that will operate

Customer Question

I am interested in establishing a company (LLC) that will operate in United States (corporate side ) and Easter Europe where employees will do the work ( mos likely citizens of East Europian coutries) My question is how to form something like that and tax filing , since i would pay them how to i report that
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
Hi Vlad,appreciate your additional information.Generally nonresident aliens are conducting business activities in the US via the LLC or a corporation registered in the US.A Limited Liability Company (LLC) is a business structure allowed by state statute.Each state has its own business law - and Delaware just one option while that is a very popular option.
Expert:  Lev replied 1 year ago.
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 owner s tax return (disregarded entity).So - if that is a single member LLC - all income and deductions must be reported on your individual tax return.However - the LLC with several members is classified as a partnership.That is an US partnership - and because of that - that is an US taxable entity.The partnership files its own tax return - form 1065 - but do not pay income tax - instead all taxable income is passed to partners.So if that is a single member LLC - all income and deductions will be reported on YOUR individual tax return - schedule C.Regardless operation in foreign countries - you need to verify business and employment laws in each country separately.In general - if the LLC will operate in any country - it will be required to register there and when hires employees - it will be required to pay employment taxes.All expenses will be deductible on your US tax return as long as your LLC will operate according to local laws.Questions?