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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12663
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Which are the filing and tax return obligations for a

Customer Question

Which are the filing and tax return obligations for a Wyoming LLC?
Submitted: 1 year ago.
Category: Tax
Expert:  ABC Accounting Group replied 1 year ago.
  • The State of Wyoming requires you to file an annual report for your LLC - at https://wyobiz.wy.gov/Business/AnnualReport.aspx
  • No corporate or individual income tax to Wyoming - all income flows through to your individual 1040 return.
  • If you have employees, you will need to get an Employer ID Number and fill out a quarterly return with the IRS and with Wyoming at https://doe.state.wy.us/wyereg/ - you can register your business with Wyoming online.
  • Depending on the other states you may do business in, you may need to register with those specific states.
  • If you sell a product or a service, you will need to register with Wyoming, so you can collect sales tax.

Hope this helps. Let me know if you have any questions. Have a great afternoon.

Expert:  ABC Accounting Group replied 1 year ago.

Additionally, here are the list of the federal annual returns, depending on your LLC status:

  1. Form 1040 (Schedule C, E, or F) (appropriate for single member LLCs)
  2. Form 1065 (Partnership) (appropriate for multiple member LLCs)
  3. Form 1120S (S Corporation)
  4. Form 1120 (Corporation)
Expert:  ABC Accounting Group replied 1 year ago.

If you have any questions, let me know. Best Regards.

Customer: replied 1 year ago.
Thank you.
I'll provide more information.I/we are considering to incorporate a Wyoming LLC.
(I/we means myself and my wife.
We are not US citizens and we do not reside in the US.We would not have a permanent organization in the US.
The only thing being that our websites are hosted on servers based in the US, and we buy some services from providers in the US.What would be the obligation to file tax return, or to file any repot, for each of the partners of the LLC?Would these obligations be different if the LLC is owned by only one partner (e.g. myself and not my wife)?Given the above information please confirm that the income flows through to the individual(s) partner(s).In either case, do the partner(s) have obligations of filing tax returns or other reports?
Are these obligations toward the state of Wyoming or to the Federal US Government?What kind of taxes, if any, would we be liable to pay? (the business does not have a stable organization in the US)? Which are the criteria for determining the amount of tax that is to be paid to either the state of Wyoming or the Federal US Government?Thank you so much for your help.
Customer: replied 1 year ago.
We cross posted. So thanks for the additional information you provided. I have also provided you with more context so that you can give a more specific answer. Thanks so much for this.
Customer: replied 1 year ago.
Also, do ask me any information that could help.
Expert:  ABC Accounting Group replied 1 year ago.

From the information above:

You would need to first get an ITIN number. Information on this is via the link:

https://www.irs.gov/individuals/general-itin-information

After you receive an ITIN, you will need to get an Employer ID Number and fill out a quarterly return with the IRS and with Wyoming at https://doe.state.wy.us/wyereg/ - you can register your business with Wyoming online.

It sounds like a partnership - you will be filing a federal form 1065 to the federal gov't.

No partnership return to Wyoming.

At year end, you will file your 1040NR return to the federal gov't - the items on your form 1065 will flow through to your 1040 NR

return.

Expert:  ABC Accounting Group replied 1 year ago.

Some additional information on Wyoming:

http://wyomingcompany.com/new-llc-law/?utm_source=bing&utm_medium=cpc&utm_campaign=**LP%20-%20OG%20-%20KSP%20-%20Wyoming&utm_term=Wyoming%20LLCs&utm_content=Limited%20Liability

If you have any questions, let me know. If no further questions, a positive rating would be very much appreciated. Thank you.

Customer: replied 1 year ago.
Hi,
I appreciate your answer but it's not yet as helpful as I was hoping.
Kindly, could you provide an answer to each one of the questions I'm posing?I also appreciate the links to the online resources but the value you can provide is to organize the information I could find on the internet in ways that are specific to my case thanks to your practical knowledge.
Example I'm asking about two scenarios (one partner vs. two partners).
I trust you can help.
Thanks so much.
Expert:  ABC Accounting Group replied 1 year ago.

Hi. I will defer to another expert.

Customer: replied 1 year ago.
great.
Expert:  Lane replied 1 year ago.

Hi ... I can help here...My name's Lane

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Your question about whether one or two members so changes the scenario is astute.

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With two members, you will be taxed as a partnership. This would require form 1065 AND possibly require the partnership reporting and witholding specific to foreign partners.

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By having only on each member (owner in LLC terminology) the LLC is city sidereal a disregarded entity by IRS, which NORMALLY would require a schedule C along with 1040NR in your situation, but here it sounds as if there is no US source income.

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If you have no US source income and are a disregarded entity you have no reporting requirement.

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If you have no business presence (business assets, a payroll, a branch office, selling agents in the US, you likely have no US source income.

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You should find this chart helpful:

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https://www.irs.gov/individuals/international-taxpayers/nonresident-aliens-source-of-income

Expert:  Lane replied 1 year ago.

As you can see from the chart ... for services provided by individuals AND services as business income ... it is where the service are provided (not from the US here) that determines whether the income is US source income.

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Let me know what questions you have from here.

...

Lane

Expert:  Lane replied 1 year ago.

Sorry ... saw that you asked about Wyoming requirements as well. As I'm guessing that you may already know, you'll have no requirement other than the basic annual report and $50 fee, as Wyoming has no state income tax.

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See this excellent overview by the attorneys at nolo.com

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Annual Report and License Tax

The State of Wyoming requires you to file an annual report for your LLC. You can complete the report online at the Secretary of State website. You can also download a form already containing key information for your LLC from the SOS website. Generally you'll just need to confirm existing information, such as the LLC's name, the name of its registered agent, and the LLC's mailing address and principal office address.

The annual report is due each year by the first day of the anniversary month of your LLC's creation. For example, if your LLC was created on June 15, the annual report is due each year on June 1. In conjunction with the annual report you must pay a license tax. The tax is calculated at a rate of two-tenths of one mill on the dollar based on the value of your LLC's assets located in Wyoming. There is a minimum license tax is $50. For more details on how to compute and pay the tax, go to the SOS website.

State Business Tax

When it comes to income taxes, most LLCs are so-called pass-through tax entities. In other words, the responsibility for paying federal income taxes passes through the LLC itself and falls on the individual LLC members.

...

Wyoming is one of only a very few states that does not have a personal income tax or a corporation income tax. Consequently, for most LLCs, including those that may have elected to be taxed as corporations, no state income taxes are due. Moreover, because Wyoming also doesn't have a personal income tax, LLC members generally will owe no state tax on income they earn from a Wyoming LLC. The only tax for LLCs, mentioned above, is the annual license tax of $50

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Expert:  Lane replied 1 year ago.

That should cover everything ... we can talk more about the possibility of having source income, but from the information you'very provided, you don't have the US presence to have your ncome categorized as US source income.

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This means that if you organize as a single member LLC, your only filing requirement is the Wyoming annual report, and as long as you have no Assets in Wyoming, the annual fee is $50.

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If you file as a multiple member LLC you are taxed as a partnership by default, BUT, here, as well, if it can be shown that there is no ECI or US source income of any kind, there is a filing exemption ... My recommendation, however, would be to organize as a single member, because the obligations if you WERE to be determined to have US source income as a disregarded entity are MUCH less onerous than for a partnership.

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Again, please let me know if you have any questions at all.

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If this has helped and you have no additional questions, I'd appreciate a positive rating (by using the stars on your screen and clicking submit)

...

Lane

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I Have a law degree with concentration in tax, corporate, and estate law... an MBA with specialization in Finance and tax, and have been providing corporate, tax, and business advice, on three continents, since 1986.