How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask rakhi.v Your Own Question
rakhi.v, Tax Attorney
Category: Tax
Satisfied Customers: 4543
Experience:  Have graduated in Law with specialization & emphasis in Financial Laws and has working experience of over a decade.
Type Your Tax Question Here...
rakhi.v is online now
A new question is answered every 9 seconds

I have a BVI company that is the single member of a US LLC.

Customer Question

I have a BVI company that is the single member of a US LLC. My LLC receives interest income and dividend income from investments we make in the US. I read about a 30% withholding requirement. When do we have to do it? Also, does the BVI company need to file a US tax return?
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: Just that.
Submitted: 9 months ago.
Category: Tax
Expert:  rakhi.v replied 9 months ago.

Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

YES-- BVI will be subjected to US taxation and will have to file returns, the primary reason being that it has its income from the LLC which has in turn income from the US sources. If you own a BVI company and live in the US (assumably as a Citizen or Perm. Resident, with US Sourced income from your BVI Company. You may be subject to taxes in the US, as the US Taxes on Worldwide income, irrespective of the destination of the company.

So far as withholding is concerned, it will be done at any time when a payment / distribution of the income is being made to the BVI entity.

I am sure this would help.

You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.

Warm Regards,