Individual Foreign Person with US LLC Business?
If you are a foreign person (i.e Non US Citizen, nonresident outside of the USA and own a US LLC business as 100% owner or partner or LLC member in any capacity you would need an ITIN to file your USA tax return, claim tax treaty benefits, to complete Form W8BEN, to open an individual US Bank account.
Are S-Corporations and C- Corporations Taxed in the Same Way?
The answer is “NO”
The distinction between a C and an S-corporation is purely with regard to the way they are taxed.
Even though any type of corporation is first formed under the laws of a particular state, the profits of the corporations are taxed in a different way under federal tax law purposes.
C- Corps – are normally considered as “regular” corporations that are subject to the corporate income tax.
S- Corps – are “Small corporations” that have filed special elections with the IRS. These S Corporations are not subject to corporate income tax. Instead, they are treated similarly(but not identical to partnerships for tax purposes; The income “passes” to the owners. Thus, they are often called Pass-through entities. When the income is passed to individual owners the 1040NR US tax return needs to be filed with a valid ITIN
Sole Proprietors are similar in that the profit is taxed at the individual level, but they are called “disregarded entities” instead of “passthrough entities”.
For the difference between an SSN and ITIN refer to this blog.
For more information on how to complete an ITIN application.
Our team specializes in international expatriate U.S. personal tax return services. If you need assistance with ITIN Renewal/US 1040 filing for refund claim/FATCA Compliance work/FBAR FINCEN114 Filing, ITIN/ Form W7 Application/E.I.N./Form W8BENE or Certified Acceptance Agents [C.A.A.] services/1040NR U.S. tax filing for refund claim of excess 1042S / 8288A/ 8805/ W2/ 1099. We are happy to assist our clients in a timely, efficient, and cost-effective way
