For non-residents in the US who have a NM LLC, I know it’s a pass-through entity which means my profits, losses and expenses simply flow through to me as an individual. Do you know what tax form obligations I have yearly?… if any at all?
Generally speaking, a nonresident alien engaged in a trade or business in the United States would need to file a Form 1040NR (U.S. Nonresident Alien Income Tax Return). Before they could do that, they’d need either a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). They’d actually need a SSN/ITIN before they can obtain an EIN for their company, as the IRS requires it for the designated Responsible Party. They could obtain an ITIN by filing Form W-7 with the IRS.
On the state level (assuming New Mexico), if the pass-through entity is a:
- Single Member LLC taxed as disregarded entity, no state filing would be required; or
- Multi-member LLC taxed as a partnership, the taxpayer would need to file a Form PTE (New Mexico Information Return for Pass-Through Entities).
We assume the LLC won’t (1) elect to be taxed as an S-Corp since S Corporations can’t have foreign owners, and (2) be taxed as a C-Corp because the question above acknowledged pass-through taxation.
If you wanted to consider C-Corp tax status, then the analysis would be different. Specifically, the LLC itself (not you as the nonresident alien) would file its own corporate tax return at the federal and state level. If this was what you were considering, then we would also advise to file in a state that has no corporate income tax, such as Delaware or Wyoming, versus New Mexico.
We encourage you to consult with a CPA who can advise you on such matters. For more information about Anonymous LLC’s, pricing and/or to order, you can use the following link:
Or please feel free to contact us with more questions.
Please read our other knowledge base article on this topic entitled, Do I Have to Pay Taxes in the US if I’m not a US Citizen or Resident?