Nonresident Alien and Single Member LLC

If you are a nonresident alien and own a Single-Member LLC (a type of business registered with a state and the IRS), the IRS generally treats it as a disregarded entity for tax purposes. This means that the LLC’s income and expenses are reported directly on your personal tax return. However, you can choose a different tax classification if you wish.

Keep in mind that as a nonresident alien, you cannot choose the S-Corp option using Form 2553, but you can choose to be taxed as a C-Corp by filing Form 8832.

Nonresident Alien Tax Return

As a result as a nonresident alien individual, the business activities and/or rental activities are reported on your US Income Tax via Form 1040NR or a U.S. Nonresident Alien Income Tax Return.

If the LLC only has personal use property listed and does not generate revenue a tax return or form 1040NR is nor required - read more here under Who must file a 1040NR. However, you might be required to file Form 5472 with a pro-forma Form 1120 to indicate the ownership participation.

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Multiple Partners: If you own a US based LLC or Limited Liability Company with one or more partners, the default tax treatment or classification is partnership. This classification is registered with the IRS and a partnership according to the IRS s treated as an entity separate from its partners, but it is a pass-through entity and it generally does not pay tax at the partnership level but at the personal income tax level. Generally, a multiple partner LLC files Form 1065 - US Return of Partnership Income - to report the income and expenses of the partnership. The partnership share income and expenses are reported on on your Form 1040NR via Schedule K-1 1065.

Tax Treaties

Your country or residency might have a tax treaty with the U.S as the United States has about 65 tax treaties with other countries including for Personalized Services performed in the United States. Here is the US-Canada income tax convention and the Tax Convention with the Republic of India.

A tax treaty between countries might allow residents of the treaty country to be taxed at reduced rates on specified items of sourced income in the United States, or be exempt from US taxation on other categories of income.

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