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Discussion Forum Index --> Tax Questions --> Foreign LLC Partner
Shep143 (talk|edits) said:
| 10 November 2006
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| I was speaking to a possible new client today. They have a two partner LLC where one partber is a foreign resident who visits the US several times a year. The other partner is a US resident. Can anyone give me some imput on what his tax situation is? Any information would be appreciated. Thanks.
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Foxttron (talk|edits) said:
| 10 November 2006
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| The LLC should be run as a regular partnership (if no "check the box") but you have QUATERLY 8804 and 8805 requirements. Read the instructions. It can be a lot of work for the accountant.
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Sandysea (talk|edits) said:
| 10 November 2006
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| Is the Foreign resident a US resident as well for tax requirements? Is the foreign person engaged in a trade or business in the US? There are several reporting requirements depending on the type of investement the foreign partner holds in the US LLC.
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IntlTax (talk|edits) said:
| 10 November 2006
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| Other than the forms Fox mentions above, you may need to complete Forms 8813, W-8BEN, and 1042-S. The foreign resident will need to obtain an ITIN and file Form 1040NR. It may (or may not) be easier if the arrangement were set up as a foreign entity.
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Shep143 (talk|edits) said:
| 10 November 2006
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| Thanks, Yes the foreign person is engaged in business in the US. I looked up the forms Foxttron mentioned on the irs web site. It will take more time for me to sort out how to fill them out. I don't know the answer to the question if he is a foreign resident for US tax requirements. I will have to ask more questions of the client. It also appears that he needs a tax identification number as well. Again, thanks for your input.
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