US business bank account

[dvm]

The question of federal tax on the individual/corporation depends entirely whether you are "engaged in a trade or business in the United States". It's one thing the CFAs get wrong so often when advising non-resident aliens.

If a 1-member US LLC belonging completely to a non-resident/non-citizen hires a US person (from the IRS standpoint) to be the managing manager for the sole purpose of opening an account for the company in a US bank, and that person does not get any salary from the LLC, does this make the company ETBUS?

 

[KraftyAndy]

If a 1-member US LLC belonging completely to a non-resident/non-citizen hires a US person (from the IRS standpoint) to be the managing manager for the sole purpose of opening an account for the company in a US bank, and that person does not get any salary from the LLC, does this make the company ETBUS?

You would need to get legal advice on this for a qualified tax attorney.

A bank would open the account in the company's name with the managing member as the sole authorised user. So how would you use those banking facilities? You would need to be using his login details and his card number, which would basically be fraud as you're not authorised by the bank to carry out transactions on behalf of the company.

The other issue is that you would need an operating agreement that gives the manager full control over the company. If the IRS ever saw this, I think it would create issues in terms of establishing whether you are ETBUS.

 

[dvm]

Thank you, KraftyAndy. You also mentioned that:

Disregarded entities owned by non-resident aliens are now required to file a 5472 and 1120 form to the IRS. You do have reporting requirements and failure to file this form (any non-resident owner of a disregarded entity should have done so already for the FY 2017), will result in an automatic $10,000 penalty - Instructions for Form 5472 (12/2017) | Internal Revenue Service

If a LLC was registered at the end of Jan, 2018 and does not even have a bank account (but an EIN has been issued for it though), is it required to file those forms anyway? If so, what is the due date?

Thank you.

 

[Luka Alegre]

I have set up my LLC and got my bank account opened as a non US resident from delawarefile.com. They had the cheapest service I could find and they got it done in like 3 weeks. I would recommend checking them out.
Best regards.

 

[Martin Everson]

I have set up my LLC and got my bank account opened as a non US resident from delawarefile.com.

That sounds Interesting. So I went to their youtube channel and after 5 seconds...... What part of America are they based in?

 

[JimmyWho]

United States of New Delhi

 

[Flatworld]

United States of New Delhi

hahaha

 

[Bmw850]

United States of New Delhi

You made my day , thank you