Tax filing in single-member LLC companies

[memosse]

“Although single-member LLCs are not income, expenditures for the conduct of business are considered business activity, and the appropriate tax forms should be filed as such.” Which expenses incurred for the conduct of business are considered business activities? Can you give an example? What forms should a business owner who is not a US citizen and lives outside the US file?

[DianeW777]

A single member limited liability company (SMLLC) should file a 1040-NR using Schedule C as though they were an individual and not a company. The SMLLC is a 'disregarded' entity or not recognized as a company for tax purposes.

If you fall into any of the categories below, you must file Form 1040-NR for your income received from the United States (US). 

• Taxation of Nonresident Aliens

A.  Who Must Files

If you are any of the following, you must file a return:

1. A nonresident alien individual engaged or considered to be engaged in a trade or business in the United States during the year.
2. A nonresident alien individual who is not engaged in a trade or business in the United States and has U.S. income on which the tax liability was not satisfied by the withholding of tax at the source.
3. A representative or agent responsible for filing the return of an individual described in (1) or (2),
4. A fiduciary for a nonresident alien estate or trust, or
5. A resident or domestic fiduciary, or other person, charged with the care of the person or property of a nonresident individual may be required to file an income tax return for that individual and pay the tax (Refer to Treas. Reg. 1.6012-3(b)).