topic Question - What should I file for the IRS? in Business & farm

Question - What should I file for the IRS?

andremonzani — Wed, 10 Jul 2019 03:24:29 GMT

Hello,

Please, if anyone can help me, I'd appreciate it.

My situation is as follows:

We have an LLC Delaware with 2 non-resident and non-American members (MMLLC). According to what I have researched, the LLC is treated as parntership for tax purposes. So I should not send the Form 5472 or Form 1120.

Okay, according to what I've seen, I should send the Form 1065. But I don't have any U.S. sources of income. I have no presence in the USA, I have no customers in the USA, I have no employees in the USA, I do not sell products to the USA. I have no dependent agents in the USA. I definitely do not apply to effectively connected income.

In that case, foreign and non-resident partners, even if they have no income in the U.S., must submit the K-1 and Form 1040-NR ? No partner has ITIN, the Company has EIN.

Should we fill out only Form 1065 or other forms?

I thank everyone who can help.

Re: Question - What should I file for the IRS?

pk — Wed, 10 Jul 2019 03:42:50 GMT

@andremonzani , I do not understand the motivation/ need of this entity. Therefore it is hard to suggest a course of action -- need some answers first -- (a) why did you form this partnership in the USA ( under US federal and State tax laws) when the business is all abroad i.e. no planned or actual US sourced/ connected income? (b) Which country are you from ( all from the same or from different countries and if so which )?; (c) what kind of business is it ( retailing through Amazon or similar or direct sales on the internet )? (d) do you not have any expenses in the USA ( like paying fees to Credit Card co or ?? )? (e) how did you form the Delaware Partnership without SSN or ITIN i.e. without a tax ID ?

Re: Question - What should I file for the IRS?

andremonzani — Wed, 10 Jul 2019 03:48:22 GMT

@pk

a) The intention was to use the privacy and tax benefits of DE's jurisdiction.

b) The two partners are from Brazil.

c) Ecommerce - Dropshipping

d) I have U.S. payment processors, I have a U.S. registered agent and I am hiring a U.S. marketing agency. No one is an employee, they are all independent agents.

e) I made the Company through Delaware Inc, a provider that helps foreigners set up businesses in the US. I did not need an American Tax ID, although I now have an EIN.