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Raj1
Level 3

Self Employment Income and living overseas

I live overseas and have self employment income from customers based in the US and get paid in the US.

 

My LLC is based in the US with a branch office overseas. All the work is done overseas for US customers.

 

Should I input my self employment income under Schedule C or under form 2555?

 

Thanks

 

 

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3 Replies

Self Employment Income and living overseas

@pk ?

pk
Level 15
Level 15

Self Employment Income and living overseas

@Raj1 , if your LLC  ( under US  State Laws ) is a single member LLC, then  for US taxes it is a dis-regarded entity i.e. you file a Schedule-C showing all your  income , all allowable expenses, pay US taxes on the net income and Self-Employment taxes  ( a 15.3% on most of the net income ).  All of this TurboTax will do for you.

Next if I am to assume that you a US person  ( citizen/ Green Card ) and not residing in USA ( i.,e. the work was all done abroad ( India  ? ), then this income stream would be characterized as foreign {self-employment/ earned} income and as such may be eligible for exclusion from US taxes up to a max ( set each year ).  So to look into this more :

(a) are you US person?

(b) which state is your llc based on -- do you a physical address etc.

(c) are you sole owner of the llc.

(d) which country are you in?  When did you arrive there ? and are you still there ? --- we need a continuous 12 month window/ test period  of which at least part falls in the tax year and that you have been away from the USA for 330 days  ( within this 12 month period ) ?  Give me the period , if you would please 

(e) anything else that may affect  this discussion 

 

please .

I will circle back once I hear from you.

 

Namaste ji

 

pk

Raj1
Level 3

Self Employment Income and living overseas

PK,

 

Thanks for your reply its much appreciated.

 

Raj

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