My business partner and me are non-resident, non-US person, that wants to form an LLC in Wyoming remotely to transact inventory and services from Asia and The United Kingdom primarily in Africa and mostly in the country of Zimbabwe. All trade transactions would be routed through bank accounts in the name of the LLC and profits would inevitably be held in the name of the LLC. What would be the tax implications for the LLC and for my business partner and I?

As non-resident, non-US persons forming an LLC in Wyoming, the tax implications for your LLC and for you and your business partner personally will depend on several factors, including the nature of the business activities and the presence of any tax treaties between your countries of residence and the United States. For the LLC: 1. **U.S. Federal Income Tax**: If the LLC is treated as a disregarded entity or a partnership for tax purposes (which is the default for LLCs with more than one member), it does not pay federal income tax itself. Instead, the profits and losses flow through to the members (you and your business partner). However, if the LLC engages in a trade or business effectively connected with the United States (ECI), you and your partner would be subject to U.S. tax on that income. If the LLC only has income from outside the U.S. and does not effectively engage in a U.S. trade or business, then there may be no U.S. federal income tax liability. 2. **State Taxes**: Wyoming does not have a state income tax, so there would be no state income tax on the LLC's profits. However, you should be aware of any other state-level taxes or fees that may apply to the LLC, such as annual report fees or franchise taxes. For you and your business partner: 1. **U.S. Federal Income Tax**: If the LLC earns income effectively connected with a U.S. trade or business, you and your

Get Started

Get your tax questions answered