All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Pioneer
Posts: 2
Registered: ‎01-04-2018

Bank account for WY LLC for non-US person non-US resident no US operations/income

I'm a European living in Europe and considering creating a WY LLC. My plan is not to do any business in the US (no US clients or any administration of the company from the US). So I should not pay any taxes in the US. So I am in the exact same situation as the guy in this question.

 

Does it matter where the bank account is located? I've heard that I should keep foreign earned money outside the US, so I cannot use a US bank when invoicing my clients, or else I must pay US tax on it. My personal opinion is that is should not matter where the bank account is because if I should not pay any US taxes, it does not matter where the bank account located. Does anybody have a thought on this? Maybe it only matters if I have US income (and should pay at least some tax)?

 

Thanks for any thoughts!

Associate (Neighbor)
Posts: 336
Registered: ‎04-03-2013

Re: Bank account for WY LLC for non-US person non-US resident no US operations/income

Hello and welcome to the community.

 

The answer might be a bit more involved then you were expecting but let's start with the bank account question.  What matters in the case of taxes for the USA is where the business was conducted. So here are a couple resources to refer to, otherwise I would suggest sitting down with a tax professional who deals with international taxation and can go over your structure in more detail for what to worry about.

 

https://www.irs.gov/individuals/international-taxpayers/effectively-connected-income-eci

https://www.irs.gov/publications/p519

 

Regards,

Caleb