Tax implications in the US for a UK-based LLC owner?

So, hypothetically speaking:

An American citizen sets up an Inc. in New York City to handle some business. For context, they’re fully employed here in the States, getting a steady paycheck, and their employer stays current on all their payroll taxes.

What kind of tax obligations does this person have with our local tax collectors? Are they just looking at corporate income tax and Sales Tax, or are there extra surcharges involved? Also, can taxes be paid in the US if their primary residence is here?

What about those various quasi-taxes and other fees? Since it’s a New York City-based firm, I assume those wouldn't apply, but feel free to set me straight if I'm wrong.

Thanks

So, apparently people just open an Inc. without anyone ever noticing? 😁

Paul Kim8 said:So, apparently people just open an Inc. without anyone ever noticing? 😁

It's basically the same deal as running a business in the US—say you have a steady job where you get a paycheck and all your taxes and Medicare/IRS stuff are handled (and yeah, those contributions are the employer's headache, not yours, but that's a whole other thing). If you decide to launch your own company on the side, since you're the owner, you don't actually have to be "employed" by your own firm if you've already got full coverage through your day job. You can run an LLC or a corporation without being on your own payroll. As the owner, the government isn't coming after you for anything unless you're acting as the director and pulling some shady legal stunts—but if you play it straight, file your invoices, and pay the taxes your company owes, you aren't liable for anything else besides the taxes on any profit you actually take out. It works the same way with an Inc. in the USA, Ireland, or wherever. No one stops you from being an owner, and as long as you aren't drawing a salary or taking fees, you aren't obligated to report or pay personal income tax because an Inc. is its own legal entity, just like here. I won't get into director liability, but that doesn't fall under US Law anyway. Basically, you set up an Inc. in the USA, invoice a client in America, they wire the cash to your bank account, you issue the invoice without Sales Tax, report it as income, and if you have enough expenses, you might end up paying zero tax at the end of the year if your revenue stays under a certain threshold—whereas in Ireland, where the rate is 12.5%, there isn't really a floor; profit is taxed regardless of the amount.
hope that helps
Best,
Thomas Bailey6

Hey everyone, I’ve got a quick question for you all.
So, basically, me and my buddy are looking into starting an Inc. for our photography business just so the US government doesn't absolutely skin us alive. We aren't exactly full-time employees or anything; we mostly just pick up various freelance gigs. I was wondering, can the two of us act as co-owners of an Inc. in the USA and just operate normally without running into any massive headaches here in the States? Like, would we still have tax obligations to the US government, and do we actually have to report ourselves and our accounts to the IRS? Anyway, I really need some advice from someone who actually knows their stuff regarding running an Inc. over in the USA.

Thanks a million!

I assume you're hit with capital gains tax once you actually withdraw your profits. As for anything else, I haven't a clue.

It’s such a shame this thread has gone quiet...🙂

On Tuesday, March 17th, there's going to be a seminar at the Forum Convention Center—part of the Green Gold series over on Radnički Street in Chicago—focused entirely on launching a business in the US.

Sabbir Patwary, an accountant hailing from New York City, will be breaking down everything you need to know about setting up shop in America—we're talking tax structures, payroll costs, how to wind things down if you change your mind, and pretty much any other essentials for entrepreneurs looking to make the jump to the global stage.

Tickets are $6.75.