US LLC and NRA

[BenZarski]

Anyone care to offer insight into the pros and cons of a non-US person (non resident alien) using a US LLC as a flow through entity to hold assets with a US stock broker? I know a LLC will avoid US estate taxs and I believe (stand to be corrected) the double tax treaty benefits are still available.

How onerous is IRS reporting?

Thanks.

 

[GRULSTMRNN]

Zero, at least when it comes to Hong Kong residents who are not American citizens or green card holders.

We pay zero capital market taxes here and hence do not pay US taxes when it comes to US listed equity and bond capital gains, interest, or dividends.

Why does an LLC avoid paying US property taxes? Seems like a loophole in US tax code or your misunderstanding? If true would not everyone in the US hold their property in the name of an LLC? even if that applied only to non US non residents.

Anyone care to offer insight into the pros and cons of a non-US person (non resident alien) using a US LLC as a flow through entity to hold assets with a US stock broker? I know a LLC will avoid US estate taxs and I believe (stand to be corrected) the double tax treaty benefits are still available.

How onerous is IRS reporting?

Thanks.

 

[BenZarski]

A LLC owned by NRA does not avoid US property taxes. This is a municipal tax. On the federal level the NRA shareholders can elect to have the LLC treated as a flow through entity and the earning on a stock account are taxed in the hands of the shareholders. No tax on capital gains and the rate of tax on dividends and interest depends whether a double taxation treaty is applicable

 

[murray t turtle]

Anyone care to offer insight into the pros and cons of a non-US person (non resident alien) using a US LLC as a flow through entity to hold assets with a US stock broker? I know a LLC will avoid US estate taxs and I believe (stand to be corrected) the double tax treaty benefits are still available.

How onerous is IRS reporting?

Thanks.

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IRS audits partly by secret selection + partly by, as common sense suggests, the more you make , the more % audited. And plenty give more than 10%; even though that also may increase audit risk-that risk i never worried about[paper proof]
Internet may or may or may not give you some valuable hints; no internet poster takes the place of a CPA. ROTH/back door Roth account .........pays no tax on gain/anything/anytime.Certain restrictions apply.