That’s a very common question!
The IRS (Internal Revenue Service) considers that individuals only need to pay Income Tax in the United States if they are Engaged in Trade or business in the country.
Since a Single member LLC, is taxed at the personal level, if the company doesn’t have employees or physical operations in the US, the member may fall into this exception and might not need to pay taxes.
However, there is a detail that we need to take into consideration.
Even though the company is tax-exempt, it must still complete Form 5472 + 1120 Proforma and 1040-NR. In other words, still need to submit a tax return, even if you don't need to pay any taxes.
We recommend that all cases that may fit the rule go through a call with a tax specialist, as it’s necessary to analyze all the details of the operation to ensure that it’s not necessary to pay taxes.
If you still have any questions or need further assistance regarding this topic, we are available to assist you. Simply click here to submit your support request and our team will assist you.