Understanding Foreign LLC Formation
The requirement to file for a Foreign LLC is usually to expand one’s business operations or to open an additional retail or brick-and-mortar location in a new state.
Tax Requirements for a Foreign LLC
Paying state taxes as a domestic limited liability company can be achieved by filing different forms with the IRS. Here are the common tax forms a foreign LLC may be required to file:
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Form 1120-F: A foreign limited liability company uses this form treated as a corporation for U.S. federal tax purposes.
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Form 1065: If the foreign LLC is treated as a partnership for tax purposes (e.g. if it has multiple owners), it may need to file Form 1065.
Steps for Registering a Foreign LLC
How Do I File for a Foreign LLC? Each state has some specifics about the process of opening a Foreign LLC, but the basic steps you need to take are the following:
- Register a Domestic LLC
- Choose a state to expand into
- Visit the Secretary of State website
Tax Considerations for Foreign Owned LLCs
Do foreign owned LLC pay taxes? The foreign partner of a US LLC will be deemed to be engaged in a US trade or business. The LLC must withhold 35% of its profits for taxes, paid and filed on a quarterly basis to the IRS.
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