US LLC or Aust Pty Ltd ?

[MTR]

I would highly recommend anyone operating some sort of business/LLC in US get the right advice from an accountant who understands US tax laws its incredibly complicated and there is a form for just about anything and everything.

From experience ATO is a joy to deal with in comparison to IRS.

I received $10,000 penalty due to an oversight, IRS penalise first and then work through the process. It's not a walk it the park and they don't care if you are a foreign investor. The penalty was eventually waived.

If you are not prepared to go through the right professional then fool you, as I mentioned penalties are very high.

I went from an accountant in Australia who was apparently skilled in US tax/law however he made so many errors because he just filled out the forms incorrectly then in turn cost me money. Now, I only use an accountant in US, has made a huge difference, he understands the beast and has made my life less stressful. His details are above.

MTR

 

[Aaron Sice]

....+1 here!

also dependent on which state your LLC is incorporated in - no doubt why the original OP wanted a Delaware inc.

 

[Aaron Sice]

It is. But the tax laws have special rules for foreign controlled companies that are controlled by Australian residents.

This is no doubt to reduce the effects of people setting up companies in tax havens and not paying tax here.

are you talking about a C / S Corp or an LLC?

 

[Aaron Sice]

I should edit. My C Corp pays 15% when the LLC makes the money. I'm a sole CEO. Although last year it paid 35% from memory.

My C Corp doesn't distribute a dividend ( ie it rolls the profit over - unusual for the US) so my income from ATO s point of view is non - assessable but non exempt. I still don't know exactly what that means, it seems like a contradiction in terms but that's the word from the top. Something to do with the LLC / C Corp combo being a foreign hybrid? Would love to have this explained to me....

So I don't physically receive a divvy so unable to tax.