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Info LLC Presence Income Results

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Understanding US LLC Taxes

ECI - Effectively Connected Income

Income that is connected to a US trade or business. This includes income from services performed in the US, or income from a business with US presence (office, employees, inventory).

FDAP - Fixed, Determinable, Annual, Periodical

Passive income like dividends, interest, royalties, and rents. Subject to 30% withholding by default, but tax treaties can reduce this rate significantly.

Tax Treaties

The US has tax treaties with ~65 countries that can reduce or eliminate withholding on certain income types. File Form W-8BEN to claim treaty benefits.

State Taxes

Some states have income tax, franchise tax, or both. Wyoming and Nevada have neither. Delaware has a $300 franchise tax but no income tax for non-residents.