{"id":6960,"date":"2024-07-30T14:16:16","date_gmt":"2024-07-30T12:16:16","guid":{"rendered":"https:\/\/digitalizeglobal.com\/?p=6960"},"modified":"2024-09-12T22:41:12","modified_gmt":"2024-09-12T20:41:12","slug":"trotz-us-kunden-llc-steuerfrei-betreiben","status":"publish","type":"post","link":"https:\/\/digitalizeglobal.com\/en\/operate-tax-free-despite-us-customers-llc-2\/","title":{"rendered":"Despite US customers: Operating an LLC tax-free"},"content":{"rendered":"

Are you a non-US citizen and would like to use your LLC to do business with US clients without becoming liable for tax in the USA?<\/strong>
\nThis guide explains how this is possible - with specific examples and references to official US laws.<\/p>\n

Basics: Passive vs. active income<\/h2>\n

First, it is important to understand the difference between passive and active income for non-U.S. residents.<\/p>\n

Passive income<\/h3>\n

Passive income such as interest, dividends and license fees are subject to the USA of a withholding tax<\/a> of 30% (Internal Revenue Code (IRC) Section 871(a)).<\/p>\n

Example:<\/strong> For $1,000 license fees from a US company, $300 is withheld for taxes.<\/p>\n

Active income<\/h3>\n

Active income from a US business is treated differently. As a non-US citizen without Physical presence in the USA<\/a> you are generally not subject to tax as long as you have no \"nexus\" (tax nexus) in the USA.<\/p>\n

Tax-free business activities with US customers<\/h2>\n
    \n
  1. Product sales to US customers without a US presence:<\/strong> According to IRC Section 864(b), the mere sale of goods to the US does not trigger US tax liability as long as there is no nexus.
    \nExample:<\/strong> Your dropshipping business sells via a     Non-Domestic<\/a> LLC (Exempt-LLC) products to US customers. Without a physical US presence, this income remains in the US. USA tax-free<\/a>.<\/li>\n
  2. Digital products and services:<\/strong> The sale of digital products or services from the abroad to US customers is in the USA<\/a> tax-free if the service is provided outside the USA.
    \nExample:<\/strong> As a web designer in     Germany<\/a> you offer your services to US customers. This income is not subject to US taxation.<\/li>\n
  3. Use of independent US service providers:<\/strong> The use of independent agents in the USA does not trigger any tax liability (IRC Section 864(c)(5)).
    \nExample:<\/strong> A US fulfillment service ships your products. As long as this service works independently and not exclusively for you, there is no nexus.<\/li>\n<\/ol>\n

    Further examples of tax-free income from US sources:<\/h3>\n

    Software and apps<\/strong><\/p>\n