Tax, Learning Center

Tax Guide 101

If you have a Delaware LLC, Corp or Non-Profit Organization, you have to file a tax return correctly and on time.  We know that US Non-Resident Tax return can be little complicated if you have no idea how to file 1040NR, 1120, 5472 and other IRS forms.

You have to file even if you do not have a company, but you engaged in a trade or business in the United States during the year.

Nonresident aliens who are required to file an income tax return must use:

  • Form 1040NR, U.S. Nonresident Alien Income Tax Return or,
  • Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents if qualified. Refer to the Instructions for Form 1040NR-EZ to determine if you are eligible.

If you cannot file your return by the due date, you should submit Form 4868 to request an automatic extension of time to register. You must file Form 4868 by the regular due date of the return.

Another matter is that tax obligations might differ for those who have a sole proprietorship to carry on their businesses, compared to the ordinary W-4 workers. First and foremost, an EIN must be obtained in order to progress in the tax procedures. The process to acquire an EIN is rather simple. There are two options available. The first way is through online application and the second one is delivering by a person. After printing out and filing the documents, they are needed to be sent to the Internal Revenue Service (“IRS”). Once the papers are submitted to the IRS, the application will be processed in due time.

In addition to having an EIN, there are also other duties and tax liabilities for the self-employed. Apart from paying the income tax, self-employed must pay the Self-Employment Fee. This fee includes the cost of social security and Medicare. First, net profit and a net loss of the business must be calculated. Income and expenses are relevant to this calculation. For instance, if the costs are less than the salary, the difference is net profit. When values are higher than income, the difference is a net loss. If there is net profit, it is subject to self-employment taxes.

Q&A

1-) I am an Amazon Seller who sell my products from my home country. I do not have a company in the US, I only have EIN. Should I file my tax return forms?

—Yes, You have to file a tax return.—

2-) I am doing drop shipping business, and I am buying from another country and selling to/in the US. Do I have to pay taxes?

—If you are taxable in another country, and you do not have any US source income. Please check with a tax specialist.–

3-) What if I am a trainee or temporarily in the states with the visas F,” J,” M,” or “Q”?

–If you were a nonresident alien student, teacher, or trainee who was temporarily present in the United States on an “F,” J,” M,” or “Q” visa, you are considered engaged in a trade or business in the United States. You must file Form 1040NR, U.S. Nonresident Alien Income Tax Return (or Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents) only if you have income that is subject to tax, such as wages, tips, scholarship and fellowship grants, dividends, etc. Refer to Foreign Students and Scholars for more information.–

4-) I have US based LLC company but, I did not do any business with this company. Do I have tofile the tax return?

–Yes

Lastly, you may be aware that there are tons of forms on the IRS website and this can be both complicated and burdensome for anybody. You do not need to worry about filing your taxes at all. If you choose us to assist you in this endeavor, our tax experts will look at your documents and walk you through the process step by step.

Do you have more questions or do you want to file your taxes with us? Please do not hesitate to contact us!

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