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Business Taxation Explained  
LLC Taxation Tutorial  
Can a Nevada LLC “pass thru” income to non US persons or entity’s?  
Yes, however the Nevada LLC will be required per IRS regulation to become a Withholding Agent for the IRS when distributions are made.  The Withholding Agent (The Nevada LLC) must withhold a portion of any distribution made to a non US member and forward this payment directly to the IRS.  The amount withheld depends on whether there is a tax treaty between the United States and the country of which the Non US member is resident for tax purposes.  For example since the untied kingdom has entered into a tax treaty with the United States payments made to UK residents or entity’s are subject to a 15% withholding rate for business income.  For other types of income such as dividends and interest the rate may be reduced to 5%.  The rate is entirely dependent on the terms stated within the applicable tax treaty.  Any such payment made to the IRS shall be treated as a tax credit in the Members home Country.  If no tax treaty exists between the United States and the member country the withholding rate is 30%. 


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