Single Member LLC income - is it US income for purpose of RNOR?

rxs · Post by **rxs** » Tue Jul 27, 2010 8:34 pm

Hi,

I am a US citizen R2Ied in Sept 2009 with OCI card.

Is single-member-LLC income considered 'US income' from an RNOR perspective?

Thanks,
rxs

Going_nowhere · Post by **Going_nowhere** » Wed Jul 28, 2010 12:09 am

I'm not a tax expert, but I think it is considered as "your" income because you take distribution out of the LLC.

rsom · Post by **rsom** » Wed Jul 28, 2010 12:17 am

I would imagine that the LLC is incorporated in USA and hence deemed to be a domestic corporation. Obviously,you are required as a domestic corp to file taxes in US and spillover any income thay you receive in India by way of distribution as a Indian RNOR.If no such distribution exists, you do not have to ,IMHO.

That said,you still will need to file your taxes as a USC .

Again,circumstances differ and if these amounts are materially big amounts, you are better suited talking to a tax expert

MrLong · Post by **MrLong** » Wed Jul 28, 2010 12:44 am

LLC -- by nature if definition, is a corporation for legal protection/stature and for taxation purposes is considered a pass-through to the individual.

For all taxation purposes, the income derived from the LLC is passed through to the individual and suffers the tax rate at the individual hands.

sigma · Post by **sigma** » Wed Jul 28, 2010 9:43 am

I think OP's question is different. During RNOR period, passive income outside India is not taxed(in India). Earned income regardless of the country where it is sourced from, is taxed. To me, the distribution to the individual looks to be a earned income rather than passive income.

sigma