Oh Baby! Posted March 25, 2014 Report Share Posted March 25, 2014 Client stumped me today....... LLC has only foreign investors. Investor(s each) have a tax ID#. I assume that each foreign investor will get a K1. When does the LLC withhold and submit withholdings to the IRS? at the time of the issuance of the K1 or only when funds are sent overseas to the foreign investor? Who is responsible for doing the withholdings? Quote Link to comment Share on other sites More sharing options...
mircpa Posted March 25, 2014 Report Share Posted March 25, 2014 I dont think a corporation or LLC who has foreign investors can be an S corporation. Probably you need to file 1120. For a corporation to be an S corporation, all its shareholders needs to be US citizens or green card holders. Since they are foreign citizens, check if they are subject to 28% backup withholding. Quote Link to comment Share on other sites More sharing options...
Lynn EA USTCP in Louisiana Posted March 25, 2014 Report Share Posted March 25, 2014 Maybe this multi-member LLC, with foreign investors, files the default partnership return, form 1065, which also generates k-1's. Quote Link to comment Share on other sites More sharing options...
DevM Posted March 25, 2014 Report Share Posted March 25, 2014 Client stumped me today....... LLC has only foreign investors. Investor(s each) have a tax ID#. I assume that each foreign investor will get a K1. When does the LLC withhold and submit withholdings to the IRS? at the time of the issuance of the K1 or only when funds are sent overseas to the foreign investor? Who is responsible for doing the withholdings? LLC is responsible for the withholding.. It should be paid when K1 is generated at the time of filing 1065. Quote Link to comment Share on other sites More sharing options...
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