How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask npvadvisor Your Own Question
npvadvisor
npvadvisor,
Category: US Tax
Satisfied Customers: 26042
1929974
Type Your US Tax Question Here...
npvadvisor is online now

I am interested in applying for remote work which is

Customer Question

Hi.I am interested in applying for remote work which is advertised on job platforms in the US. Im based in the UK. I have a disability which makes it difficult to work outside the home and this gives me access to more work. I was considering setting up an LLP in Wyoming who will sort out bank accounts ect.
Is there any issues with this as an approach.
Is it possible to apply for work in the US on this basis or will US companies not countenance this approach.
Is there anything that could go wrong from a tax pointThanks.
Submitted: 17 days ago.
Category: US Tax
Expert:  Virtual-mod replied 16 days ago.
Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Expert:  Guillermo Senmartin replied 16 days ago.

Hello! My name is***** and I am a licensed attorney with more than 18 years of experience. I am here to assist you with your questions. If I do not respond quickly, I promise I will reply as soon as I can. It may take a little time to research and write your answer, I could be helping other customers, or I could be attending to personal clients as I have my law practice.

I can only answer the U.S. immigration part of your question, not the tax part. For that you would have to contact an accountant or tax attorney. If you are OK with me answering just the U.S. immigration part of your question, how much of your own money will you invest in the U.S. company? What is your level of education? In what?

Customer: replied 16 days ago.
I was not planning on investing money in a US company. I'm a qualified accountant (CPA). I was planning on becoming a digital nomad type person and applying for jobs in the US which are advertised as remote. I did do some research and this provides a good explanation but I just wanted additional advice on the logistics of this. https://jaserodley.com/how-to-open-a-company-in-usa/
Expert:  Guillermo Senmartin replied 16 days ago.

But your idea is to run the company remotely from the UK or you want to be physically in the U.S.? If you are going to be physically in the U.S., that's where it becomes challenging.

Customer: replied 16 days ago.
I will not be physically in the US and I was planning to get the US company to pay the salary into my ltd company account. It also has the advantage that it saves them health insurance. Sometimes companies in the UK give the option of self-employment or employee status.
Expert:  Guillermo Senmartin replied 16 days ago.

Ok. Then if you do not plan to come to the U.S. at all, I will opt out because it is not a U.S. immigration law question. A different expert should be able to help you. Good luck.

Expert:  npvadvisor replied 15 days ago.

Hi. My name's Lane. Looks like your previous expert has opted out of the question.

.

I hold a Law Degree, a BBA, an MBA (Finance Specialization), and CFP & CRPS designations as well,

I've been providing tax, corporate law & accounting, financial, and Social Security advice to clients on three continents since 1986.

.

Bear with me while I read through what's transpired and then I'll write up my response. Give me just a moment.

Expert:  npvadvisor replied 15 days ago.

US companies paying individuals that are not on US soil on a contract basis is one of the strongest trends we see in this arena. (For many of the reasons you mention)

.

MOST will ask for two things (they should, MANY of my US business owner clients do this)

  • A W8-Ben, to certify that yo8u are a foreign national, and
  • a signed statement saying that you are not doing the work on US soil.

(NEITHER of these things is filed with IRS, but rather kept in your files with them to document that there is no reason to issue a 1099 OR to withhold any tax)

Customer: replied 14 days ago.
Thanks. I want to create the impression that I am in the US and get paid into a bank account using an LLP. I want to apply for jobs in the same way as any american normally does. Is this acceptable.
Expert:  npvadvisor replied 14 days ago.

Join the club :0)

.

Which issue are you asking about?

.

The US employer? If that's the case ... No, they MUST know your location and nationality so that they can do the tax reporting (their own reporting) accurately/appropriately.

.

If you are talking about your customers? That's a LITTLE more doable, however, the more ties you have to the US, the more ammunition you give IRS to say that this IS US source income (hence taxable to you, reportable to you, and the employer would need to do tax withholding in that case.

Expert:  npvadvisor replied 14 days ago.

Code §1473(1)(A) provides that the term “withholdable payment” means:

.

(i) any payment of interest (including any original issue discount), dividends, rents, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, and other fixed or determinable annual or periodical gains, profits, and income, if such payment is from sources within the United States, and

.

(ii) any gross proceeds from the sale or other disposition of any property of a type which can produce interest or dividends from sources within the United States.

.

See also Treas. Reg. §1.1473-1(a)(1).

Under both the statute and the regulations, in order for a payment to be a withholdable payment, it must be US source income (which would mean that you were performing the services from within the US)

Note line 2 here:

https://www.irs.gov/individuals/international-taxpayers/nonresident-aliens-source-of-income

Customer: replied 14 days ago.
Hi, This article gives the impression that it is possible. https://jaserodley.com/how-to-open-a-company-in-usa/. Is this acceptable to approach US employers as an employee and get paid into an LLP. It would mean that I would have to produce an invoice and get paid like a contractor.
Expert:  npvadvisor replied 14 days ago.

So, those are the two authorities IRA has to tax

1. your being a tax resident

2. performing the services while IN the US

.

By the way, a tax resident is a US citizen, greencard holder, or one passing the substantial presence test for the tax year in question.

Expert:  npvadvisor replied 14 days ago.

The web site you reference says the following: "The author is not a finance, legal or tax professional. He is a self taught entrepreneur"

.

Expert:  npvadvisor replied 14 days ago.

SEVERAL of the paragraphs (and the author's answers) about the kinds of specific questions you are asking here state that he is neither an immigration attorney (which doesn't apply at all here) nor a tax professional .. and MUCH of what is written there is disclaimed by the author by those statements.

.

I would NOT recommend this site to someone who wants to under the legal implications of tax and corporate law here, to a non-US person.

Expert:  npvadvisor replied 14 days ago.

I sincerely ***** ***** this has helped

If you need clarification on this, let me know.

(I’d be glad to come back and explain further.)

Otherwise, thanks so much for using us today!

Lane