k man Posted May 5, 2005 Posted May 5, 2005 We have a client, presently a citizen of Venezuela. He has applied for U.S./Puerto Rico citizenship, and is waiting and working on that process. He resides in Puerto Rico (over 2 years), and is treated as a Puerto Rico resident for tax purposes. He is the sole owner of an LLC (disregarded entity, he files Sch C) that is a member of a Fl LLC, located in florida. He does work for business in its Puerto Rico office. The LLC is profitable, and he draws a salary from the LLC as well. Thus, I believe he is paying Puerto Rico taxes on his salary, and U.S. taxes on his share of the LLC profits.
mbozek Posted May 5, 2005 Posted May 5, 2005 In order to deduct contributions to the LLC plan he needs to have US compensation, not dividend income from the LLC. mjb
k man Posted May 12, 2005 Author Posted May 12, 2005 would all LLC income be considered dividend income? i know it would get reported on a K1.
mbozek Posted May 12, 2005 Posted May 12, 2005 You have to talk to his accountant to see how the LLC income is reported. mjb
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now