Not true, especially if you own an LLC, and it's a single owner only. The flat 30% only apply to certain things like if you are working or doing services for a US business, and other things like -
- Interest: If the debtor is a U.S. resident, the interest is generally U.S. sourced.
- Royalties: If the subject property is used in the U.S., the royalty payment is U.S. sourced. Payments made in connection with the sale of certain intangible assets, including copyrights and patents, are generally sourced similar to royalties when the payments are contingent on the productivity, use or disposition of the intangible.
- Rents: If the rental property is located in the U.S., the rental payment is U.S. sourced.
- Personal Services: If the services are performed in the U.S., the payment for those services is generally U.S. sourced.
For instance, last year went to vegas and I got a hand pay. 30% of it was withheld by the casino.
I have an LLC in Wyoming, the income tax is based on the profit and depends on how much I´m earning. That´s because it´s a single owner LLC. if you add another person, then it´s much more complicated, higher, and subject to withholding. I had to pay for a consultancy from a company that has lawyers and accountants that specialize in international business matters like this. I have the video recorded of the session we did, and I remember this was my question regarding the 30% and they explained to me. I would post the video here to help others because I asked the most common questions for non-residents wanting to open a US business, problem is the video call was done in Portuguese.
It´s always a good idea to hire consultancy from an accountant that specializes in international tax. Research first, write down your questions and hire at least a one-hour session. Make sure you also mention the country you are from, as there can be a treaty or something else. Can be costly but it´s worth it.
