Foreign LLC vs. US LLC - What are the Default Tax Treatments?

Under U.S. tax rules, there are certain default tax treatments that apply to Limited Liability Companies (LLC).

The default rules vary depending upon whether you have a U.S. domestic LLC or a foreign LLC.

Foreign LLCs are gaining in popularity as more countries enact LLC legislation similar to the Delaware Limited Liability Company Act.

A US LLC is by default a pass-through entity (disregarded entity or partnership), but a foreign LLC is likely going to be a corporation for federal tax purposes.

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DISCLAIMER: I am a licensed attorney and certified public accountant (CPA) in the State of Florida. I am not a financial advisor. The information provided in this video is for entertainment purposes only. No such communication is provided in the course of an attorney-client relationship, and no communication is intended to constitute legal advice. You should speak with your own tax and legal professionals to discuss your circumstances before performing any of the tax, legal, or accounting strategies demonstrated in this video. Thank you.