Ask HN: US LLC and Thailand Taxes

by nevodavid10 on 12/22/2023, 5:23:45 AM with 2 comments
I have gotten conflicting answers from different international lawyers and accountants. I am a tax resident of Thailand (foreigner) and am forming a US LLC in Delaware.

I plan to use my business credit card as much as possible for expenses. Bring some income to Thailand every month and pay taxes on it. And move some of the money to a personal bank out of Thailand as a dividend.

I got two answers: 1. This is all good; it sounds like 100% legitimate. 2. An LLC is a pass-through company, so if the company is registered with you, you will be taxed on everything you have in the LLC.

Have you ever encountered any situation like that?

  • by gregjor on 12/22/2023, 7:00:10 AM

    You don’t mention if you have US income tax liability. US citizens and permanent residents must file and pay tax on all income from any source, regardless of tax residency elsewhere.

    Under US tax law an LLC with one owner is a pass-thru entity. Income gets reported on your 1040 schedule C.

    I don’t know Thai tax law. Getting a work permit or permanent residency that would make a foreigner subject to Thai taxes is complicated and uncommon.

  • by explain on 12/22/2023, 8:07:48 AM

    "An LLC is a pass-through company, so if the company is registered with you, you will be taxed on everything you have in the LLC."

    Correct by default.

    You can elect for the LLC to be taxed as a C Corp (form 8832), and this way the LLC will not be a pass-through entity.