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  1. #1
    Newbie
    Join Date
    January 18th, 2005
    Posts
    13
    Hi,

    I'm NOT U.S. resident & I don't stay in U.S. either.

    I registered a LLC in Nevada (Apr 2002) and I received $11,000 revenue (until Dec 31 2002). I paid $8,000 for hosting, advertising and other fees. I made net $3,000 before tax, accounting or CPA fees.


    Questions:
    1. I registered the LLC on Apr 1 2002. Do I file tax on Apr 1 2003 or Dec 31 2002?
    2. I'm NOT U.S. resident. Do I need to file tax?
    3. Do I need to hire a CPA to do my accounts OR I can do my accounts and file the tax myself? How?
    4. Since I'm NOT staying in U.S., what are the forms I need to file? Can someone point to me exactly the URL to download the form(s)?
    5. Is CPA compulsory? How much do they charge for a small business with $11K revenue, $8K cost and net $3K profit?


    I am making pockey money and I don't want to get into trouble with IRS or anybody.

    Help anyone?


    Diana

  2. #2
    ABW Ambassador
    Join Date
    January 18th, 2005
    Location
    North Carolina
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    I cannot give you tax advice, but can tell one thing - Check IRS.GOV for anything regarding US taxes. Every corporation needs to file taxes by March 15 for any year if the financial year ends on December 31. If the financial year ends on another date, it will be 75 days after the year-end. To find when is the year-end, one needs to check company registration papers. The filing date can be extended until August 15 after filing some paper works by March 15.

    Disclaimer again: do not take this as tax advice. Call IRS or check IRS.GOV.

  3. #3
    ABW Ambassador John Kruger's Avatar
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    January 18th, 2005
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    It depends on the LLC regulations in Nevada. My LLC uses a schedule C with my personal taxes.

    You should contact a CPA to do it the first time, and then you may be able to handle it after that.

    John

    Once a year, go someplace you've never been before.

    www.teampb.com

  4. #4
    Newbie
    Join Date
    January 18th, 2005
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    13
    I wrote to 3 different CPA, all gave me different answers!

    First CPA:
    1. ALL LLC either setup on Jan 1 2002 or June 1 2002, accounting yr ends Dec 31 2002.
    2. I should hire him for $1,500 to audit account and submit form 1120. I only have 30 transactions this year.

    Second CPA:
    1. ALL LLC should submit tax return EACH QUARTER (??)
    2. I can either submit my account & form 1120 on Mar 15 or end of 12 months in operation.
    3. I should hire him for $2,500 per month to keep my accounts

    Third CPA:
    3. I can submit the account (do I need someone to audit?) AND the form 1120 myself at IRS.gov web site.
    4. He did not mention which 1120 form I should submit since I'm Australian, or do I need to file personal income tax in U.S.
    5. He only deals with customers at minimum $1million revenue (so I'm too small to deal with)





    SO, anybody here with a LLC. What actually did you submit?

    So far I'd paid:
    - My resident agent annual fee $300 (the guy who register my LLC)
    - Nevada Secretary of State $85

    I was told I should also submit:
    - form 1120 (which form? There are 6 different form 1120 to download at IRS.gov!)
    - my accounts (my excel copy will do? Any auditing? submit to whom?)

    Any other stuff I need to do? Anybody with a more friend CPA, please revert. I need HELP!


    Regards,
    A helpless girl trying to make some pocket money!

  5. #5
    ABW Ambassador
    Join Date
    January 18th, 2005
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    4,423
    Can I ask, why as an Australian Citizen you created a US LLC?

    Most people in the US incorporate to simplify taxes and afford themselves some protection if sued. I am not sure how this make sense since you are an Australian Citizen.

    Chet

  6. #6
    Newbie
    Join Date
    January 18th, 2005
    Posts
    13
    Simple concept.

    I earn 100% affiliate programs in U.S. Almost 90% of the advertisers only accept U.S. resident or U.S. company as affiliate.

    I register a U.S. LLC, I can run those programs.

    I made $11,000 from 5%-10% sales commission, and I net $3,000. Not bad for a part-timer

    Don't you think so?

  7. #7
    Newbie
    Join Date
    January 18th, 2005
    Posts
    47
    Wouldn't a mail forwarding address in the US be cheaper and more effective?
    You can even have a bank account in the US without having to become an LLC.

    OnlineSoldier.com

    The webmaster's guide to the war which is the web. Analyze monetization, visitor retention, and promotion.

  8. #8
    ABW Ambassador
    Join Date
    January 18th, 2005
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    I have no idea how a foreign entity works with LLC's, but lets pretend you are taxes the same as a US citizen. So take your $3000 and chop off about 35% - $1050 (of course depending on your expenses and if they are deductible, it could be much much more).

    Lets really lowball the quotes you are getting for accounting and say $450 to handle taxes etc. Figuring it cost you roughly $150-200 to get the llc in Nevada. That leaves you with about $1300.

    Spending $8000 to make $1300 take home profit? Not a very good investment from where I am sitting. One wrong move or bad month and you have no profit.

    If that was my return in affiliate marketing, I wouldn't waste my time.

    Chet

  9. #9
    ABW Ambassador mousejockey's Avatar
    Join Date
    January 18th, 2005
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    Hi hope4you,
    I'm an Aussie too and never found the need to Incorporate in the US.

    Some programs will knock you back, but if you contact the merchants and explain the circumstances, there usually isn't a problem.

    I have to agree with Chez Noir, your overheads are way too high.

    Sorry I can't help with the LLC, but best of luck finding the solution.

    "I haven't failed, I've just found 10,000 reasons why it doesn't work"
    Thomas Edison

  10. #10
    ABW Ambassador
    Join Date
    January 18th, 2005
    Location
    Honiara, Solomon Islands
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    Hope4you,

    I made the same mistake Incorporating both in the UK and in the US. My main motivation was a desire to utilise drop shipping with onsite shopping cart placing me in full control of revenue acceptance and the ability to set my own margins. The downside is you have full responsibility for the entire range of e-commerce required services. Unless you utilise this model all we are doing is giving away our profits. The affiliate model would be unbeatable if there were a way to nullify outside influences that prevent tracking.

    Cheers, DPG

  11. #11
    Newbie
    Join Date
    January 18th, 2005
    Posts
    13
    It make sense to get a LLC in U.S. if you plan to collect payment in US Dollar. else you will need a social security number which I don't have. You will save time to wait for advertiser approval - usually they never reply to non US.


    Looking at my stats, I could generate $4000 commission and earn $1000 end of month. This is good money for a part-timer.

    Does it worth the trouble? I would say yes if the reward is encouraging. Just 10 months in this game I'm already making 50% of my full time job

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