I want understand the tax for an LLC, which is owned by 2 partners. Is there any additional tax like a self-employee tax or income tax fo…

Answer by A Quora admin:

If you and your partner own a US LLC, it is by default taxed as a US partnership.  Unless you have made an election to have your LLC taxed as a corporation, then the partnership needs to file a Form 1065, US partnership return and report each partner's share of partnership income.

US partnership income is considered US source income and therefore as non-residents both owners (partners) have to file a US Form 1040NR or non-resident US tax return and pay US tax on any partnership earnings.  Assuming both partners are general partners, then the income from the partnership is considered self employment income subject to self employment tax; however, non-resident partners are only required to pay US self employment tax if they live in a country with a "totalization agreement" with the US. You can find more about there agreements at: International Programs.

The 30% withholding is a standard rate and it is possible that you qualify for a lower withholding rate, depending on what country you live in and the terms of a tax treaty, if any, between your home country and the US.  You will receive credit for withheld taxes toward any tax that you owe when filing you non-resident tax return and in many cases if you are withholding at 30%, you will in fact receive a refund of some of the withheld tax.

Depending on what state your LLC is registered in you may also need to file some state level tax returns and pay state taxes.  You will at a minimum need to file a state franchise tax return each year.

I want understand the tax for an LLC, which is owned by 2 partners. Is there any additional tax like a self-employee tax or income tax fo…