Hello,

I'm planning to set up a LLC here is US and leave to India. As I have one US customer ready to use my servcies which I will be doing through my US LLC, but work from my home in India. How this would work for the taxes?

From some sources I came to know that I should be filing 1040NR with Schedule C for my LLC income in USA by end of each year. Do I still need to pay taxes in India for the net income? Can I avail the "Non Ordinadry Resident" status in India for 2 years to get the exempt from tax?

Can I operate the LLC the way I'm thinking like above? Means, just have registered agent here and work from India on behalf of LLC. My US customer will only sign a contract with us based LLC/S-coprp. Since I'm not a GC/US Citizen, only LLC would work.

Thanks in advance if anyone knows how to deal this in better way.

If you set up the LLC in the United States with a "permanent establishment" in the U.S. you make the earnings of this LLC subject to U.S. income taxes.

However, since the work is being done IN Indian, it is likely that the income is also subject to Indian income taxes.

You can definitely claim a credit for the Indian taxes on the U.S. tax return, but I am not sure if the reverse is true. The credit will probably completely offset any U.S. income taxes due.

Thanks AtlantaTaxExpert.

Glad to help!