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rabbid · Mar 4, 2009, 11:33 AM

Hi
Here is my question:

My wife, me and our daughter are scheduled to move down to the US so I can do my MBA. We both work in Canada now.

We both own a UK LLP (Limited Liability Partnership). In the UK the LLP does not pay tax as it is like the LLC and we don't pay UK tax because we are not residents there and we do not provide services in the UK or conduct our business in the UK.
Our LLP provides services to US companies.

How do we declare our income from the UK? In the US as capital gains? Do we need to file a tax return as foreign students?

Thanks

Rabbid

MukatA · Mar 5, 2009, 01:42 AM

On F1, you do not pay SS tax and Medicare tax for 5 years. You file nonresident tax return. You will report income earned while in the U.S.
For LLP you will work in the U.S. and provide services to the U.S. company, then this is self employed income to be reported on U.S. tax return.

rabbid · Mar 5, 2009, 08:34 AM

The LLP is a UK entity, it invoices US companies we just draw the profits.
Is that still the same?

AtlantaTaxExpert · Apr 28, 2009, 02:07 PM

The LLP is a foreign-sourced business, which means you do NOT have to include it on your U.S. tax return if you file as a non-resident alien, filing Form 1040NR or 1040NR-EZ.

It gets added to your tax return the year you start filing either as a resident alien or as a U.S. resident (Green Card holder) or U.S. citizen.