Bringing on a foreign partner in an LLC

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  • The non US partner files a W7 before filing their tax return to get an ITIN. You normally have to file the W7 with the tax return but there's an exception for "individuals who are partners of a partnership that invests in the United States" - see exception #1(a)
  • Once the ITIN is received, there must be a backup withholding (in the highest tax bracket) with the quarterly estimate. As of 2019 it is 37% for Fed and 12.3% for CA
  • File form 1042 for Fed
  • File form 592 for CA

Notes

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  • 3 months ago by vince