We advise investors to consult his/her tax advisor. Investors our provided copies of Schedule K-1/tax return which will include their share of the partnership’s income or loss on their investment. Investors can use these documents to file their personal tax returns.
o If a foreign person derives income directly or indirectly from a US trade or business and that income is treated as ECI, then foreign person must file an Income tax return in the US.
o An Indian investors who invests directly with a US based LLC, would be required to comply with the following requirements.
o a. Indian Investor needs to provide applicable Form W 8 ben to US LLC.
o b. File income tax return in the US.
o c. Claim foreign tax credit on Indian tax return against the taxes paid on income earned in the US.