Taxation for LLC (1 Canadian, 1 American)
We plan on hiring 1-2 employees to work in Illinois. I understand that the company will pay all required taxes in the US for our employees and my partner, but my confusion comes in for my own earnings. Will I have to pay taxes based on US tax laws even though I will not be working in the US? As I seem to understand now, I do not, but I haven't found a straight answer yet.
Thank you in advance.
Generally ownership in a US partnership requires a non-resident owner to file a US non-resident tax return, because any profits from a US partnership are considered income effectively connected to a US business. That would mean a Canadian partner would need to file a form 104NR to report his share of profits from the partnership.