Offshore (Non-Resident) Delaware LLC for (day) trading US stocks

Discussion in 'Taxes and Accounting' started by blueraincap, Aug 24, 2017.

  1. I am a resident in Asia and been (day)trading US stocks through a HK broker with 0% capital gain tax. I also have a Delaware LLC for some non-US related import business, which is not subject to any US tax. Now, if I open a brokerage account in HK using this LLC to daytrade US stocks (I am trading from outside of US as a non-US resident), will I be subject to US tax? What do you think
     
  2. DeltaRisk

    DeltaRisk

    Where is your citizenship?
     
  3. Sam Puvan

    Sam Puvan

  4. Not us
     
  5. DeltaRisk

    DeltaRisk

    Traderjohnsblog likes this.
  6. If you trade under a Delaware LLC, your LLC will be subject to US tax, because your LLC is registered in the US.
     
    Here4money likes this.
  7. DeltaRisk

    DeltaRisk

  8. I actually think I won't be taxed, although not 100% sure, as owner of a LLC I should be taxed as a non-resident.
     
  9. I found this:
    --------------------------
    Trading in stocks, securities, and commodities.

    If your only U.S. business activity is trading in stocks, securities, or commodities (including hedging transactions) through a U.S. resident broker or other agent, you are not engaged in a trade or business in the United States.

    For transactions in stocks or securities, this applies to any nonresident alien, including a dealer or broker in stocks and securities.

    For transactions in commodities, this applies to commodities that are usually traded on an organized commodity exchange and to transactions that are usually carried out at such an exchange.

    This discussion does not apply if you have a U.S. office or other fixed place of business at any time during the tax year through which, or by the direction of which, you carry out your transactions in stocks, securities, or commodities.

    Trading for a nonresident alien's own account.


    You are not engaged in a trade or business in the United States if trading for your own account in stocks, securities, or commodities is your only U.S. business activity. This applies even if the trading takes place while you are present in the United States or is done by your employee or your broker or other agent.


    https://www.irs.gov/publications/p519#en_US_2017_publink1000222317
    https://www.irs.gov/pub/irs-pdf/p519.pdf
     
  10. fritol

    fritol

    Hi blueraincap

    1)
    Is it working for you to trade US financial instruments on US exchanges via US based or non EU brokerage (e.g. Interactive brokers in my case) registered to your US based offshore company? I.e. no cap gain tax no detailed tax returns on your trades either, no other duties.

    2)
    How is it for Pattern daytrading restriction, if you know, does it apply to a US offshore Llc account?

    3)
    Other question regarding doing business in Asia (none in the US) from e.g. Delaware based llc:
    Is there also no income tax and no other obligations?

    thx
     
    #10     Nov 17, 2018