Owning a US company to buy a car... Does that mean taxes?
One of the most common questions we hear is about US taxes.
The IRS has a reputation outside the US, it seems.
Here’s everything you need to know about US taxes if you own a company here.
If you’re an international visitor buying and selling your own car through a US company, you might wonder about the taxes here.
Here’s how US taxes for company owners work.
For non-citizens, the IRS only taxes income actually earned in the United States. If you earn money in your home country or anywhere else in the world, it’s up to those governments to collect their taxes on you.
The IRS is the US’ federal (or national) tax collector, and each state has one its own. The rule is mostly the same - states can tax income earned within their borders.
Owning a company doesn’t change the rules. Whether you earned income through a company or as an individual, it’s taxable. But if you didn’t earn any, it’s not taxable.
And even if you earn a little bit of income, the authorities don’t require you to file any returns. For 2019, the IRS reporting threshold is $12,000.
In other words, unless you sell your car for $12,000 more than you bought it for, you don’t need to report anything to the IRS, even if you own a US company.