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Updated over 6 years ago,
Withholding tax on foreign owned LLC doing flips
Hi everybody. I wondered if anybody on here has had a similar issue to one we are trying to solve?
We flip homes in the USA and have a single member LLC, 100% foreign owned for this activity. UP until this year the dollar amount for withholding tax was 300K and our transactions were all well under so no issue. Now it has changed to 60K so every sale we make is caught. This means paying 15% of the sales price, (which is usually more than our entire margin), to IRS and waiting 3 months for an exemption.
As we are a business this effectively cripples our cashflow so I wondered if any other non residents have found a solution or any whizzes on here have any ideas?