Questions

It is a digital marketing business with clients in the US, but not physical presence or employees or contractors in the US. The LLC is registered in PA. I am a US citizen. Would one qualify for FIFE?

Yes, you need to report the income from your single member LLC. If you live abroad and qualified for the earned income exclusion, then you may be able to exclude a portion of your earnings. A U.S. citizen is required to report all of their gross income, derived from whatever source, even if they live outside of the United States. If you live outside of the U.S. and meet either the bona fide resident test, or the physical presence test, then you may be able to exclude a portion of your earned income from U.S. federal income taxes. However, you will not be able to avoid self employment taxes on the net earnings passing through from your single member LLC. The U.S. federal tax rules for U.S. expats can be incredibly complex. I would highly recommend you seek the advice of a competent U.S. tax adviser that specializes in U.S. expat taxation.


Answered 3 years ago

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