Earning Income from UK company and residing in U.S?
April 27, 2009 – 3:53 pm
stevesd92 asked:
Over the next few months, I will begin earning income from a U.K. company as an independent sales representative. I live in the U.S. Some of the sales will come from other countries, such as Japan, China, UK, and other EU countries. Am I subject to U.S. tax on all foreign transactions? I have not set up a business and am wondering about my options. Does anyone know where to start? Income potential will be residual income over a 5-10 year span resulting in fairly significant revenue.
Quincy
Over the next few months, I will begin earning income from a U.K. company as an independent sales representative. I live in the U.S. Some of the sales will come from other countries, such as Japan, China, UK, and other EU countries. Am I subject to U.S. tax on all foreign transactions? I have not set up a business and am wondering about my options. Does anyone know where to start? Income potential will be residual income over a 5-10 year span resulting in fairly significant revenue.
Quincy
2 Responses to “Earning Income from UK company and residing in U.S?”
Assuming this is a legitimate sales job, the work is fully taxable by the IRS as US-source work. It’s also subject to 15.3% self-employment tax.
Setting up a business will not reduce the tax bite.
By v b on Apr 29, 2009
A U.S. citizen or resident must report the world wide income from any source.
Read: Read:
By Jss on Apr 29, 2009