I am Indian and I am planning to form a LLC in Delaware for my web development business (it will not have any physical presence in the US). It will be single member LLC to start with.

So in India will I be identified as a salaried individual or self employed?

  • not sure how the LLC is in any way relevant
    – littleadv
    Jul 1 '15 at 15:38

That would depend on how you are getting paid, you can get paid as employee of US company, it then has to follow all the Indian norms. Quite a bit of paperwork. Else you can get paid as Contractor by the US Company and you are then self employed.

You would need to declare the income of US Company as yours.

  • Basically, the LLC doesn't affect this.
    – keshlam
    Dec 29 '15 at 13:28

If you were to pay yourself via a dividend, rather than a salary, you would be subject to a 15% dividend tax1

However, one other thing you must note is that regardless of where you register the company, the Indian tax authorities will likely consider your company a tax resident of India if you are the only member of the company, as the mind of the company (you) remains in India. So you would owe:

  1. US Corp Taxes (very high)
  2. Indian Corp Taxes (very high)
  3. Indian Dividend Taxes (fairly high)

Why are you looking to register your company in the US? It will be a very expensive endeavour and provide little to no benefit for you.


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