Forming a LLC in US

Originally posted by : murphy
	I have a STPI registered Pvt Ltd company in India. Now I want to register a LLC in USA with the same name since it will make things easier for business. What is the best way to structure the relationship between LLC and indian Pvt Ltd company? Should the LLC be subsidiary of the Indian company? Will I have to pay tax in USA? Will it affect my STPI status? All agreements between US clients will be done with the US LLC and the payments will also be received into the LLC account. Can I transfer all the money to my indian Pvt Ltd company?

Yes You can form LLC in the same name if it is available there in USA. It is always advisible to form a subsidiary there as in case you need to send any of your manager there on L1 Visa then it will be more helpful.Also you will have to pay all relevant federal & state taxes there of any kind.  Thereafter once you repatriate that money back into your account will be tax free in India as there is double taxation treaty between USA & India.

Good Luck.

The money repatriated shall be taxable in India. If its in the form of dividend then the same may be taxed at 15% as per new budget provisions.