American taxes if living outside the US and get paid by US company on a US bank account
I agree with Joe, having the money deposited to the US bank account may land you in trouble. Technically, a US business paying a foreigner must withhold 30% of the payment, unless a tax treaty says otherwise. The US business should do that based on your W8-BEN/W8-ECI form that you should have given to the business before being paid. I'm guessing, that by paying to your US bank account, you (and your American counterpart) are trying to avoid this withholding. That may cause trouble for both of you. I would suggest you talking to a professional (EA/CPA licensed in the State where the business is located) and having the situation resolved ASAP. You may not be liable for the US taxes at all, but because of incorrectly reporting the income/expense - you and the US business may end up paying way more than the $0 you otherwise would have, in penalties. Technically, if you earn in US (being paid there, which means you have a work visa) and live in other country, you must pay taxes in both countries. International treaties try to decrease the double-taxation, and in this case, you may pay in your country the difference of what you have paid in US. ie. your Country is 20% and USA is 15%, you will pay 5%, and vice-versa. This works only with certain areas. You must know the tax legislation of both countries, and I recommend you seek for advisory. This site have all the basic information you need: http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Earned-Income-Exclusion Good luck.
"The short answer is that there is no US tax due if all you are doing is moving assets held abroad to the US. Whether you are a ""returning"" US citizen (or will continue your residence in the Philippines) is not relevant to this. The long answer is that you may be liable for a lot of other fines and taxes if you have not been doing any of several things correctly. As a US citizen, you are required to declare your worldwide income on your US income tax returns. Have you been filing US income tax returns during your time abroad? and have you been declaring the income that you have received from non-US sources each year? This includes wages, interest, dividends, capital gains, rental income from real estate, gambling income, lottery winnings,  Nobel prizes, everything. If you have been paying income tax to other countries on this income, then it is generally possible to get a deduction for this tax payment from the income that will be taxed by the US (or a credit for the tax payment against your US Federal income tax liability) depending on the existence of tax treaties or (when the US Senate refuses to approve a tax treaty) a Double Taxation Avoidance Agreement between the US and other countries. In some cases, foreign earned income up to a certain limit is not taxed by the US at all. Even if you have been filing US income tax returns correctly, and can thus account for the $45,000 in your savings account, or you received that money as a gift or inheritance and can account for it on that basis, have you been filing reports with the US Treasury since the year when the total value of all your foreign bank accounts and other financial assets (stocks and bonds etc but not real estate) first exceeded $10,000?  In prior years, this was a matter of filling out and submitting Form TD F 90-22.1 but more recently (since 2010?), you need to fill out and submit FinCEN Form 114. Have you been submitting the required documentation all along? Note that there are severe penalties for failure to fine FinCEN Form 114, and these penalties do not get waived by tax treaties. In summary, you might (or you might not) have several other tax or legal issues to worry about than just taxes on the transfer of your money from the Philippines to the US." Well according to US logic, an individual can be born outside the US to an American parent, never have even stepped foot in the US or even be aware of their American citizenship, but still owe taxes and reporting to the IRS. There are no true international corporations as each country has to have its own subsidiary in order to follow local laws. (well EU being common market can just have one EU) Those subsidiaries are owned by whatever percentage by the headquarters, but are distinct companies. As the name says, its for income earned in a Foreign country. If you have been paying US income tax on this while living in the US, nothing is going to change here. You should be informing yourself on how to avoid double taxation in your new country of residence. Passive income earned abroad (dividends, interest) also do not fall under this exemption.  The purpose of the Foreign Earned Income Exclusion is to make it easy for expats who work abroad to avoid double income taxation without going through the complicated process of applying for tax credits. The US is the only industrial country that taxes its residents regardless of where they reside. That is also why it only goes to about $100,000 a year. If you are a high earner, they want to make it more difficult. Also as a side note, since you are going to be abroad for a year. I will point out that if you have more than $10,000 in foreign accounts at any point in the year you need to declare this in an FBAR form. This is not advertised as well as it should be and carries ridiculous penalties for non-compliance. I can't count the number of times I have heard a US expat say that they were unaware of this. Does my prior answer here to a slightly different question help at all? Are there capital gains taxes or dividend taxes if I invest in the U.S. stock market from outside of the country? I'm not missing the point. Canada will still charge you/a corporation income taxes on worldwide income so long as you are resident in Canada. If you are incorporated in Canada but resident elsewhere, you are only subject to tax on Canadian-sourced income. In the US, where you are incorporated is the method of determining liability. Why is one method of determining jurisdiction correct and not the other?  If you are a corporation residing in Canada, you still pay Canadian taxes on worldwide income, even if that income is sourced in another country. This often occurs because of misrepresentation of the corporation income. Most of the income in the US is payed at or a little below the 35% rate... But when the figure is calculated non-US income is counted alongside US income.  For some reason, in the US it makes sense for corporations to pay income taxes in the countries they actually made the income in AND the US. Mind you... Only USA and Eritrea have this sort of backwards thinking.  So yeah... If they make $100 worldwide income, out of which $50 is US income, and the company reports $15 in US taxes, they get represented as paying 15% effective tax rate when in reality they payed 30% on US taxes for their US income. except that most companies are small companies and most business owners end up as families at some point.  I'm starting a business abroad and will be taxed at 35% in the USA even if I don't live there.   There's ways to get around it, but I'm not sure exactly how to do it yet nor am I making enough money yet to justify the up front expense of doing this In the United States the general policy is that the IRS would consider it income when you have access to the money. I work for a company that has a contract with another company. Near the end of the year I turn in a time card that has my hours that I worked as of that date. Because they don't pay me until early January the money on the check is counted in the new year. I couldn't touch the money until they issued the check. If they had paid me on December 31st it would have counted as the old year, even if I only had a short window to have access to it before the year ended. It would even count as old year money if I held on to the December check, but didn't deposit it until March. So it would become income when you could use it. So If you could access it via a check, or debit card, or transfer it to the bank it is now income. Of course that is in the United States. You would need to see what the situation is in Singapore.... The edge cases always depend on the country. Your bank doesn't care about your immigration status, it cares about your tax status. You're a US tax resident and will open a US-resident account, not an international account (regardless of where the money comes from). "Its not for US citizens - its for US residents. If the US considers you as a tax resident - you'll be treated the same as a US citizen, regardless of your immigration status. The question is very unclear, since it is not mentioned whether your US sourced income ""from the Internet"" is sales in the US, sales on-line, services you provide, investments, or what else. All these are treated differently. For some kinds of US-sourced income you should have paid taxes in the US already, regardless of where you physically reside. For others - not. In any case, if you become US tax resident, you'll be taxed on your worldwide income, not only the $10K deposited in the US bank account. ALL of your income, everywhere in the world, must be declared to the US government and will be taxed. You should seek professional advice, before you move to the US, in order to understand your responsibilities, liabilities and rights. I suggest looking for a EA/CPA licensed in California and experienced with taxation of foreigners (look for someone in the SF or LA metropolitan areas). Keep in mind that there may be a tax treaty between the US and your home country that may affect your Federal (but not California) taxes." First, yes, your LLC has to file annual taxes to the US government.  All US companies do, regardless of where their owners live.  Second, you will also probably be liable to personally file a return in the US and unless the US has a tax treaty with India (which I don't believe it does) you may end up paying taxes on your same income to both countries.  Finally, opening a US bank account as a foreign citizen can be very tricky. You need to talk to a US accountant who is familiar with Indian & US laws. And if you need to pay business taxes outside of the regular US 1040 form, you can use the IRS' Electronic Federal Tax Payment System (EFTPS). Basically, you enroll your bank accounts, and you can make estimated, penalty, etc. payments. The site can be found here. Do I pay tax to the US and then also pay it in India for my income, or   does my American partner, who holds 15% of the monthly income, pay tax   in the US for his income? Of course you do, what kind of question is this? You have income earned in the US by a US entity, and the entity is taxed. Since LLC is a disregarded entity - the tax shifts to you personally. You should file form 1040NR. You should also talk to a tax professional who's proficient in the Indo-US tax treaty, since it may affect your situation. The United States taxes nonresident aliens on two types of income: First, a nonresident alien who is engaged in a trade or business in the United States is taxed on income that is effectively connected with that trade or business. Second, certain types of U.S.-source payments are subject to income tax withholding. The determination of when a nonresident alien is engaged in a U.S. trade or business is highly fact-specific and complex. However, keeping assets in a U.S. bank account should not be treated as a U.S. trade or business. A nonresident alien's interest income is generally subject to U.S. federal income tax withholding at a rate of 30 percent under Section 1441 of the tax code. Interest on bank deposits, however, benefit from an exception under Section 1441(c)(10), so long as that interest is not effectively connected with a U.S. trade or business. Even though no tax needs to be withheld on interest on a bank deposit, the bank should still report that interest each year to the IRS on Form 1042-S. The IRS can then send that information to the tax authority in Brazil. Please keep in mind that state and local tax rules are all different, and whether interest on the bank deposits is subject to state or local tax will depend on which state the bank is in. Also, the United States does tax nonresident aliens on wages paid from a U.S. company, if those wages are treated as U.S.-source income. Generally, wages are U.S.-source income if the employee provides services while physically present in the United States. There are a few exceptions to this rule, but they depend on the amount of wages and other factors that are specific to the employee's situation.  This is an area where you should really consult with a U.S. tax advisor before the employment starts. Maybe your company will pay for it? As Mhoran said, the risks of buying a bankrupt company are huge, and even successful bankruptcy turnarounds don't involve keeping the same stock. For instance, the GM bankruptcy was resolved by the company more or less selling all its valuable assets (brands, factories, inventory) to a new version of itself, using that money to pay off what liabilities it could, and then dissolving. The new company then issued new stock, and you had to buy the new stock to see it rise; the old stock became worthless. AA could have gone the same way; Delta could have bought it out of bankruptcy and consumed it outright, with any remaining shareholders being paid off at market value. That's probably the best the market was hoping for. Instead, the deal is a much more equal merger; AMR brings a very large airport network and aircraft fleet to the table, and Delta brings its cash, an also-considerable fleet and network, and a management team that's kept that airline solvent. The stockholders, therefore, expect to be paid off at a much higher per-share price, either in a new combined stock, in Delta stock, or in cash.