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UK Co employing US Cit'zn in US - Possible?

We are a UK LLP and we wish to employ a US Citizen to work for us in the USA

We are a UK LLP.  We wish to employ one or two US Citizens to work in L.A. on our behalf, servicing clients when we are not there.  We have an Entertainment Business management service, but dont want to open a Corp or LLC in the US, as all our clients contract via our UK LLP in US$, to which they pay us.  None of the partners wish to move to the US, so we will take it in turns to visit under a B-1/2 Visa (Work/Pleasure), but we need one or two local US Staff to look after US client's needs when we are not there.  Services will be normal Family Office/Business Management admin/PA/basic book keepign tasks.

Is this possible?

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18th Jan 2019 15:58

Yes, but you'll need to appoint a local payroll agent to deal with wage tax and FICA (social security) filing. You need detailed advice from a US-based professional, not a forum like AWeb.

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18th Jan 2019 17:58

A UK LLP is a corporation unless it has elected for US purposes to be disregarded. As the LLP is most likely a corporate entity, is the LLP filing a protective 1120-F? Is the LLP filing a California corporate tax return? Are / will the LLP members file individual Federal & California State tax returns reporting income earned while in the States? Will the US payroll agent David Heaton wisely suggests also take care of US Federal & State withholding for the LLP members in relation to income attributable to US workdays? What advice has the LLPs existing UK accountant given regarding these proposals. Outside of tax, is the business required to be licensed to perform these services in the State of California &/or the city of LA? Have the LLP members received US immigration lawyers advice regarding whether they can work as described on a B-1/B-2 visa?

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By JamesG
18th Jan 2019 19:06

Thank you for your notes. I should clarify:

- The LLP is a UK LLP. We will not open any trading entity in the US. The 2 x members of staff will be employed or contracted from the UK LLP.

- The clients in the US are contracted to the UK LLP for the services provided and pay us in the UK.

- All reporting services are carried out in the UK for the client, regardless of their location.

- The US clients contract with their own US accountants in the US and these accountants then provide us with the data.

- In the US we intend only to have PA's there to help the clients with day to day personal admin help - no advice will be given by the US staff.

Main question is; can a UK LLP contract or employ 2 x US Citizens to work in the US on behalf of the UK LLP?

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By Matrix
to JamesG
18th Jan 2019 20:03

Why ignore the above advice?

There will be at least payroll and state tax implications but you will also need a US tax adviser to address any federal tax implications depending on what your US employees do.

Give the facts to the person providing the advice and they will come up with the implications, action will be required so don't assume all ok by repeating the facts.

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By zarar
19th Jan 2019 01:52

You have been given excellent advice already and I can't add anything to that, but agree with it all.

This is a complicated area and you need specialist advice in the UK and the US to ensure you are compliant with all legislation.

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