The Taxation of Foreign Legal Entities in the United States

1. Principles of taxation
2. Subjects of taxation
   1. Non resident Alien
   2. Foreign corporation
3. Sources in income
4. Passive income through the share or securities ownership
   1. LLC
   2. Corporations – C, S, Public

The United States (US), as most other countries, taxes income earned within its borders, even if it is earned by foreigners. Generally, only the US sourced income of nonresident aliens and foreign corporations is taxed by the United States. However, some foreign sourced income may be taxed by the US if the income was earned by a US trade or business that was effectively connected to the US.