Legal Question in Tax Law in California

L1 Visa: Tax Issue

Hi

I am on an L1 visa in the US. Apart from my job, I run a very small business in which i sell used books over the internet, and make some profit. I plan to file a tax return declaring this as a business income, apart from my usual salary.

I would soon be leaving for my native country. Can I continue running this business from there?...that is, does a tax payee have to be ''physically'' in the US if he is running such a business? Or can he be in some other country, run his internet based business, and at the end of the year, pay taxes for the dollar amount he/she earned?

Also, pls tell me if the tax rates for both business and salary earnings are the same.

Thanks in advance !!

S


Asked on 7/31/02, 2:10 pm

1 Answer from Attorneys
Lawrence Graves Coolidge & Graves PLLC

Re: L1 Visa: Tax Issue

Yes, you can continue to run the business once you leave the USA.

Unless you have a physical presence, independent of your then-ended job, you would likely not have sufficient activity in the USA for continuing tax jurisdiction; this is dealt with in tax treaties as well as the default rules in the Internal Revenue Code, so you should consult a lawyer and let him know your home country of legal residence. You might not have any ongoing tax obligations to the USA.

Best wishes,

LDWG

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Answered on 8/01/02, 8:02 am


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