# UK contractor working for US LLC TAX LIABILITY



## UTICArisk (2 mo ago)

Good Day Forum. Advice accept with appreciation. 
Looking at working for a renewable energy company in the US. It will be a 12 month contract but on a rotation basis 6 weeks on 6 weeks off.....
I currently am operating through a UK limited company as (PSC). 
Where are my tax liabilities UK or US as I am resident for tax in the UK.
What is the simplest and most efficient option ? 
Assistance great accepted 👍


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## Bevdeforges (Nov 16, 2007)

Will you be doing the work in the US or in the UK? Normally you are tax liable in the country where the actual work is being performed. If you'll be working in the US, what sort of visa will you be working on?

If you are working remotely from the UK, you just keep paying in your taxes and social insurances as you are doing.


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## UTICArisk (2 mo ago)

Hi, Thanks for the quick reply, I will be working on an E1 visa and the work will be predominantly in the US.


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## Moulard (Feb 3, 2017)

The work you perform for the UK company while in the US will be considered US sourced income.

The US will have the primary right to tax that income and you would be able to claim tax credits for US taxes paid to offset your UK tax liability.

If you have significant control of the company then there is the risk that your UK company will have permanent establishment in the US by virtue of you managing it from the US.
So long as you avoid say renting premises that you use to manage your UK company then you can probably avoid it

But it can get tricky when dealing with State business taxes - US States are not party to the treaty, and can do what they like.
The rules related to business taxes vary from State to State, but your UK company could very well owe US State tax on Income generated in any US State where there is a nexus of economic benefit.
If you know where you will be based and where your US client will be based, it would be prudent to look into local personal and business income taxes.


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