LLC Partnership pay NO Taxes
Ankita:
The 30% rate is NOT on the LLC; it is on YOUR BROTHER (see below).
Since you are in the United States, you would pay taxes at the progressive rates imposed for those who income effectively connected to the U.S.
Your brother, on the other hand, is taxed at a flat 30% for HIS share of the taxes. The partnership is required BY LAW to file a special form for foreign partners and withhold 30% of the foreign partner's share of the profit, then pay those withheld funds with the form. I cannot remember the Form number off-hand.
Since all of the deductions are done prior to the distribution of the profit, and since the flat 30% tax is already paid, your brother would have NO NEED to file a tax return on his partnership profits, since he could NOT recover anything in the form of a refund.
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