I run a design studio from Pakistan and recently set up a U.S. LLC to work with American clients. One of my clients, based in New York, paid me directly for a website project. Another client, however, is from Australia, and I invoiced them through my U.S. LLC, too. Now I’m filing taxes as a nonresident, and I’m confused: is all this income considered “U.S.-sourced”? Or is there a difference based on where my clients are located?
Answer by: abdullah-al-naim
1 month ago
If you\’re a nonresident, income is considered U.S.-sourced when it flows to you directly from a U.S. source, like a U.S.-based client paying you for a service or product. Anything else, like payments from clients outside the U.S. (even if routed through your U.S. company), typically counts as foreign-sourced income.
The key? It’s not just who you are, but where the money’s actually coming from that matters.
To learn everything about US taxation for non-residents:
