How does treaty transparency work for disregarded LLCs?
I have a single-member LLC in the U.S. that is disregarded for U.S. tax purposes. My tax advisor says that to claim treaty benefits, the LLC must be treated as transparent by both the U.S. and my home country. What does treaty transparency mean, and what happens if my home country does not recognize the LLC as transparent? Could I lose my treaty benefits entirely?
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