When exactly does my foreign-owned US LLC become a 'withholding agent' that has to file Form 1042?
I run a US LLC and I keep seeing the phrase 'withholding agent' attached to Forms 1042 and 1042-S, but nobody explains the trigger in plain terms. I'm not a bank and I'm not a big company. Is this only for financial institutions, or can an ordinary foreign-owned LLC become a withholding agent just by making a payment? What is the actual test the IRS uses?
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