Foreign investors MUST apply a tax ID for their investors in Nevada, so they will be taxed as local, instead of paying 30% of the sales later..

Foreign investors MUST apply a tax ID for their investors in Nevada, so they will be taxed as local, instead of paying 30% of the sales later..

Joseph Shah works for Casino as auditor, therefore he is very familiar with IRS auditing rules, he says that 1099 people file income in Schedule C and they have 90% high chance than W2 people for being audit.  So here is what you have to know:

1.       Don’t write off one single item for more than 25% of your incomes, such as car mileage, you have to reasonable.

2.       Always have separate credit card for your personal expenses and business expenses, apply a credit card or debt card just for your business

3.       If you have to pay handyman for repair, don’t pay them cash, pay them by checks

4.       You must set up a LLC or S corporation for your business, have your company pay you commission to your company, apply a tax ID.  This way, you are filing tax under schedule E as K1 which also is known as 1065 or 1120S, your chance of being audit is less

5.       If you receive overseas funds, keep all the wiring paper and treated it as a loan from your family, instead of a gift, so you don’t have to pay gift tax

6.       If you have to receive funds from your clients for any reasons, don’t deposit to your account, deposit to a trust account for your business

For your foreign investors, advice them to contact a lawyer or CPA to apply a tax ID for their investors in Nevada, so they will be taxed as local, instead of paying 30% of the sales later..  Always put the properties under LLC and under Trust.