Self-Employed's Tax Issues

Self-Employment Tax (Social Security and Medicare Taxes)

Many times in filing, we are required to provide tax return package. Some of our clients insist they don’t have tax return package because they are self-employed. 

我们常常需要让客人提供报税记录。 有的客人坚持说他们没有， 因为他们是自雇人群。 

We so wish this is true, don’t we? Self-employment tax refers to Social Security and Medicare taxes, equivalent to those who work for others. Social Security and Medicare taxes of most wage earners are figured by their employers, whereas self-employed figure it out by filing schedule SE.  Wage earners’ half of SE taxes are paid by employers, whereas self-employed pay the whole portion. 

我们多么希望如此， 是吗？ 自雇税是社保和医保的等同税目。 社保和医保税一般是由雇主计算的， 而自雇人要自己通过Schedule E 来算。 一般雇主承付一半的社保和医保税， 自雇承付所有的税。 

Self-Employment Tax Rate

The 2010 Tax Relief Act reduced the self-employment tax by 2% for self-employment income earned in calendar year 2011. The self-employment tax rate for self-employment income earned in calendar year 2011 is 13.3% (10.4% for Social Security and 2.9% for Medicare).  The Temporary Payroll Tax Cut Continuation Act of 2011 extended the self-employment tax reduction of 2% for calendar year 2012 so the rates for 2011 remain in effect for 2012. For self-employment income earned in 2010, the self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).

自雇税的税收是多少呢？ 2010年减税法将自雇税的税额降了2％。 自雇税的税额是13.3%. (10.4%的社保和2.9%的医保。） 2011临时减税法又将此税率延到20120年。 

Immigration Investors’ Watch for U.S Security Laws

U.S Investment Immigration program, especially regional centers program, have been a hot topic among immigration investors and advisors. Majority attention as to do and don’t has been given to US immigration law. However, because when a regional center forms a limited partnership or limited liability company in which the EB-5 investor would become a limited partner, the regional center is offering a security, a regional center must comply with federal and state laws in conducting the offering of securities. 

Securities laws are designed to protect investors by providing accurate information about potential investments and punishing persons or entities who harm the investors and the financial markets. The investors should recognize that not every every investment is safe and not every professional who offers to helps through the process has necessary expertise. 

The securities Act requires that all securities sold must be registered with the SEC, unless exempted by the rules. Basically the law states that if all the investors are accredited investors then the regional center is exempted from registering information with SEC. However, if a regional center conducts general solicitation and advertisement, the regional center would be required to register the securities or find another another exemption. 

If a regional center is not exempted from the registration, the process would take three years of audited financials, or if it qualifies as a smaller reporting company, two years of comparative audited balance sheet data in annual financial statements. The regional center cannot offer or sell securities until the registration statement is effective. What this means to EB5 investors is that they cannot sign a subscription agreement until effectiveness of the registration statement. From a time perspective, the investor cannot afford to wait for the process of a registration statement to be prepared and filed with the SEC, and then for the SEC to declare the registration effective. 

Therefore, it is the regional center’s obligation to comply with the conditions under SEC laws. The investors will want to do his or her own due diligence to ensure the regional center is complying with all applicable securities laws. 

Why LLC

Why LLC?

LLC has gain its increased popularity in the past years based on professionals’ advices. But it has been a challenging task to explain to foreign investors about tax benefit LLC entails. 

LLC逐渐在过去若干年里越来越受专业人士的推荐。向外国投资者解释为何选择LLC确一直是个难题。 

From income tax perspective, an LLC is not a separate tax-paying entity in the eyes of IRS. Profits, losses, deductions and credits are allocated to each member who is separately and individually liable for his share. This scheme is called tax passing through. The benefit of it is that the company’s income is not taxed before it is allocated to members, unlike in corporation.

从收入税的角度来说，LLC在IRS的眼里不是一个纳税体。 所有的盈利、损失、减免等等都是分到个体拥有着。 这个计划叫做Pass-through. 这样的好处是公司的收入在公司拥有者的手中时没有上过税， 而一般公司就有。   

In direct contrast, income and profits are taxed at the corporate level when earned, then taxed again when distributed to the various shareholders as dividends. 

S corporations are taxed in a somewhat similar fashion as are LLCs. The tax burden on retained earning in an S corporation passes through to the individual shareholders. Good news is that there is more to it, that it, the income can be re-characterized. For example, if the S corporation earns profits that would be taxed as ordinary income if earned by an individual, the S corporation can pay the earnings as a “distribution to shareholders.” When one received payment in this fashion, they can avoid Social Security and Medicare tax, currently a 15.3% tax savings. 

S-Corporation和LLC 就很相似。 S-Corporation还更好， 因为有的收入可以做为给拥有者的分配， 有的呢可以做为工资。 这样可以避免缴纳Social Security and Medicare 税。 这样还能省15.3%的税呢。 

Unfortunately, all owners must be US citizens if a LLC desires to be taxed as S-corporation. Foreign investors have no better choice than LLC if they want to best protection and least hassle. 

不幸的是， 只有美国公民才能申请以S-Corporation的方式缴税。 LLC对于外国人从个人资产的保护到最少的麻烦方面，是最好的选择。 

Tax Issues For Foreign Investors 外国投资者面临的税收问题

Along with the surge of green-card oriented foreign investment into green-card, several taxes issues arise. It’s common question from foreign investors that what form of company should they adopt. To answer the question correctly, two factors, state formality and taxes, must be taken into consideration. 

随着绿卡的高潮， 外国人到美国开公司的越来越多了。 需要开什么样的公司于是便是最常见的问题。 在这个问题上，两个重要的因素要考虑在内， 一个是州政府手续问题， 一个是税收问题。 

From a corporate perspective, the LLC provides the same veil protection as a legal entity to its members but is subject to fewer formalities. Non-US members’ than a traditional corporate structure but has the same limited liability protection for its members. Units or interests that are issued to non-U.S. persons do not require any formal registration under exemptions to certain federal and state securities laws.

从公司的角度来讲， LLC为他们的拥有者的私有财产提供的保护是一样的。 但同时，LLC的拥有者的投资不需要象其他公司一样要向有关部门申报。 

From a U.S. income tax perspective, an LLC may be treated for tax purposes either as a disregarded entity or a partnership. The income, profit, deductions, and losses generated by the partnership generally flow through the LLC to the investor on a pretax basis as shown on a Schedule K-1. Unlike corporations that may be taxed twice, the LLC’s tax flow through members’ personal taxes, therefor is imposed once. 

从美国收入税的角度来讲，LLC在IRS的眼里不是一个纳税个体。 它的收入， 盈利，税收减免或损失都分配到个人处， 由个人直接上税。 不象Corporation， 一次收入有可能交两次税， LLC的收入只上一次。 

Domestic U.S. investors who are partners expect to pay taxes, based on their prevailing U.S. federal and state tax rates and income and cash distributions received from the LLC, as shown on each partner’s Schedule K-1. Foreign partners may not have these expectations. Indeed, how does a foreign partner who 1) is not physically located in the United States, 2) does not maintain an office in the United States? Under the Internal Revenue Code of 1986 and its accompanying regulations, if a foreign partner has business activities, offices, or employees within the United States, his or her distributive share of partnership income is deemed to be “effectively connected” with trade or business conducted within the United States.

美国人每年都要按一定的税率纳税。 那么外国人呢？ 尤其是没有住在美国的外国人呢？ IRS 1986的税率规定这样的外国人的税收按照国际贸易的方式交。 

Reopen Case

A Hatian National who was ordered deported in 2000 and later married an American citizen. We filed a request with Immigration and Customs Enforcement to join us in a request to reopen his case before the Board of Immigration Appeals. After many months of negotiation with the Office of Chief Counsel Trial Attorney, they agreed to join us and our client will now be able to adjust his status to lawful permanent resident through marriage.

一个海地来的移民， 2000年获得了驱逐令。 后来和一个美国公民接了婚。 我们向美国移民和海关执法部门提出联合申请重新开案的申请。 经过若干个月的协商， 他们同意了。 我们的客人最终获得了绿卡。 

We may be able to do that for you too. 

我们也可以为你做类似的事情。 

Under US Immigration Law, when the judge orders deportation or removal of certain individual, the case is closed. However, unknown to many people, it is not always over. 

根据美国移民法律， 当法官下令驱逐后， 整个案件就结束了。 但， 许多人不知道的是， 有的时候不总是这样。 

In the event there is a change of law, or an argument or aspect of the case that was overlooked, your lawyer may request the court to reconsider the case;  whereas if there is a new law, new facts or changed circumstances, a counsel may request the court to reopen the case and to hear the case all over again. 

有的时候， 如果驱逐令下达后90天内， 有的时候案件可以重新打开审理或重新考虑。 请求可以直接向法庭提出。 

Both types of the requests must be made within 90 days of removal order with one exception where the ICE join the motion to reopen. 

The last situation is what we are talking about here. We can represent clients who have deportation order against them but have changed circumstances to move to reopen the case. The success depends on specific case and the time of decision ranges from 6 weeks to 6 months. It may take a few rounds of negotiation with ICE. But overall, it is the last resort for a lot of people and thus it is, in most cases, worthy of trying. A consultation with us may help with accurate assessment. 

可是当90天已经过去了， 法庭就不能直接接收重新开案的申请。 但这也还没有完。 如果美国移民和海关执行部同意联合请求重新开案， 法庭也会重新考虑案件。 这样的请求完全取决于美国移民和海关的判断。 他们的决定一般会在6个星期和6个月之间做出。 欢迎向我们咨询你的机会。 

Hope After Deportation

A Hatian National who was ordered deported in 2000 and later married an American citizen. We filed a request with Immigration and Customs Enforcement to join us in a request to reopen his case before the Board of Immigration Appeals. After many months of negotiation with the Office of Chief Counsel Trial Attorney, they agreed to join us and our client will now be able to adjust his status to lawful permanent resident through marriage.

We may be able to do that for you too. 

Under US Immigration Law, when the judge orders deportation or removal of certain individual, the case is closed. However, unknown to many people, it is not always over. 

In the event there is a change of law, or an argument or aspect of the case that was overlooked, your lawyer may request the court to reconsider the case;  whereas if there is a new law, new facts or changed circumstances, a counsel may request the court to reopen the case and to hear the case all over again. 

Both types of the requests must be made within 90 days of removal order with one exception where the ICE join the motion to reopen. 

The last situation is what we are talking about here. We can represent clients who have deportation order against them but have changed circumstances to move to reopen the case. The success depends on specific case and the time of decision ranges from 6 weeks to 6 months. It may take a few rounds of negotiation with ICE. But overall, it is the last resort for a lot of people and thus it is, in most cases, worthy of trying. A consultation with us may help with accurate assessment. 

移民婚姻和婚前（后）财产协议

婚姻是一生一世的承诺。 但不幸的事实是，离婚是很平常的事。 在西方国家， 50％ 的婚姻以离婚结束。 现在通过网络而建立的恋爱关系的一对夫妻， 离婚率更是高达70％。 新婚夫妇， 在爱情的甜蜜间隙，应该严肃讨论财产问题。

当双方的财富数量有重大差异， 或即将有重大差异， 或双方或一方有子女要保护或赡养， 或双方或一方拥有生意； 双方或一方有大数额的欠债等等， 夫妻应该在婚前公开所有的财产资料， 签订协议。 这就是我们常常听到的婚前财产协议。 

在移民婚姻中， 这种财产协议尤其重要， 因为夫妻往往只是经过短暂的网络交往就决定结婚了。 双方对彼此各方面的了解不能说非常充分。 为了防止因金钱问题而引发的离婚， 也为了防止离婚的过程中昂贵的律师费用， 夫妻双方在婚前应该签订财产协议。 

如果婚前协议因为各种原因没有签订， 夫妻还可以签订婚后财产协议。 如果有一些情形， 婚前协议没有考虑周到， 夫妻也可以签订婚后财产协议。 

无论是婚前还是婚后协议， 非常重要的是要把所有可能的情形考虑进去， 并且双方都要100％公开自己的财产或欠债情形。 否则协议有可能被视为无效。 所有的努力都白费。 另外一个让此协议有效的重要的因素是双方要确保都是在完全理解协议条款的前提下自愿签订的协议。 

因此，为了真正有效地保护双方的经济利益和婚姻， 双方应该听取各自律师的意见。 千万不要行而上学， 觉得只要有一张纸， 哪怕是抄来的都行。