Substantial Presence Test
Many successful entrepreneurs who own businesses in the United States come from other countries. If you are not a U.S. citizen but you own or operate a business in the U.S. you may be subject to different tax rules. One of the first things you'll need to do to determine what rules you may be subject to and what forms you need to file is to determine your residency status. The IRS has developed the 'substantial presence test' to help you to exactly this. The substantial presence test is applicable to sole proprietors and employees alike and should be your starting point as an international taxpayer. If you pass the substantial presence test, you will be considered a U.S. resident for tax purposes and your worldwide income would be subject to taxation in the United States.