--- title: "Sole Proprietorship vs LLC for Non-Residents: ECI, FDAP and 30% Withholding" slug: sole-proprietorship-vs-llc-taxes-non-residents category: "Taxes & Compliance" author: "Ashwini Dhangar" date: 2026-10-19T00:32:41.741+00:00 updated: 2026-11-02T18:31:00.643267+00:00 readingTime: "10 min read" description: "Why the sole prop vs LLC tax choice differs for non-US founders: ECI vs FDAP, 30% withholding, treaty positions and liability, in plain terms." tags: ["sole proprietorship vs llc taxes","Tax & Compliance","non-resident"] canonical: https://www.nexfyla.com/blog/sole-proprietorship-vs-llc-taxes-non-residents humanView: https://www.nexfyla.com/blog/sole-proprietorship-vs-llc-taxes-non-residents --- # Sole Proprietorship vs LLC for Non-Residents: ECI, FDAP and 30% Withholding > Why the sole prop vs LLC tax choice differs for non-US founders: ECI vs FDAP, 30% withholding, treaty positions and liability, in plain terms. --- *Human-readable view: * *Canonical: * *NexFyla — Form your U.S. LLC or Corporation from anywhere: *