Pass-through taxation

An LLC or partnership passes its profit through to its owners, who report it. A partnership files an information return, Form 1065, and gives each owner a Schedule K-1. A corporation works the other way: it pays tax itself, and its owners pay again on dividends.

For a foreign owner, what passes through is generally foreign-source income if the company has no US trade or business, and the US doesn't tax it. Your own country taxes it under its own rules.