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US trade or business (USTB)

Regular, continuous business activity in the US that makes a foreign person's connected income taxable there; decided by facts, not where you formed.

The short answer, then the detailChecked September 2026

The detail

What it means in practice.

The law doesn't define the phrase. Courts and the IRS look at whether activity in the US is considerable, continuous and regular: an office, staff, a dependent agent who can sign contracts, or inventory held and sold there. Forming a company in Wyoming doesn't create one, but running a warehouse in Ohio might. It's worth putting the question to an accountant once.

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