Just sharing a tax strategy - LLC Delaware

[Monzani]

I know that many people are interested in this subject, so I am creating a thread to talk about it.

There are other countries that are safer (less watched), but creating an LLC - Delaware is certainly one of the best options to pay few taxes.

This thread is especially dedicated to non-Americans!

• BEST BENEFITS

Privacy protection;
Remote opening;
Cheap and Simple Maintenance;
Beneficial Tax Treatment;
Liability protection for owners

• INITIAL COSTS

Registered Agent: something like $50
Company Formation: you can pay between $150 and $800, depends on who you hire

• ANNUAL COSTS

State Tax: Currently I pay $329 to keep my company active, it is an annual fee

Federal Tax: ZERO

Renewal of your registered agent: something like $50 a year

• HOW DO I PAY $0 TO THE IRS?

This is an exclusive benefit for those who have a single member LLC. Also, you must not live in the US and you must not be an American.

• This doesn't apply:

If you have an LLC with 2 or more members;
If you created your LLC through Stripe Atlas (considered corp for federal tax purposes);
If you're American or live in the US;

If you want to create a single member LLC - Delaware and are considered a non-resident alien by the IRS, then you must fill out Form 5472 annually.

Since 2017, this form is mandatory for foreigners who own a single member LLC. This form is only informative but is mandatory. If it is not submitted, you may pay a penalty of up to $10,000.

• BANK ACCOUNT

Real bank accounts are a real problem for foreigners who create a single member LLC. Their best alternatives are:

Payoneer: it's not an actual bank account, but it's really useful for receiving payments. It can be used integrated with Stripe, Paypal and other payment methods.

Trip to the United States: if your budget allows, you can travel to the United States. Bank of America and Wells Fargo are simple options for foreigners.

Transferwise/Mercury: are also online options, not real banks but can be very useful to receive payments

• Some companies that can help you create an LLC - Delaware:

• https://www.delawareinc.com/
• https://www.delawareregisteredagent.com/
• https://www.incfile.com/

If there's wrong information I'm available to make corrections.

 

[fadihs]

Thanks!! very appreciated

 

[IamNRE]

So no matter if you make $10k per year or $10 million per year you only pay $400 give or take?

 

[Leader777]

My question is the same as @IamNRE , and also for opening a US bank account all i have to do is go to america and provide them with the LLC and open it easy?

 

[thefrenchvangogh]

Verry good thread !
Just one thing, Delaware is on the radar of everyone and is talked often for it tax evasion so i would suggest to look at a LLC in Wyoming too when you do your research

 

[Monzani]

So no matter if you make $10k per year or $10 million per year you only pay $400 give or take?

if you are a 1-member LLC (non-US and non-resident) and are not considered a corporation, you are a disregarded entity for federal tax purposes, regardless of the value

but you must fill out the information form with your profits

 

[Monzani]

Verry good thread !
Just one thing, Delaware is on the radar of everyone and is talked often for it tax evasion so i would suggest to look at a LLC in Wyoming too when you do your research

yes, wyoming is a good option

 

[AlwaySeo]

yes, wyoming is a good option

I have one part that I dont get it.
If I have my company, ok, and receive payments, for example in my US bank account, I fill out form etc.. However how it goes when we sent from this US bank account, to our resident bank account, for example DE account, we must pay tax, right?

 

[Monzani]

My question is the same as @IamNRE , and also for opening a US bank account all i have to do is go to america and provide them with the LLC and open it easy?

it's very difficult to create a real american bank account via internet

but personally it's really simple, you need to have your company formed + EIN. If you create an ITIN, it will also be even easier

 

[Deleted member 657006]

so what the official problem owning and being in UK.

will UK authorities no of this registred business abroad

or the money that goes in the registered account is that business only not related to your own UK business at all.


in UK you pay tax on anything you earn, but you're saying with you the business way we only pay as you stated no matter what amount with the bank it goes in.

how comes we can bypass the tax from this registered abroad business

sounds too good to be true.

I can not see an account allowing 50k a year in an aboard account without it being taxed (( no way)) sounds iffy

I just want to know how the government will allow me example 50k without paying them any tax contributions don't sound correct


there must be some tax import fee to have much cash while living in UK

 

[Deleted member 657006]

just found out yes you pay tax on the income if you're registred from a different country.

https://www.gov.uk/tax-foreign-income/foreign-income-thats-taxed-differently

if the business you was registring same as your registred self, then your ok , but if a busness is in a diffrent country as your registred , you then pay tax of your country of any income.

makes perfect sense .

so you need to be physically registered to thst country to benifit from a abroad business for tax reasons

 

[AlwaySeo]

just found out yes you pay tax on the income if you're registred from a different country.

https://www.gov.uk/tax-foreign-income/foreign-income-thats-taxed-differently

if the business you was registring same as your registred self, then your ok , but if a busness is in a diffrent country as your registred , you then pay tax of your country of any income.

Yes, that's what I dont understand, how we can "bypass" this step

 

[Deleted member 657006]

Yes, that's what I don't understand, how we can "bypass" this step

just told you ...

so you need to be physically registered to that country to benefit from an abroad business for tax reasons

so for me, I can have any business in any country but the tax I personally pay is the country I am legally registred to.

 

[AlwaySeo]

just told you ...

so you need to be physically registered to thst country to benifit from a abroad business for tax reasons

However if you're physically registered in this country, you aren't considered as a "non-americans" and cannot benefits what OP's told us, that's why I don't get it, hope you see my point mate!

 

[Deleted member 657006]

However if you're physically registered in this country, you aren't considered as a "non-americans" and cannot benefits what OP's told us, that's why I don't get it, hope you see my point mate!

i no why i looked it up , with uk you pay the same as usall.

but maybe in other countrys different rules .

 

[larrydetuvi]

Quite useful info, but incorporating abroad is not always the answer. There is no single answer on taxes. It depends on the country laws. Some countries tax foreign generated income, some dont. Some have special benefits for small business, some don't. If your country has high corporate taxes, you might save some by incorporating abroad. Maybe the problem in your case is not corporate taxes, but rather dividend taxes, or foreign income taxes. If your problem is VAT-like taxes, maybe incorporating overseas won't help much. As in everything, the answer is "it depends".

 

[Deleted member 657006]

Quite useful info, but incorporating abroad is not always the answer. There is no single answer on taxes. It depends on the country laws. Some countries tax foreign generated income, some dont. Some have special benefits for small business, some don't. If your country has high corporate taxes, you might save some by incorporating abroad. Maybe the problem in your case is not corporate taxes, but rather dividend taxes, or foreign income taxes. If your problem is VAT-like taxes, maybe incorporating overseas won't help much. As in everything, the answer is "it depends".

and uk is all of that no go with uk 100%
i enjoyed looking it up .

 

[ivo1017]

I have Delaware LLC, made with Stripe Atlas. You should check that your country and the USA, that have signed a double tax agreement because you should pay the tax for the profit.

 

[iki]

Delaware LLC for non-US citizen is good option but only if you don't do any business in the USA. However, most of IM people do business with USA clients and will need to pay taxes in USA + collect sales taxes (VAT) worldwide + Income tax in their country of residence. Please correct me if I am wrong. I readed info from another website : https://www.delawareregisteredagent.com/how-to/non-us-delaware-llc-corporation . I would not recommend anyone trying to avoid tax or play games, because if you are found later you can get in serious trouble and be forced to pay for all previous years..

 

[Mr.Sinatra]

Move to andorra.