Just sharing a tax strategy - LLC Delaware

[Deleted member 657006]

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..

you split it up for me uk even more nice thank you

i love this forum ......

 

[BrandingCat]

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.

Can you please tell me how much you pay taxes for profit and what's the yearly costs of meintaining it?

Thank you

 

[yherrliche]

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.

I believe that's right.

Also, this doesn't remove your income tax, and in some countries (like France) it doesn't remove your social security contributions if you live there.

 

[iki]

Yes I also think its right, I was researching a lot about this few months ago before I decided to register some company in my own country, at least I understand local laws. I would not play with the IRS and definitly would not love to owe anything to them. People who think its that easy to register Delaware LLC for $50, make some random online bank acc and start doing business without paying any tax, are making huge mistake. Anyway there are some good forums: www.offshorecorptalk. com for this type of conversation where you can learn much from other professionals and understand its not easy as it seems.

 

[theRevolt]

Ok first and foremost:
- Never act on tax advice in a forum alone. You are foolish to do so. Why? Ask any OP if they are a CPA/tax lawyer and if their post can be considered legal advice or just their opinion...likely the latter. That means for any issues YOU are on the hook. While you get away with a lot, not paying taxes is certainly not one of them (unless you find a fully legal way of course)

And with that: Just my opinion no legal advice

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

Those are just the LLC fees to renew and the registered agent.

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?

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

Come on guys, isn't it obvious you will stay pay taxes at home? You're still residing in Homecopuntry, providing your service from there and thus still need to pay taxes on any income earned while being a resident. So if you want to simply wire the money to your local bank account, what makes you think that is not taxable lol

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".

This. Many forget other constructs in their own country and that just because you form ABC in XYZ does NOT automatically mean you need to pay no taxes. Why do you think there are CPA/tax lawyers? If this stuff was so easy you would not need them...

I believe that's right.

Also, this doesn't remove your income tax, and in some countries (like France) it doesn't remove your social security contributions if you live there.

Well said. Always check vs. oh I have this LLC im gfolden now, no lawsuits, no taxes woohooo

 

[TheVigilante]

Move to andorra.

What's so special about Andorra?

 

[AlwaySeo]

@theRevolt I'm sorry but in this post I don't find it obvious in the OP's thread that's why I ask, some people who doesnt know about that can think it's so easy to not pay tax, and just fill out the LLC without worrying about tax revenue. That's all mate!

 

[theRevolt]

@theRevolt I'm sorry but in this post I don't find it obvious in the OP's thread that's why I ask, some people who doesnt know about that can think it's so easy to not pay tax, and just fill out the LLC without worrying about tax revenue. That's all mate!

Remember the old saying
If it sounds too good to be true....

If it was so easy to pay no taxes lots of people wouöd be doing it.

 

[Saba1991]

Move to andorra.

do they have something different when it comes to tax and is there any rule for registering the company as a non-Andorra resident? and can I create bank account as a non-resident in one of Andorra's banks?

 

[larrydetuvi]

What's so special about Andorra?

It was Odebrecht's main pick for a reason

 

[hc99]

This is a misleading thread. NB, IANAL.

If you're holding a single member LLC, it can be considered a pass through entity, so corp doesn't pay tax, but the beneficiary does. So in the USA, that could mean you're paying personal tax or whatever relevant entity tax you're liable for. Okay so what, maybe you want to keep all the money in the corp, but then it's not going to be a plain and simple pass through anymore. No plug-and-play "tax free" magic unicorn exists.

Delaware isn't the only state this is possible in. DE may be good for patent protection law and common for tech startups, for example, but there's other states that are good for other purposes, some commonly mentioned are WY, NM, AZ, AK, PR. It might even make sense just to use whatever state you're resident in. Depending on your jurisdiction and tax residency (and even citizenship), you will probably still be liable for taxes somewhere and this might just complicate matters for you with other unnecessary US filings. Thus, if you don't need a US corp for your business, this may not help you and may only complicate things. Most countries tax your worldwide income, some tax only if it was local income, and few don't tax at all. Some greedy countries want to tax you no matter what, until you revoke your citizenship (which some people actually do, in exchange for a citizenship in another favourable country).

Even Wikipedia has an article about this. Else use the Google.
https://en.wikipedia.org/wiki/International_taxation

You should read some books and learn about tax law, not trust vague, broad stroke statements posted on the interwebs. Look for some real published books about asset management, estate planning, and tax management. Some reputable authors to start you off: David Tanzer, Arnold Goldstein, Alan Northcott.

 

[socialglamup]

There are, however, two giant questions to ask yourself:

1. Is it important for your LLC to keep its ownership anonymous? (Do you want others to know that you own your LLC?)
2. Does your line of business have a high risk of future litigation?

If you’re nodding “yes” to these two questions, then a Delaware LLC may possibly be a better move.

 

[AAA999]

I have researched quite extensively this topic and own 2 LLCs in the US.

1. The first question you need to ask yourself is: Do you want to do business in the US? If “no”, don’t bother opening a company there. If “yes”, I definitely recommend to open an LLC.

2. If your answer to 1 was yes, why an LLC? A. Because you won’t pay corporate taxes in the US, and thus avoid double taxation (if you open a corporation you need to pay BOTH corporate tax and dividend tax, which is a hefty 30% for foreigners) B. by choosing an LLC, you won’t be taxed for foreign income (income not derived from the US) and you won’t be paying any taxes even for US income AS LONG AS YOU DONT HAVE ANY US EMPLOYEES. If you have employees, you will be subject to a flat 38% on profits. Therefore, if you plan on opening an LLC in the US, having US employees would impact dramatically what you take home.

An LLC, is a pass-through entity for tax purposes, basically equivalent to a sole proprietorship. This means that, if you are a foreigner, the IRS will report your earnings to your home country. Therefore, the only way to shield yourself from this, is having another entity between you and the LLC.

How to shield your earnings from taxes and being reported to your home country? You can open a corporation in the British Virgin Islands (or in any other tax free country, for example the UAE) that owns the LLC you opened in the US.

To summarize, you will end up owning the corporation in virgin islands that owns the LLC in the US. In this way, you will be legally required to pay taxes in your country, only if you withdraw any funds from your account in the British Virgin Islands. But guess what? This is almost impossible for your home country to track, unless you transfer directly to your home country bank account. But you can always use your debit card from the British Virgin Islands. However, as a good citizen, you should report your taxes even if your home country cannot track this.

This is not professional financial and tax advice. You decide how you want to tackle this.

The best states where to open an LLC, in my opinion are New Mexico and Wyoming. I still prefer New Mexico because ownership is totally anonymous, is cheap, and you don’t pay any franchise.

To open a bank account, you can’t go wrong with Wise (wise.com), they support both companies in the US and the British Virgin Islands. They don’t make problems, like US banks do. And if you open the account in British Virgin Islands, they will even send you a debit card that you can use anywhere anytime.

Hope this helps

 

[TROYSTORY]

I have researched quite extensively this topic and own 2 LLCs in the US.

1. The first question you need to ask yourself is: Do you want to do business in the US? If “no”, don’t bother opening a company there. If “yes”, I definitely recommend to open an LLC.

2. If your answer to 1 was yes, why an LLC? A. Because you won’t pay corporate taxes in the US, and thus avoid double taxation (if you open a corporation you need to pay BOTH corporate tax and dividend tax, which is a hefty 30% for foreigners) B. by choosing an LLC, you won’t be taxed for foreign income (income not derived from the US) and you won’t be paying any taxes even for US income AS LONG AS YOU DONT HAVE ANY US EMPLOYEES. If you have employees, you will be subject to a flat 38% on profits. Therefore, if you plan on opening an LLC in the US, having US employees would impact dramatically what you take home.

An LLC, is a pass-through entity for tax purposes, basically equivalent to a sole proprietorship. This means that, if you are a foreigner, the IRS will report your earnings to your home country. Therefore, the only way to shield yourself from this, is having another entity between you and the LLC.

How to shield your earnings from taxes and being reported to your home country? You can open a corporation in the British Virgin Islands (or in any other tax free country, for example the UAE) that owns the LLC you opened in the US.

To summarize, you will end up owning the corporation in virgin islands that owns the LLC in the US. In this way, you will be legally required to pay taxes in your country, only if you withdraw any funds from your account in the British Virgin Islands. But guess what? This is almost impossible for your home country to track, unless you transfer directly to your home country bank account. But you can always use your debit card from the British Virgin Islands. However, as a good citizen, you should report your taxes even if your home country cannot track this.

This is not professional financial and tax advice. You decide how you want to tackle this.

The best states where to open an LLC, in my opinion are New Mexico and Wyoming. I still prefer New Mexico because ownership is totally anonymous, is cheap, and you don’t pay any franchise.

To open a bank account, you can’t go wrong with Wise (wise.com), they support both companies in the US and the British Virgin Islands. They don’t make problems, like US banks do. And if you open the account in British Virgin Islands, they will even send you a debit card that you can use anywhere anytime.

Hope this helps

hello could you please share some links with private message or here about new mexico and virgin islands? ,i am considering to open an llc but i am afraid the tax issues ,your guide was the best guide i found so far.thanks