Company Formation in the US for Non-US Residents?
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Golan
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Yes i just did it. Shoot.
bernard
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Cool, well, I want to start a US site and eventually sell it, it should operate only in the US and not take a profit before the sale.
What I definitely need is a Holding company to keep the profits safe and secure and untaxed/low taxed, until paid to me somewhere in Europe (I plan on expatriating).
It seems like a Delaware LLC is a popular choice, but I'm unsure of it's suitability as a holding company, because it is mentioned some places as "pass through" company, like a partnership.
Which means that if I get this cheap and easy LLC, I need a second holding company, based in the US or elsewhere, because there will not be any local taxation in the Delaware LLC. I suppose this could be in UK or elsewhere, but why complicate things.
illmasterj
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I doubt any of us are accredited to give advice here. Questions I'd ask myself:
- where am I a tax resident?
- does that country have CFC law?
- if I have a holding company somewhere with low/no tax, will that CFC law apply to my holding company?
Golan
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Well, i'm not a lawyer nor a tax adviser, so i can only repeat what i've learnt in the last months.
1. If you are sole foreign owner of US LLC, then it's "pass through", it doesn't owe almost any taxes in US, but instead you pay them wherever you the tax resident are.
When i say "almost", i mean the following:
1. Selling service in US - not pay
2. Selling goods in US - do pay
3. Selling service outside US - not pay
4. Selling goods outside US - not pay
2. You might consider forming C Corp instead of LLC, then you pay all taxes in US but you can deduct tons of expenses and even ones you make in your home country or wherever you travel.
3. Then, anyway, in a great extend everything depends on your tax residentship country tax laws. And on its Tax Treaty with US. For example, my home country, despite having a proper Tax Treaty with US, sees my foreign LLC as a Corporation and wants me to pay full taxes from its operations.
4. Delaware is more for startups, fundraisers, IPOs etc etc. For a small business it's in most cases an overkill. Wyoming or even New Mexico would fit better in most cases.
5. You surely want to get a consultation with US tax adviser + your home country tax adviser + your country of choice to move tax adviser. Because every situation is unique. There can't be universal ABC plans.
That's what i've learnt, hope it helps somehow.
1. If you are sole foreign owner of US LLC, then it's "pass through", it doesn't owe almost any taxes in US, but instead you pay them wherever you the tax resident are.
When i say "almost", i mean the following:
1. Selling service in US - not pay
2. Selling goods in US - do pay
3. Selling service outside US - not pay
4. Selling goods outside US - not pay
2. You might consider forming C Corp instead of LLC, then you pay all taxes in US but you can deduct tons of expenses and even ones you make in your home country or wherever you travel.
3. Then, anyway, in a great extend everything depends on your tax residentship country tax laws. And on its Tax Treaty with US. For example, my home country, despite having a proper Tax Treaty with US, sees my foreign LLC as a Corporation and wants me to pay full taxes from its operations.
4. Delaware is more for startups, fundraisers, IPOs etc etc. For a small business it's in most cases an overkill. Wyoming or even New Mexico would fit better in most cases.
5. You surely want to get a consultation with US tax adviser + your home country tax adviser + your country of choice to move tax adviser. Because every situation is unique. There can't be universal ABC plans.
That's what i've learnt, hope it helps somehow.