LLC in US for Non-Resident Alien

Non-US Citizens, seeking a tax haven with no bureaucracy for their offshore companies, should think to set up LLC in US

Benefits of Setting Up Your Business, as LLC in the USA.

If you incorporate your company in the United States, in the LLC form, then you will benefit from (i) Very Large and Profitable Jurisdiction, (ii) Zero-Tax System, (iii) the Efficient Banking and the Payment Processing System, (iv) Very Low Incorporation and Maintenance Costs.

It is unbelievably easy and very much cost effective to set up an LLC in US. It is possible to have everything up and running in one or two weeks, including your business bank account, merchant account and virtual office that can also be opened, remotely. If you can do the work yourself remotely with your preferred agent in US, it may all cost you less than $2500-$3000. Just to give you an opinion, a similar setup in Macau, BVI, Hong Kong, Isle of Man etc., such similar LLC may cost you a lot and even you can not even figure it out about how much you may have to pay at the end and have to conclude visit to such jurisdictions, in order to own a limited liability company up and running abroad, as an offshore company.

Tax Obligations for the Non-resident Owners of LLCs in US.

The United States is indeed a perfect tax heaven. If a non-resident and non-US citizen sets up an LLC in US, his or her earnings, out of his or her LLC would be completely Tax-Free. 

LLCs in US are all “Tax Transparent” companies. They are also “Pass Through Entities”. It means, am LLC in US is a typically not taxed directly, as an entity; it further means, that the tax obligations of an LLC in US passes through to its owner. It means, that your LLC would have zero tax obligation. Any income of your LLC in US would not be subject to any taxation; it means you will not need to pay any tax, since your LLC does not have to pay corporate tax or income tax; however, as you are the sole owner of your LLC in US, you are personally subject to taxation because of the incomes of your own LLC in US. Since the tax obligation is passthrough, it means you will be personally responsible of the taxes of your LLC in US and your tax residency will determine your tax tax obligations due to your incomes from your LLC in US, it is then up to your discretion, to report such incomes, of your individual tax returns to your tax authority of your legal residency.

If the owner of an LLC is a resident of a country, that doesn’t care about collecting taxes or you have no legal residency, then there will not be any tax obligation to pay for you because of your LLC in US.

To benefit from 100% Tax Free System in US because of having LLC in US, you must be a non-Resident Alien, own 100% of your LLC, have no any economic substance or economic presence in the United States.

What is a Non-Resident Alien?

If you are not a “Permanent Resident” in the United States (like a Green Card Holder, working in US) or a citizen of the United States and you did not live in the US more than six (6) Months, then you are deemed as a Non-resident Alien regarding tax point of view since you have no substantial presence in US. What is the term of the “Economic Substance”? A Non-Resident Alien may be subject to tax in US, if he or she is engaged in business or trade in the territory of the US. For example, if you have at least one “Dependent Agent” doing business or trade in the United States for you, then you will be deemed that you have engaged in business or trade in the US. Such “Dependent Agent” may be a company or an employee, who is mostly working exclusively for you or for your LLC in US. Such Dependent Agent must work significantly for your business in the United States; however, if his or her work, was purely administrative job, then he or she can not be considered as your dependent agent from tax point of view.

If you operate in the United States through a permanent establishment, such as physical office or any other fixed place of business or at physical operation address for your business, then you would be subject to US taxation due to your incomes from such business. However, if your LLC sells products or offers services in the United States and earns an income, that income can never be taxed by the United States of America. If your LLS is a consulting agency in US without any employee or office, then your incomes from such LLC would not be subject to any taxation. If your LLC is doing any kind of marketing via phone or Internet in US and provides services to US clients, it would be the same, neither your LLC nor you would be subject to any tax in US. If a non resident company abroad sets up an US LLC for the purpose of billing clients and receiving payments in US Dollars in a US bank account. In this case, US clients will not have any issue if they take such services or purchases into the consideration as their expenses. The income of such kind of LLC in US, that is owned by a company abroad, is not taxed in the United States because the work is done abroad and the owner is a non-Resident Alien.

US is “Real Tax Haven”

If you have any question please please let me know. You may send me eMail or call me at any time you prefer to discuss the details about setting up your new LLC in US to pay no tax.