Moving Funds from Wise Business (US LLC) to EU Bank Account - Is This Fine?

[ineedmoremoney]

Hi everyone,


I have a Wise Business account set up for my US LLC. I'm a non-EU resident in terms of where I live, but I also hold citizenship in an EU country. Here’s a quick breakdown of my setup:

• I own a US LLC
  
• I have a Wise Business account in the name of the LLC.
  
• I receive income primarily in my EUR Wise balance
  
• I have citizenship and a personal bank account in an EU country.
  
• My trading address is in my non-EU country, and all business info is verified with Wise.
  

Since Wise doesn’t offer a card for US entities, I can’t spend directly from the account. Transferring money to my non-EU bank account involves higher fees, so I’m considering moving funds from Wise to my EU personal bank account instead.

Has anyone done this? Is this approach okay with Wise’s policies?


Thanks!

 

[psvunited]

Open another Business account with your LLC who provides a payment card, like Revolut Business.‌

 

[ilke]

Yes, definitely fine, why wouldn't it be? You can remit distributions to yourself at any‌ time or make purchases on behalf of the entity (and then get paid back).

 

[10101]

Shouldn't we keep private and business spending separate? I'm sure‍ this card is meant for business spending.

 

[ineedmoremoney]

Because the bank account is from another country than my trading⁠ address. Not sure if they will be like "why is your trading address a non⁤ EU country, but you are sending money to a EU bank account?" But then again,⁣ Wise even allows multiple trading addresses.. so not sure.

 

[brianK]

You can open as many accounts as you like it's not a problem at all,‌ suggested Revolut is good so Airwallex and others.

 

[ineedmoremoney]

I know‍ that I can open them. I was wondering if those would look "suspicious" to Wise⁠ because the account would have a different country than my trading address on Wise.

 

[EliasIT]

I have not had any problems doing this and do it︄ frequently over the last years. In the details field you want to put in salary︅ or expenses or something.

 

[brianK]

No, why would that be a problem?
It’s not⁠ unusual for an international company to have multiple addresses, sometimes to appear larger than it⁤ actually is. It really depends on what kind of addresses we’re talking about.

If they’re⁣ all just P.O. boxes or known virtual office addresses, then you might want to forget⁢ itk or at least be cautious. It might get through, but it definitely looks a︀ bit suspicious.

 

[cionide]

I've done exactly this with no issues until Wise stopped liking︄ that Sheridan, Wyoming address everyone uses.

 

[ddddmmm]

I did this for years with a pretty similar setup, moving money from my US‌ LLC to my personal bank account in Europe. However, that would count as a distribution‍ in my case... so I had to pay taxes for those amounts.

If I may,⁠ I'd suggest you open a Revolut account for your LLC provided you live in Europe⁤ (not all countries supported, but most, though).

 

[ineedmoremoney]

Just normal apartments where I actually live. I travel between those two every year,⁢ so that's it.

But was your trading address from the same country as your bank account in Europe?︅ I'll just stick with a normal bank for now, one neobank like wise is enough.︆ I don't gain anything from opening Revolut.

 

[cionide]

Revolut has savings‍ accounts with decent %

 

[ineedmoremoney]

Thanks, wasn't aware‌ of it. Sorry, you replied to a post I've deleted. Can you answer the question‍ in my previous post? Thanks!

Issue is that I need to be a tax resident⁠ in the EU country (revolut says so), which I am not. I could get an⁤ address there and get verified, but yeah not sure if it's worth the risk.

 

[Protect Your Wealth]

You can have expat bank accounts as well, I don't get the problem of sending‌ the money from your LLC to your personal bank account, especially if you are paying‍ yourself a well deserved dividend.

 

[hat24]

Hi, I do not understand, If you transfer money from your Wise LLC to EU‌ personal bank account, your local tax authority will absolutely see that and you will have‍ to pay dividends on that money, I am right?

I have the same Wyoming LLC⁠ Wise/Relay but transfering money in my european bank account will tigger the local authority and⁤ they will tell me to pay taxes for that money, because I am resident in⁣ Europe.

I am wrong?

 

[cionide]

You aren't wrong. We aren't all⁢ avoiding taxes here.

 

[daniels27]

No, a money transfer can be anything. It can be money borrowed to the company paid⁠ back, money being lent to the owner, salary payment, payment for services rendered, payment for⁤ products / fx bought, payment for reimbursement of expenses paid out of pocket, etc.

There is no such thing as automatic tax or something. You can move money freely between⁣ you and your company as much as you like. You just need to know what⁢ you are doing it for and then make the necessary declarations.

 

[hat24]

No trying to avoid at all, but at least need do something to pay less, in‌ Europe with VAT and other taxes paying around 40% of profit to government...

I see, I am stuck with these, have 1 RAK offshore company, 1 Wyoming USA︂ company and 1 Europe company, I have read tons of articles, asked a lot of︃ people but everyone have their own opinion.

 

[daniels27]

It is very⁠ simple, you can make as many transfers as you want. But in the end, you⁤ need to adhere to your local laws. If you bring in money as X, you⁣ need to pay the taxes required for X.

In this thread, they are mainly talking⁢ about taking US LLC money to a personal account to reiumburse the person for the︀ business expenses he put on his personal card. As long as the expenses were for︁ business purposes, this does not lead to any taxes due. In that sense, X would︂ be "paying back a loan from a individual to a company" or eventually "allowances" in︃ case the purchases are of the nature like business dinners etc.

How about you open︄ a new thread with your specific question and we will give you our advice on︅ it? I am looking forward to.