US LLC + Italian citizenship
- Thread starter Zio Silvio
- Start date
WIlling to take the risk with #1: Unlikely to be discovered using nominee framework but if you are, it's bad news for you.
not only that... all the beneficial owners forms too... eg. the new FINCEN BOIR, the 5472/1120, bank accounts signatures etc
also you'll have the issue of spending your money. and having nothing in your name if you need proof of income / source of funds in future (e.g. relocation, visas, investments/bank accounts etc)
I've heard plenty of stories where people with llcs just wired 5 digits to their italian bank account and got caught that way rof/%
also you'll have the issue of spending your money. and having nothing in your name if you need proof of income / source of funds in future (e.g. relocation, visas, investments/bank accounts etc)
I've heard plenty of stories where people with llcs just wired 5 digits to their italian bank account and got caught that way rof/%
A single trace of anything will get you in troubles. For example, any payment in for LLC, o receipt of anything from LLC.
Nominee can even declare you somewhere as UBO , even you not knowing.
It's really big risk.
I don't believe you can really erase all traces these days. These times long gone. With all KYC, UBO, AML, FATCA, CRS requirements...
If nominee would get in trouble he will just give you in
Nominee can even declare you somewhere as UBO , even you not knowing.
It's really big risk.
I don't believe you can really erase all traces these days. These times long gone. With all KYC, UBO, AML, FATCA, CRS requirements...
If nominee would get in trouble he will just give you in
He cannot own nor control the money. Only the nominee director can. And then, he can only transport paper money from Lugano to Italy to spend the money. But if that is the only alternative, then he can try it. I am just not sure how easy it is to find a nominee director for such criminal setup.
It's easier just build some company in low tax jurisdiction with substance. Maybe UAE...
Or even in Caribbean maybe is possible to find something cheap having connections
But as you said nobody will want to engage in such set-up
Sorry for bumping an old thread, but since I'm trying to understand how US LLCs work, I'd like to add my two cents. It's actually quite easy to get a fake ID, even one with a working chip. The real challenge is the video verification””if the OP managed to buy such an ID (even for an imaginary person) and passed the verification himself, that's a different story.
However, in my opinion, the risks are extremely high. That would cross the line into document forgery, not just a tax-related offense””especially in Italy, or if the OP has already passed some biometric verifications elsewhere.
However, in my opinion, the risks are extremely high. That would cross the line into document forgery, not just a tax-related offense””especially in Italy, or if the OP has already passed some biometric verifications elsewhere.
Under Italian tax law, foreign entities are generally treated as per se corporations (i.e., tax-opaque), unless they qualify as Controlled Foreign Companies (CFCs). Therefore, if you're using a U.S. LLC that is not engaged in a trade or business in the United States (ETBUS) and not subject to U.S. income tax, the Italian tax authorities will likely consider the LLC’s income as taxable in Italy, especially if the beneficial owner is an Italian tax resident.
Additionally, if you manage the LLC from Italy,meaning its place of effective management is located there,then the LLC is deemed to be Italian tax resident under domestic law. In such a case, you cannot rely on the U.S.–Italy Double Tax Treaty to override the Italian rules on corporate residency, as treaty protection typically applies only in the case of dual residency, which does not apply when residency is determined solely under Italian domestic law.
To avoid these issues, it may be preferable to elect to treat the U.S. LLC as a corporation for U.S. federal tax purposes (by filing Form 8832). This way, the LLC would be subject to the standard 21% U.S. corporate tax rate. However, if your services are rendered from Italy, your income would be classified as foreign-sourced under U.S. tax rules. In that case, your LLC may qualify for the Foreign-Derived Intangible Income (FDII) deduction, effectively reducing the U.S. corporate tax rate on qualifying income to approximately 13.125% (will be a little higher in the future after the OBBB).
This approach may help establish a clearer U.S. tax footprint and enhance your position under Italian anti-abuse rules,though careful structuring and compliance are still required.
Additionally, if you manage the LLC from Italy,meaning its place of effective management is located there,then the LLC is deemed to be Italian tax resident under domestic law. In such a case, you cannot rely on the U.S.–Italy Double Tax Treaty to override the Italian rules on corporate residency, as treaty protection typically applies only in the case of dual residency, which does not apply when residency is determined solely under Italian domestic law.
To avoid these issues, it may be preferable to elect to treat the U.S. LLC as a corporation for U.S. federal tax purposes (by filing Form 8832). This way, the LLC would be subject to the standard 21% U.S. corporate tax rate. However, if your services are rendered from Italy, your income would be classified as foreign-sourced under U.S. tax rules. In that case, your LLC may qualify for the Foreign-Derived Intangible Income (FDII) deduction, effectively reducing the U.S. corporate tax rate on qualifying income to approximately 13.125% (will be a little higher in the future after the OBBB).
This approach may help establish a clearer U.S. tax footprint and enhance your position under Italian anti-abuse rules,though careful structuring and compliance are still required.
I believe I know the system well enough to say that if you’re Italian and have a few connections, you can often secure a very favorable tax arrangement with the local tax authorities so they’ll leave you alone.
If you start trying to cheat them or play games, you risk far more than if you go straight to the point and negotiate a good deal so you can sleep well at night.
If you start trying to cheat them or play games, you risk far more than if you go straight to the point and negotiate a good deal so you can sleep well at night.