Is my simple tax plan viable? (Delaware LLC)

[bimbambem]

I am digital nomad(freelancer), originally a citizen of a European country but I renounced all financial ties so now I should pay taxes wherever I spend the most time - or whichever country claims I have the biggest interest there(didn't happen yet, I travel a lot)

So here is my simple plan:
1: Register Delaware LCC (stripe atlas)
2: Pay myself just enough to live and voluntarily pay taxes on that to country where I spend the most time(us LLC should be tax pass-trough entity for me).
3: Reinvest the rest back in business.
4: After a few years, move to a country with more favorable taxes and cashout.

Sounds pretty simple, am I missing anything? Also, I heard some people use Belize company to own US LCC, what are the advantages of that?

 

[Fajosst]

We're in a very similar situation. I am also a digital nomad and have an LLC Delaware.

But I don't think you should have created your LLC with Stripe Atlas.

As far as I know, Stripe Atlas creates corporations. For tax purposes, it would be more advantageous for you to have created an LLC of a single member (non-US and non-resident).

In this case you wouldn't pay any federal tax for the IRS. State taxes only. And you should just fill out informative forms for the IRS, without paying taxes.

But you created a corporation. I don't remember the exact amount, but in your case you will have to pay taxes in addition to filing annual forms.

 

[Artemis Eleutheria]

bimbambem said:
Sounds pretty simple, am I missing anything?
Click to expand...

I would suggest establishing residence in an effectively terrestrially territorially based jurisdiction (for your case). Reason being that if any taxman takes an interest, and you cannot prove that you are resident elsewhere their default is becoming to go after you.

You are basically treated as an escaped slave ... you are an unowned goods ... or terra nullius if you will.

Additionally banking will be easier.

PS Interesting Fraudian slip there.

 

[user9823671]

Do you still have a bank account / paypal account from your home country?

If you are just freelancing, do you really need a company? Can you just get paid to your personal account?

 

[bimbambem]

user9823671 said:
Do you still have a bank account / paypal account from your home country?

If you are just freelancing, do you really need a company? Can you just get paid to your personal account?
Click to expand...

Sorry, I should have been clearer, I am just freelancing at the moment(but earning 10x as much as I spend) and I need to reinvest some of this anyway. Bank accounts are not the issue(have plenty). And I will be doing a couple of small startups, buying a few small competitors...

 

[Btraveler]

Fajosst said:
We're in a very similar situation. I am also a digital nomad and have an LLC Delaware.

But I don't think you should have created your LLC with Stripe Atlas.

As far as I know, Stripe Atlas creates corporations. For tax purposes, it would be more advantageous for you to have created an LLC of a single member (non-US and non-resident).

In this case you wouldn't pay any federal tax for the IRS. State taxes only. And you should just fill out informative forms for the IRS, without paying taxes.

But you created a corporation. I don't remember the exact amount, but in your case you will have to pay taxes in addition to filing annual forms.
Click to expand...

Hello @Fajosst I have an LLC in Wyoming, being me the only member (non-us) owner. This year, for first time I registered to IRS file. What to you report at the end of the year. If you want, we can keep in contact via Private message. Thank you