Questions regarding Delaware LLC

[zeeoffshore]

Hello,

I'm a non-US resident based in Beirut and I'm looking to incorporate an LLC in Delaware. The nature of the business is consultancy services targeting the Middle East and Africa region i.e. all our clients are outside the US and we won't have any business activity in the US. Could you please provide me with the information below?
1- Can I own the LLC alone without having any partner who is a US resident?
2- What are the total annual taxes and fees to pay?
3- Do we have to pay any income tax if we don't do any business activity in the US and all our income is coming from other countries?
4- Can we open a corporate bank account remotely without travelling to the US?
5- Can we open the bank account in any state or it should be in Delaware?
6- Can we easily send money from our bank account in the US to our bank account in Lebanon? Are there any restrictions?

Please advise.
Thank you.

 

[speedster]

What would your reason be for incorporating in the US? Is there a clear win for doing so?

 

[zeeoffshore]

speedster said:
What would your reason be for incorporating in the US? Is there a clear win for doing so?
Click to expand...

Saving taxes

 

[speedster]

Have you considered Lebanese CFC rules, and possibly taxes related to permanent establishments? Step 1 would be to make sure you can get around those.

 

[zeeoffshore]

speedster said:
Have you considered Lebanese CFC rules, and possibly taxes related to permanent establishments? Step 1 would be to make sure you can get around those.
Click to expand...

I think there are cfc rules in Lebanon

 

[JohnSeed]

And you think you can hide in the USA because of no CRS ? the only way you can hide is if you don't open an account anywhere without to provide your name!!

 

[zeeoffshore]

moneynetwork said:
And you think you can hide in the USA because of no CRS ? the only way you can hide is if you don't open an account anywhere without to provide your name!!
Click to expand...

I'm not hiding anything. If our clients are not based in USA neither in Lebanon, why should we pay corporate income tax in both countries?

 

[tomboy]

Who cares where your clients are based? if it was that easy, everybody would work with international customers and no one would pay tax.
Where YOU are located is important. You're working from Lebanon, you are a Lebanon tax resident, you have to pay tax in Lebanon.

 

[Fajosst]

1) Yes, you can.

2) If you create a single member LLC, you do not have to pay any tax. But you must fill out the forms (I don't remember which one specifically). Fill out the form for information purposes and avoid problems. But there are no taxes to pay with a non-US and non-resident single member LLC.

If you open a multi-member LLC you must pay taxes (Forms 1065, 1040NR, 8804,8805,8813,etc), then open a single member LLC to avoid taxes.

3) If you open a single member LLC, you do not have to pay taxes, just fill out an information form. If you open a multi-member LLC, or a corporation you need to pay taxes on revenues from any country.

4) I have had an LLC-Delaware for 3 years, I could not create a bank account. The only option I found is Mercury, look into this new EMI.

You can open a bank account with Stripe Atlas, but if you create a company with Stripe Atlas, you will have to pay corporation tax and you will lose the tax benefits I mentioned in 2).

So if you want a bank account, travel to the United States. Or try TW, Payoneer and Mercury.

5) I believe in any state. But I'm not sure.

6) It depends on which bank you create the bank account, you should ask them. If you use TW (Transferwise) for example, there will be no problems.

 

[zeeoffshore]

Fajosst said:
1) Yes, you can.

2) If you create a single member LLC, you do not have to pay any tax. But you must fill out the forms (I don't remember which one specifically). Fill out the form for information purposes and avoid problems. But there are no taxes to pay with a non-US and non-resident single member LLC.

If you open a multi-member LLC you must pay taxes (Forms 1065, 1040NR, 8804,8805,8813,etc), then open a single member LLC to avoid taxes.

3) If you open a single member LLC, you do not have to pay taxes, just fill out an information form. If you open a multi-member LLC, or a corporation you need to pay taxes on revenues from any country.

4) I have had an LLC-Delaware for 3 years, I could not create a bank account. The only option I found is Mercury, look into this new EMI.

You can open a bank account with Stripe Atlas, but if you create a company with Stripe Atlas, you will have to pay corporation tax and you will lose the tax benefits I mentioned in 2).

So if you want a bank account, travel to the United States. Or try TW, Payoneer and Mercury.

5) I believe in any state. But I'm not sure.

6) It depends on which bank you create the bank account, you should ask them. If you use TW (Transferwise) for example, there will be no problems.
Click to expand...

Many thanks for the useful info. You don't even pay the franchise tax? What are the yearly fees that you pay? As for the bank account, you mean you couldn't open one outside the US? I shouldn't face problems opening a bank account in the US right?

 

[Gediminas]

Why specifically Delaware? There are many more options for you around the world.

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[Fajosst]

zeeoffshore said:
Many thanks for the useful info. You don't even pay the franchise tax? What are the yearly fees that you pay? As for the bank account, you mean you couldn't open one outside the US? I shouldn't face problems opening a bank account in the US right?
Click to expand...

Sorry, I only mentioned the federal taxes (for the IRS). This you don't need to pay, you just need to send an information form.

But the state fees (franchise tax) and registered agent you need to pay annually. I only pay this and send the form for informational purposes to the IRS.

You may have problems getting a bank account outside the U.S., there may be services that can offer this for you, but it is expensive, it would be better if you travelled to the U.S.

In this case you probably wouldn't have problems, just go to an appropriate bank (Wells Fargo, BoA, etc. for example)

If you cannot travel to the US, use EMI's (TW, Payoneer, Mercury, etc)

 

[zeeoffshore]

Gediminas said:
Why specifically Delaware? There are many more options for you around the world.
Click to expand...

Because you don't pay income tax and the annual fees are low (around 400$) and it has good reputation. What other options do you recommend? What about Seychelles?

 

[zeeoffshore]

Fajosst said:
1) Yes, you can.

2) If you create a single member LLC, you do not have to pay any tax. But you must fill out the forms (I don't remember which one specifically). Fill out the form for information purposes and avoid problems. But there are no taxes to pay with a non-US and non-resident single member LLC.

If you open a multi-member LLC you must pay taxes (Forms 1065, 1040NR, 8804,8805,8813,etc), then open a single member LLC to avoid taxes.

3) If you open a single member LLC, you do not have to pay taxes, just fill out an information form. If you open a multi-member LLC, or a corporation you need to pay taxes on revenues from any country.

4) I have had an LLC-Delaware for 3 years, I could not create a bank account. The only option I found is Mercury, look into this new EMI.

You can open a bank account with Stripe Atlas, but if you create a company with Stripe Atlas, you will have to pay corporation tax and you will lose the tax benefits I mentioned in 2).

So if you want a bank account, travel to the United States. Or try TW, Payoneer and Mercury.

5) I believe in any state. But I'm not sure.

6) It depends on which bank you create the bank account, you should ask them. If you use TW (Transferwise) for example, there will be no problems.
Click to expand...

If we open an account with Payoneer, any idea if a client can pay you from the bank without creating an account with Payoneer?

 

[JohnSeed]

zeeoffshore said:
I'm not hiding anything. If our clients are not based in USA neither in Lebanon, why should we pay corporate income tax in both countries?
Click to expand...

Seychelles will not require any audited accounts nor that you do any accounting, so it is much cheaper to maintain long term if you are on a low budget. Otherwise there is still more trust in a Wyoming or Alaska LLC compared to the Seychelles.

There is no corporate tax to be paid but if your local tax office find out of your company you will get personal taxed from any profits in the company unless you can proof the business is run from that location. This is how it works in Europe at least!

 

[Fajosst]

zeeoffshore said:
If we open an account with Payoneer, any idea if a client can pay you from the bank without creating an account with Payoneer?
Click to expand...

Yes, payoneer can receive bank transfers

Read about the Global Payment Service there are bank accounts to receive US, UK and European transfers, but there are restrictions.

Read about GPS to see if it's useful for you

 

[zeeoffshore]

moneynetwork said:
Seychelles will not require any audited accounts nor that you do any accounting, so it is much cheaper to maintain long term if you are on a low budget. Otherwise there is still more trust in a Wyoming or Alaska LLC compared to the Seychelles.

There is no corporate tax to be paid but if your local tax office find out of your company you will get personal taxed from any profits in the company unless you can proof the business is run from that location. This is how it works in Europe at least!
Click to expand...

Ok noted. By local tax office, you mean the tax office of the country where you reside?

 

[JohnSeed]

How are you going about to setup a payoneer account if you don't use any of their providers that can create the account for you?

zeeoffshore said:
Ok noted. By local tax office, you mean the tax office of the country where you reside?
Click to expand...

exactly

 

[Gediminas]

zeeoffshore said:
Because you don't pay income tax and the annual fees are low (around 400$) and it has good reputation. What other options do you recommend? What about Seychelles?
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I wouldn't recommend the USA just because it will be hard/impossible to open bank account (you won't have local substance there). Cyprus would work for you, but it's more expensive. BVI and Vanuatu as well. I would need more info from you to give you a tailored solution.

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[FRANCO]

Hi Zeeoffshore,
I have the same problem than you. I am resident in Lebanon with a lebanese passport and I am trying to do e-commerce.

My feeling is that it is easy to open a company in US or in another offshore place (Seychell, Mauritus, BVI, etc.) but the problem is to have a bank or EMI account to be able to receive payment.

Did you arrive to the same conclusion than me ?

Regards