netixone said:
This is how I have used WY and DE and UK together.
Firstly:
1) I am a privacy nut. Because of the legal work I do outside of dayjob, I have used the following setup. It doesn't provide complete bulletproof privacy, but it's enough. LLP seems to be better when working with legal entities in the UK (tracing agents etc)
2) It is not the cheapest, but it works for me, and the setup pays for itself
3) The banking works fine
The method is "build it backwards", as this should explain. I'll refer to the following using the ficticious name "Acme". Where I mention "office lease" this is not the same as a virtual office - you actually get a legal valid lease, notarised, which proves the right to use the address
1) Form Acme LLC in DE - I am the named member - apply EIN - full virtual office with office lease provided
2) Form Acme LLC in WY - I am the named member - full virtual office with office lease provided
3) Form Acme LLP in UK in my own name. I am one partner, Acme UK Ltd that I own is the second partner. This is in effect the same as a "single member" LLC. For all intents, the taxation is the same (passthrough)
4) Open account using DE LLC with Mercury.io
5) Open Starling account or Tide account in UK. I personally find Tide easier to deal with. Also have iZettle for CNP, and TW for people who prefer to pay that way.
Once this is done:
1) Acme LLP is replaced by myself with DE LLC - some limited personal protection
2) Internal resolution to make DE LLC member-manager of the WY LLC
3) Update Registered Agent in WY to send post to DE
4) Update Registered Agent in DE to scan / post all mail to the LLP
Trade:
1) The "front facing" company is the Wyoming LLC. Why?
1.1) Holds no assets
1.2) Very difficult to financially attack
1.3) Only state in the USA that allows "lifetime nominees", which means I can predraft nominee agreements to point the LLC somewhere else if anything does go wrong
Banking:
1) I try and use the DE LLC for payments were possible, for privacy
2) If this isn't viable, I invoice through LLP
Taxation:
1) LLP invoices DE LLC for commercial services (eg trademark license) for full value of what is raised, this is remitted to the LLP
2) The UK Ltd which is the partner of the LLP then invoices the UK Ltd for services.
3) Benefits:
3.1) Taxation passthrough LLC > LLP > UK Ltd - draw money using "low wage, high dividend" route
3.2) I don't suffer tax personally being a member of the LLP, although I do have to pay some additional Class NICs as "self employed"
Other benefits:
1) UK facing company if required
2) USA facing company if required
Click to expand...
