What's the Best LLC for my Affiliate Marketing business?

[kurosaki4d]

Hello Everyone,

I'm looking for creating a new company abroad and before doing that I wanted to hear about your experiences first.

While searching, I heard a lot about UK LTD companies, and also about LLC in USA (Delaware).

So knowing that my business is totally online, more in particular in Affiliate Marketing, so I receive commissions from other companies that usually pay me through Paypal. Currently, I'm making only around 1k per month.

Based on the above description, and on your own experiences: What is the most suitable type of company for me based on my business model? And which country should I go for registering my company in terms of good taxes/regulations, etc..?

If there are other suggestions I'm all ears. Thank you very much Guys!

 

[Sols]

Why offshore/foreign company?

You are taxed based on where you live. For something as small as 1,000 per month, it does not make sense to go offshore these days. Can't just form a company in Seychelles and not pay tax anymore. Doing that in 2021 comes with far, far greater risks of being caught than a few years ago.

If you can easily move to a tax haven/low-tax jurisdiction, do that if you want to save on taxes.

Setting up an offshore company properly is going to eat up most of your annual revenue (or more than that, depending on structure).

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This is the probably the answer to your question.

 

[Fulton Abraham Sanchez]

kurosaki4d said:
Hello Everyone,

I'm looking for creating a new company abroad and before doing that I wanted to hear about your experiences first.

While searching, I heard a lot about UK LTD companies, and also about LLC in USA (Delaware).

So knowing that my business is totally online, more in particular in Affiliate Marketing, so I receive commissions from other companies that usually pay me through Paypal. Currently, I'm making only around 1k per month.

Based on the above description, and on your own experiences: What is the most suitable type of company for me based on my business model? And which country should I go for registering my company in terms of good taxes/regulations, etc..?

If there are other suggestions I'm all ears. Thank you very much Guys!
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US SMLLC will not tax income from foreign sources (not US sources). Tax filing will not be required unless there are transactions between the owner and the US SMLLC such as loans, distributions, etc.

 

[legrant]

Fulton Abraham Sanchez said:
US SMLLC will not tax income from foreign sources (not US sources). Tax filing will not be required unless there are transactions between the owner and the US SMLLC such as loans, distributions, etc.
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Aren't US SMLLC's passthrough entities and he'll basically be paying the same taxes on his home country because all the company's profit will be passed to him?

Edit:

What I mean is, tax-wise, it'll be exactly the same thing but he'll be spending money on the LLC on top of all the other expenses

 

[Fulton Abraham Sanchez]

legrant said:
Aren't US SMLLC's passthrough entities and he'll basically be paying the same taxes on his home country because all the company's profit will be passed to him?

Edit:

What I mean is, tax-wise, it'll be exactly the same thing but he'll be spending money on the LLC on top of all the other expenses
Click to expand...

If the income is not US source, there is no tax to pay for a foreign citizen (not US citizen owning a SMLLC. Things change if it is 2MLLC) and there is not income to pass thru because it is not US source income, but you are right. He/she will pay tax on that income in his/her country.

 

[JustAnotherNomad]

It could actually be worse because the LLC could be taxed as a corporation in his home country.
There's really no point in doing anything "offshore" for EUR 1k per month. Just claim all the deductions/business expenses you can in your home country and that's it.

 

[Risehigh]

JustAnotherNomad said:
It could actually be worse because the LLC could be taxed as a corporation in his home country.
There's really no point in doing anything "offshore" for EUR 1k per month. Just claim all the deductions/business expenses you can in your home country and that's it.
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For 1k this.in the future you can surely use a uk, dlw, seychelles setup (depends where you are from) but for now this setup would eat more than your budget

 

[kurosaki4d]

Risehigh said:
For 1k this.in the future you can surely use a uk, dlw, seychelles setup (depends where you are from) but for now this setup would eat more than your budget
Click to expand...

It makes a lot of sence! I didn't realize that it was more expensive than the US LLC

 

[SeeMeInTheMorning]

LLC and Corporation are two most selected types of business entities for non-residents in Delaware. Still, many owners eyeing Delaware tend to wonder which one is better for their new business venture setup.

 

[uplana]

What would make the one better then the other ?

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