Best company formation/juristiction to reduce taxes doing retail dropshipping as a Non-US Citizen for US market?

[emyz101]

I have korean nationality but have been living in Bolivia for many many years now.

I would like to know which jurisdiction is best to incorporate that could help me get an EIN numbe/reduce taxes to form a retail dropshipping company selling mostly to the US market?

 

[JustAnotherNomad]

Why not use a single-member US LLC (disregarded entity)?

 

[emyz101]

I will have to hire VAs (Virtual Assistants) later down the business road.

 

[JustAnotherNomad]

So?

 

[emyz101]

After doing some reading on single member LLC. I think it will increase my taxes to be paid because all business profits will be considered personal profits that has to be included in personal tax return.

Meaning that even if I dont have a SSN, IRS will treat my EIN as the same.

Last edited: Aug 13, 2021

 

[JustAnotherNomad]

Yes, on your personal tax return in Bolivia. Will Bolivia really care about a company that's not registered in Bolivia and doesn't serve Bolivian customers?

 

[emyz101]

Oh wow! So how do I have to go on and prove my residency in Bolivia when forming the LLC? Do I have to register my Bolivian Address/Phone No. as Business Address/Phone No. when forming the LLC?

I'm asking this because I believe that LLC incorporation services sites like zenbusiness won't advise me things for my best benefit.

Last edited: Aug 13, 2021

 

[JustAnotherNomad]

I have no experience with this, but a US CPA should be able to help you.
From the US side, the US LLC will be considered a disregarded entity for tax purposes, unless you elect for the LLC to be taxed as a corporation (which you probably shouldn't do).
That means that the IRS will "see through" the LLC and it will be as if you had sold the goods directly as a person living in Bolivia. There should only be US tax if you have employees in the US that work for you exclusively (dependent agents). But please don't take my word for this, talk to a US CPA and about which forms you need to file.

 

[emyz101]

Either way. Your information have been very helpful. Thank you very much.

 

[Fulton Abraham Sanchez]

You will pay no taxes in the US. LLC with single member is disregarded entity and it is like you are selling personally from Bolivia.

 

[uplana]

I agree with the above, there is no tax to be paid in the US with a setup like described here.

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[JustAnotherNomad]

uplana said:
I agree with the above, there is no tax to be paid in the US with a setup like described here.
Click to expand...

There have been a lot of comments like this from you, which add absolutely nothing to the discussion. What is the purpose???