Delaware LLC + offshore bank account

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Eldorado

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I'm considering Delaware LLC for my software house business and kindly asking for opinions

But first things first:
I'm EU citizen, currently living in EU, but gonna leave the area next year (depends on C-19 restrictions)
My devs are located in ASEAN area, so naturally I'm going to live there too
My clients are only companies in EU zone as well - not considering acquiring clients from other areas

Going to the point:
Delaware LLC seems to be an attractive solution for me to bill my clients and safely transfer company's income to my pocket.
To make the operations more secure I'm considering to open offshore bank account to accept payments from my clients and withdraw company's profit locally.

My relation with local tax authorities is not a part of the question

So, I'm open for your suggestions/tips about weak spots/ideas how to eventually improve the plan
 
Getting an offshore bank account for your Delaware LLC could be a challenge. Why not just use a US bank account?
 
No visit required. And how's about sharing account's info with other jurisdictions? No CRS, no problem for connect the company to account.
 
As a foreign owner of an US LLC you're obliged to file forms 5472 and 1120 every year with the IRS, therefore even a Delaware LLC is not really anonymous. If you live in a country with CFC rules or equivalent you're obliged to declare its existence. With a bank account in tax havens like BVI you'll have a hard time getting money in and out of it, because banks in OECD countries will refuse to perform transfers, and will report you to the tax authorities for further investigation. If you open a US bank account, you may remain hidden for now, but Sleepy Joe may decide to sign the GATCA any time. If you'd be just using a bank card of such account issued on the company name back home, eventually it'll be flagged by the local tax authorities and they'll simply demand Visa or Mastercard to reveal the true identity of the warm body holding the card. An LLC is a pass-through entity therefore you tax it as your personal income, on the IRS forms you're obliged to state your tax id in your country of residency. I'm not sure if the IRS notifies the foreign tax authority, but even if they don't now, they may in the future. Your anonymity is just one click away from being destroyed.

The world is moving away from anonymity, so trying to evade taxes and hide money in some tax haven is a really bad idea at this point. Even if your tax haven of choice won't sign the GATCA and you'll find a way how to get money out of there, governments use secret agencies like the NSA to simply steal the information and then give it to some "investigative journalists" as a "leak".

Also remote opening of a bank account in the US is NOT possible. On the HSBC was willing to do it and they're right now giving up on being a global bank for everyone.

Last edited: Oct 4, 2021
 
gnud said:
gnud said:
As a foreign owner of an US LLC you're obliged to file forms 5472 and 1120 every year with the IRS, therefore even a Delaware LLC is not really anonymous. If you live in a country with CFC rules or equivalent you're obliged to declare its existence. With a bank account in tax havens like BVI you'll have a hard time getting money in and out of it, because banks in OECD countries will refuse to perform transfers, and will report you to the tax authorities for further investigation. If you open a US bank account, you may remain hidden for now, but Sleepy Joe may decide to sign the GATCA any time. If you'd be just using a bank card of such account issued on the company name back home, eventually it'll be flagged by the local tax authorities and they'll simply demand Visa or Mastercard to reveal the true identity of the warm body holding the card. An LLC is a pass-through entity therefore you tax it as your personal income, on the IRS forms you're obliged to state your tax id in your country of residency. I'm not sure if the IRS notifies the foreign tax authority, but even if they don't now, they may in the future. Your anonymity is just one click away from being destroyed.

The world is moving away from anonymity, so trying to evade taxes and hide money in some tax haven is a really bad idea at this point. Even if your tax haven of choice won't sign the GATCA and you'll find a way how to get money out of there, governments use secret agencies like the NSA to simply steal the information and then give it to some "investigative journalists" as a "leak".

Also remote opening of a bank account in the US is NOT possible. On the HSBC was willing to do it and they're right now giving up on being a global bank for everyone.
Click to expand...
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Remote opening of bank account in the US is definitely possible. You just need to have the right connection to the right branch manager.
 
sujoe said:
sujoe said:
Remote opening of bank account in the US is definitely possible. You just need to have the right connection to the right branch manager.
Click to expand...
Click to expand...

Not sure how can you get his connection without being in the US personally before and getting to know the manager.
 
gnud said:
gnud said:
Not sure how can you get his connection without being in the US personally before and getting to know the manager.
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Yep you can. If you can't, there are always neo banks like Mercury and Relayfi whose bank accounts are FDIC-insured
 
If you don't mind living in a microwave under an islamic law with all kinds of shady characters from all over the world choose to live in the UAE with the US LLC.
It's the ultimate 100% legal, simple and affordable solution how to not to pay a single cent in taxes.
 
gnud said:
gnud said:
As a foreign owner of an US LLC you're obliged to file forms 5472 and 1120 every year with the IRS, therefore even a Delaware LLC is not really anonymous.
Click to expand...
Click to expand...
Of course I understand this, going to do it via reputable, local law firm from my motherland.

gnud said:
gnud said:
with a bank account in tax havens like BVI you'll have a hard time getting money in and out of it, because banks in OECD countries will refuse to perform transfers
Click to expand...
Click to expand...
gnud said:
gnud said:
If you'd be just using a bank card of such account issued on the company name back home, eventually it'll be flagged by the local tax authorities and they'll simply demand Visa or Mastercard to reveal the true identity of the warm body holding the card.
Click to expand...
Click to expand...
I'm not a dumb - I'm going to use this account to transfer cash to crypto and pay salaries in crypto to my devs and withdraw for my expenses from crypto ATM.

gnud said:
gnud said:
on the IRS forms you're obliged to state your tax id in your country of residency.
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well I can provide some ID of my current country of residency, but anyway I'm going to leave this place soon and live in ASEAN as an expat, and trying to not get involved into gov's procedures more than extending visas.

gnud said:
gnud said:
If you don't mind living in a microwave under an islamic law with all kinds of shady characters from all over the world choose to live in the UAE with the US LLC.
It's the ultimate 100% legal, simple and affordable solution how to not to pay a single cent in taxes.
Click to expand...
Click to expand...
Already bought a house on some island, so location is non-negotiable now
 
If your location is fixed already and you wouldn't reveal it it's hard to suggest anything. But you cannot simply live on tourist visa and not "ground" the flow of money from the LLC somewhere. Eventually someone will start asking questions and some country will claim you with a possible fine for tax evasion. It's better if you decide it yourself so there's no doubt in the future.
 
Just make sure your LLC is also considered a US tax resident by the tax authorities of your COR. If not, retroactive tax assessment, profits of US LLC allocated to either personal income in COR or entity in COR. Bad news
 
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