Countries to run an US LLC from?

[gnud]

Which countries are the best as a place of residence for a foreign US LLC owner?

Sure, many countries have POEM and PE rules, but I'm more interested in how is it reality.

 

[startfleetio]

UAE or other tax-free jurisdictions i guess?

 

[sabawolo]

UAE, Monaco, Costa Rica, and certain countries with a good territorial tax regime or with low personal income tax as long as the LLC is a pass through tax transparent entity. Romania for example has an income tax of only 10% for individuals but in general it would be better to form a company there and enjoy just 1% corporate income tax.

 

[TmeWalcO]

@sabawolo Would it be legal to run an US LLC from Romania and pay income tax on just what you pay to yourself? I think, if you were to be audited, they would demmand for you to form an SRL there, right?

 

[sabawolo]

I am not a tax consultant, you'd have to ask one.

 

[legrant]

TmeWalcO said:
@sabawolo Would it be legal to run an US LLC from Romania and pay income tax on just what you pay to yourself? I think, if you were to be audited, they would demmand for you to form an SRL there, right?
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US LLCs are either taxed as C Corp (which pays US corporate tax) or they're passthrough. In your case, it'd be a pass-through entity so you'll have to pay all the companies profits as personal income in Romania. I repeat, ALL the profits, not just the ones you put in your personal bank account, you'll have to pay for everything, even if it stays in the company's bank accounts.

 

[Sols]

legrant said:
US LLCs are either taxed as C Corp (which pays US corporate tax) or they're passthrough. In your case, it'd be a pass-through entity so you'll have to pay all the companies profits as personal income in Romania. I repeat, ALL the profits, not just the ones you put in your personal bank account, you'll have to pay for everything, even if it stays in the company's bank accounts.
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It's not necessarily quite that simple. What you've described is how the entity is treated in the US under US law. However, some jurisdictions don't recognise LLCs as pass-through and instead consider them taxable entities. For example, if you form a US LLC while resident in Canada, the LLC is taxed as corporation in Canada.

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This is the probably the answer to your question.

 

[legrant]

Sols said:
It's not necessarily quite that simple. What you've described is how the entity is treated in the US under US law. However, some jurisdictions don't recognise LLCs as pass-through and instead consider them taxable entities. For example, if you form a US LLC while resident in Canada, the LLC is taxed as corporation in Canada.
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You're right. I was just describing how it's done in most countries but as you say there are some countries that apply different rules.