Question about US LLC - taxes, payment processing, Paraguay

[covid]

Hi, I wanted to hear some thoughts on this setup:

US LLC (Delaware)
- Owned by a non-US citizen who is a resident of a country with no CFC rules, like Paraguay for example.
- Not engaged in trade or business in the US
- Many US customers

How would the taxes for a setup like this work? 0 sales tax? 0 corporate income tax? Paraguay personal income tax?

Can you get a merchant account for this company with no US owner and no US business activities?

Any better setups for no or low tax with access to payment processing?

 

[Tranceup]

I am also interested in knowing

 

[Error404]

A US LLC (Delaware) owned by a non-US citizen who is a resident of a country with no CFC rules, like Paraguay for example, and not engaged in trade or business in the US, would generally not be subject to US corporate income tax.

As for sales tax, it depends on the state where the customer is located, some states have a Sales tax and some states don't.

As a Paraguay citizen, one option to consider for a low-tax structure would be to set up an offshore company in a country with favorable tax laws and regulations, such as Panama, Belize, or Seychelles, where the corporate income tax rate is zero

 

[Tranceup]

Enomad said:
A US LLC (Delaware) owned by a non-US citizen who is a resident of a country with no CFC rules, like Paraguay for example, and not engaged in trade or business in the US, would generally not be subject to US corporate income tax.

As for sales tax, it depends on the state where the customer is located, some states have a Sales tax and some states don't.

As a Paraguay citizen, one option to consider for a low-tax structure would be to set up an offshore company in a country with favorable tax laws and regulations, such as Panama, Belize, or Seychelles, where the corporate income tax rate is zero
Click to expand...

From Panama, Belize or Seychelles, is there a way to charge with a credit card? Stripe, for example, doesn't work.

 

[Error404]

Tranceup said:
From Panama, Belize or Seychelles, is there a way to charge with a credit card? Stripe, for example, doesn't work.
Click to expand...

Hi, have you ever tried First Data or WorldPay

 

[Tranceup]

Enomad said:
Hi, have you ever tried First Data or WorldPay
Click to expand...

No, you do?

 

[covid]

Enomad said:
A US LLC (Delaware) owned by a non-US citizen who is a resident of a country with no CFC rules, like Paraguay for example, and not engaged in trade or business in the US, would generally not be subject to US corporate income tax.

As for sales tax, it depends on the state where the customer is located, some states have a Sales tax and some states don't.

As a Paraguay citizen, one option to consider for a low-tax structure would be to set up an offshore company in a country with favorable tax laws and regulations, such as Panama, Belize, or Seychelles, where the corporate income tax rate is zero
Click to expand...

Would the pass-through mechanism of the US LLC cause any issues?

 

[Error404]

Tranceup said:
No, you do?
Click to expand...

They are known for their reliability and security in processing payments.

However, it is important to keep in mind that no single payment processor is perfect for every business, and different merchants may have different experiences with First Data.

covid said:
Would the pass-through mechanism of the US LLC cause any issues?
Click to expand...

The pass-through mechanism of the US LLC, which means that the profits and losses of the LLC are passed through to the owners and reported on their individual tax returns, would not cause any issues for a non-US citizen owner who is a resident of a country with no CFC rules, as long as the LLC is not engaged in trade or business in the US.

 

[BrettSilverman]

Enomad said:
Hi, have you ever tried First Data or WorldPay
Click to expand...

both have strict onboarding, at least for new small businesses

 

[EliasIT]

Depends on what business you are into. RBS World Pay is easy to work with. Have a few times setup payment processing with them.

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