US LLC + live in Thailand
- Thread starter Roo
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IMO, the story of the corporate veil is more often a myth and a fairy tale retold in a wrong way. As far as I know, there has not been a single case, where the veil was pierced by spending personal money for business expenses. It is mainly the other way round: When you use business property as if it was yours, there is a risk that all your property is considered to be business property. When you use personal money for business, I see more risk of reverse piercing, which is normally not allowed in the US.
https://www.wolterskluwer.com/en/ex...-owners-of-llcs-and-corporations-need-to-know
However, for a US SMLLC of a foreigner, I would HIGHLY advise not to use any personal card for business purposes because of the requirement to report any such transaction on Form 5472. In my view, this is the much bigger problem of doing so.
How does Thailand treat US LLC?
It's not a corporation, it's a partnership. Why would we have to pay CT?
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I'm not a tax advisor, so please don't consider my posts here as tax advice. Always seek a professional opinion.
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Business Bank Account for your US LLC Remotely
It's not a corporation, it's a partnership. Why would we have to pay CT?
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I'm not a tax advisor, so please don't consider my posts here as tax advice. Always seek a professional opinion.
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Business Bank Account for your US LLC Remotely
i don't think nobody here knows for sure.
Some countries like UK treat it like an opaque entity while many others treat it like a transparent entity.
If it's considered transparent entity you wouldn't have to pay CIT but PIT upon remitting money into Thailand.
The problem here is that "in theory" you shouldn't be working in Thailand without a permit.
Would there be any risk to using a US LLC card to pay for say eating out and grocery shopping or taking out cash at an ATM if it's a disregarded entity? I understand that I will have to report transactions on a form yearly to the IRS. Not sure how much detail that will need to contain.
Yes. You will have to report those transactions on form 5472.
And in this case you actually do run the risk of piercing the veil.
I highly recommend using personal cards for business expenses rather than business cards for personal expenses. The US has enough personal credit card with good cash back. You really also risk in losing or on cash back.
I think any risk. Tax, penalties, law suit, missing cash back, anything.
Any risk of complaints from the IRS, mainly will it cause problems down the line? In Singapore it's perfectly fine to have personal expenses on the company card, or so I've been told and haven't had issues so far (you declare them as personal expense and they are not tax deductible, IRAS has an example of a director paying for his family vacation with company money on their website and it's all good).
Not familiar with what piercing the veil entails, I am mostly concerned about compliance/fines or something like that. Law suit isn't the case as I know the people I work with and they are outside the US so no suing people because they are bored.
Would the US business bank not question or find issue with you doing random daily transactions like buying food, bars, taxis, gogo bars, paying rent on the company card or via bank transfers ? What if they ask you what these transactions are for? You can't say it's personal because the account is for the LLC? Risk of account closure?
One other question - if you get a personal bank account in a foreign country, say HK, that your US LLC pays you into, and you live in Thailand with Thai tax residence, is there any risk that Thailand would investigate or ask about the money in your personal foreign bank account and where that comes from? Assuming they are notified about this money due to CRS. Im thinking Thailand could nail you for working for your LLC while being tax resident and living in TH this way?
One other question - if you get a personal bank account in a foreign country, say HK, that your US LLC pays you into, and you live in Thailand with Thai tax residence, is there any risk that Thailand would investigate or ask about the money in your personal foreign bank account and where that comes from? Assuming they are notified about this money due to CRS. Im thinking Thailand could nail you for working for your LLC while being tax resident and living in TH this way?
they dont report anythin in thailand from theLLC? or do they report some minimium they remit to thailand to spend and live?
But now with DTV visa you can legally come and work from thailand remotely. Does this change anything for LLC and staying in thailand with DTV visa?
You don't report anything from the LLC in Thailand.
If you remit you are supposed to pay, unless you remit savings that you had before becoming a Thai resident.
that
that is what i thought but why some people keep saying is risky and not good strategy to have US LLC + Thailand fiscal residence? Now with DTV you can work legally remote/online.
Yes, I don't see the problem having an LLC and living in Thailand.
Some people will say that generally, if you have an LLC and you live in country X, just the fact that you are running the LLC is the same as working from that country since the LLC is a pass-through entity, and you are then supposed to pay taxes in country X.
In reality, a lot of people, and I really mean a lot! Are living in country X and not paying taxes, even if that is supposed to be illegal.
I don't see the problem in Thailand.
(Sometime, it seems that there are Tax agents writing comments in this forum. All I have to say is live as you wish, live tax-free!)
Depends on the country you live in.
For example, many EU countries don't really like you running an LLC and living there (I am thinking of Portugal/Italy/Germany/France/whatever) as you are a de facto administrator of the company )even with nominees) and therefore the company may be attracted in that jurisdiction as there is an effective establishment of management and the company will be taxed as a Portuguese/French/whatever.
Sure, you can take the risk, I personally wouldn't. Many do it, that is true 😛
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