[Important] US LLC -> UAE Resident SETUP

[curiosologybusiness]

Hello everyone, I have read many threads on this topic but never found the specific answer so I decided to create this thread because I think it can be helpful to many.

I would like to ask a question regarding this setup. I did a consulting with international tax planner.

Business model: B2C - Educational Ebooks
Customers Location: USA / CA / NZ / UK / AU

Setup:
- UAE resident manager (No US Resident)
- UAE Free Zone company
- US LLC Wyoming Operating Company for Payment Processing (Same Manager As UAE Company)

US LLC not engaged with a trade or business in the US (No Office/Employee/Warehouse)

What I have been advised is to create a share agreement from the LLC to the UAE Company.

My question is: Why can't I simply keep the money in the US bank accounts since it is considered a pass through to the owner (who is UAE resident and not US Citizen)? What am I missing?

P.S: I'm NOT trying to avoid the 9% - I just want to genuinely understand how to do things right! Thanks! 🙂

 

[Martin Everson]

curiosologybusiness said:
I did a consulting with international tax planner.
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Ok.

curiosologybusiness said:
My question is: Why can't I simply keep the money in the US bank accounts since it is considered a pass through to the owner (who is UAE resident and not US Citizen)? What am I missing?
Click to expand...

If your on here asking after speaking to an international tax planner you need to get your money back asap....lol. This isn't how international tax consulting should go....just saying 😕

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[yngmind]

curiosologybusiness said:
Hello everyone, I have read many threads on this topic but never found the specific answer so I decided to create this thread because I think it can be helpful to many.

I would like to ask a question regarding this setup. I did a consulting with international tax planner.

Business model: B2C - Educational Ebooks
Customers Location: USA / CA / NZ / UK / AU

Setup:
- UAE resident manager (No US Resident)
- UAE Free Zone company
- US LLC Wyoming Operating Company for Payment Processing (Same Manager As UAE Company)

US LLC not engaged with a trade or business in the US (No Office/Employee/Warehouse)

What I have been advised is to create a share agreement from the LLC to the UAE Company.

My question is: Why can't I simply keep the money in the US bank accounts since it is considered a pass through to the owner (who is UAE resident and not US Citizen)? What am I missing?

P.S: I'm NOT trying to avoid the 9% - I just want to genuinely understand how to do things right! Thanks! 🙂
Click to expand...

You can, and lots of people do that.

A setup with the UAE company is considered safer, but they will both work.

You still have to pay 9% CT for your US LLC. The setup with the UAE company will help you optimize your net profit through your salary. I'm not sure if you can do the same with the US LLC only, like a director fee.

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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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