Banking for US LLC owned by BVI company?

[JohnDoe1122]

Anyone with that setup? Looking for information on does Mercury have issues with this setup or other EMI's/Banks. A lot of information is there for a single member natural person LLC's but not a lot of information regarding offshore corp owned ones.

 

[Sols]

It's not just about jurisdiction.

Does your LLC sell drones to North Korea? Or is it a web hosting business?

However, by adding a BVI parent, you have made your company more complicated. You need to demonstrate a compelling argument for why an EMI would take you on.

Mercury could onboard it. I've seen them open accounts for US companies owned by offshore parents, but in those cases there has been a good reason for the offshore parent. Privacy or low taxes aren't good reasons.

You may have more success with European EMIs with a high risk appetite like Payset, ConnectPay, Valyuz, Verifo, GuruPay, Wallter, iSX, and so on.

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This is the probably the answer to your question.

 

[JohnDoe1122]

Sols said:
It's not just about jurisdiction.

Does your LLC sell drones to North Korea? Or is it a web hosting business?

However, by adding a BVI parent, you have made your company more complicated. You need to demonstrate a compelling argument for why an EMI would take you on.

Mercury could onboard it. I've seen them open accounts for US companies owned by offshore parents, but in those cases there has been a good reason for the offshore parent. Privacy or low taxes aren't good reasons.

You may have more success with European EMIs with a high risk appetite like Payset, ConnectPay, Valyuz, Verifo, GuruPay, Wallter, iSX, and so on.
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Well the reasons are the typical ones. Easy compliance in US because US LLC is owned by a single entity, also no estate tax because the offshore entity can't die. What is a good reason in your opinion?

 

[Clank]

JohnDoe1122 said:
Well the reasons are the typical ones. Easy compliance in US because US LLC is owned by a single entity, also no estate tax because the offshore entity can't die. What is a good reason in your opinion?
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This structure is very common due to state taxes.

Most of banks are familiar with it.

 

[redeye]

You did it in the wrong order. First you create a the US LLC then apply for a bank account, say with Revolut, Airwallex etc. then you transfer the shares to a BVI company, it makes the process less painful.

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Only the early bird catches the worm.

 

[JohnDoe1122]

redeye said:
You did it in the wrong order. First you create a the US LLC then apply for a bank account, say with Revolut, Airwallex etc. then you transfer the shares to a BVI company, it makes the process less painful.
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I haven't done anything yet. But technically speaking you should report that change to banks/emi's. Thanks for the idea though!

 

[Clank]

JohnDoe1122 said:
I haven't done anything yet. But technically speaking you should report that change to banks/emi's. Thanks for the idea though!
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Technically yes, but in practice you don't need, as long as you report it to the IRS you will be protected from estate tax.