BVI or Europe? Where makes most sense?

[yellowneck]

Hiya everyone,

I really need some advice. I'm a UK citizen living in South America. My tax residency has great tax rules so no probs there. However, tons of banks and EMIs don't accept registered businesses from here. So, I urgently need to do something as I've been using Wise (Transferwise) but they said I need a business account. So I'm thinking offshore. My priorities are easy or preferably no reporting and low tax, and not stupid costly to start.

I'm currently leaning towards BVI, but I'd love to do Europe really. Any ideas folks? Thanks so much in advance 🙂

 

[uplana]

BVI is very expensive but it is more trustworthy compared to Belize, Seychelles etc. that's‌ why many go this way.

You could setup a Cyprus, Malta or Bulgarian company as‍ well as Romanian Micro Company. You want get out of the reporting stuff, all European⁠ countries report.

 

[Martin Everson]

Whats your business physical goods, consulting?

Cost will be a concern as mentioned.

 

[OffshorePhantom]

My suggestion is to set up a US LLC as a disregarded entity, it is‌ cheap and you have access to most of the EMI like Wise. Most people is‍ South America are using this kind of setup. You will only have to file an⁠ annual form 5472 with an attached 1120 (very simple to fill yourself but you can⁤ ask for help for a cheap price as soon as you do not have a⁣ complex business situation).

If you do not have any activities in USA, for example, offices,⁢ employees, equipment etc. this is treated as a pass-through entity and not taxed in USA.︀

With a BVI company nowadays you cannot open any bank account in most EMI including︁ Wise.

 

[yellowneck]

Hiya,

Thanks for the replies everyone. I provide writing services, mostly to the USA. No‌ physical good. I checked on Wise and it allows BVI, I'd just like to have‍ options!

 

[OffshorePhantom]

Hey @yellowneck if you provide consulting services to the USA it even makes more sense‌ to open a US LLC because for them it will be easier to pay you!‍

Wise in theory has pauedonboarding clients from BVI as of now.
For example, if I⁠ try to add a business account of the BVI I get the message attached in⁤ they video, but if for you it works perfect then 🙂

 

[Martin Everson]

Do you really need a company for that activity?⁠

You could just use Xolo Go to invoice clients (if Xolo accept your country). Keep⁤ it simple.

https://www.xolo.io/zz-en/go

 

[yellowneck]

Hiya, ideally, I'd just like a business account and run my business‍ from here. That would be by far the easiest solution. I looked at Xolo Go⁠ and it is a solution, buuuut it would cost me around $5k a year. Which⁤ is a fair old chunk.
I think my problem is that I need a business⁣ account, but how to get one?! If anyone has any ideas, I'd be super greatful⁢ 🙂

 

[yellowneck]

Thanks for this. Am currently investigating the US LLC thing. Cheers for the tip 🙂

 

[treasureinyou]

Would a UK LLP do the trick?

 

[CyprusLawyer101]

Where are you currently resident ?

 

[Flxy]

Based on new regulations you also need to report︂ all bank accounts holding over $10k.

But all US-sourced income︅ should be taxable? US LLC is only good if you don't have USA customers.

 

[SoNewToAllShit]

So no Wise account with BVI company.

Xolo Go would be theb est alternative?

 

[OffshorePhantom]

The regulation you are referring to is⁠ FBAR. You typically open an LLC account using US services or EMI in dollars like⁤ Mercury or Wise in USD. In that case, money is held in USA for the⁣ LLC and no need to report anything, also because it is almost impossible to open⁢ an LLC account outside of US.
This regulation may apply if you open an LLC︀ account in a foreign bank outside US (I do not know why you would do︁ that when in US you have access to plenty of good banks and EMI).

You can have US-clients, the important thing is that you do not have any dependent agent︂ in US or store facilities, employees etc. You need to have no presence on US︃ soil.

 

[bizman]

Its some of the fastes, cheapest and most protecting entities you‍ can setup. Works well with Mercury bank.

 

[SoNewToAllShit]

agree, but you need to know what‍ you will be using the company for. It does not work for all business activity.⁠ For instant I have not found any payment processor that accept a US LLC with⁤ Mercury bank account and that offer card processing?!

 

[Flxy]

So I have Wise account for USA LLC, but additional accounts⁤ are in GBP and EUR. Would I need to report balances on those accounts then?⁣

 

[OffshorePhantom]

Those accounts I think are held by Wise Inc and not by the LLC⁠ so no need of reporting, but double check it, also if you have less than⁤ the equivalent of $10.000 in it no need to report as well.