Can I use business bank account for personal expenses. US LLC for non-resident alien; non-ETBUS; EU national living in the EU

[resident101]

Hi All,

I have an LLC in the US. I will be providing consulting services and I need a way to issue invoices and get paid.

I live in EU and I am an Eu national. I want to use my US LLC to get paid for my work.

For tax purpose, I won't owe any tax in the US since the activity doesn't take place in the US, I am not American, non-ETBUS etc.

So when I get paid on my US business bank account, can I just use that money for personal expenses? The LLC is simply for the purpose to get paid. I won't be getting investors, get debt, etc.

It is ok to be using the business bank account for personal stuff given these circumstances?

Regards!

 

[Sols]

Generally speaking, no. Don't mix company money and personal money. Nothing good can come from‌ it. I have seen so many people make this mistake and end up in a‍ huge mess.

 

[Forester]

I agree with @Sols, just adding that it is simply not wise, regardless of‌ fact that in some jurisdictions it is even prohibited (namely in the U.S.A., it may‍ vary from state to state, I guess).

(BTW, the earnings you have mentioned can be⁠ very well liable to tax in your resident country; but I presume you are aware⁤ of it.)

 

[resident101]

Thank you for your replies.

So it seems I would have to transfer that to‌ a US personal bank account or to send it abroad to an EU account where‍ it will need to be reported as foreign income.

 

[Sols]

The US LLC is very likely⁠ tax resident where you live and would have to pay corporate income tax, unless US⁤ LLCs are considered partnerships where you live, in which case they may be tax transparent.⁣

The funds you pay yourself may be considered dividends or salary, depending on how local⁢ law treats US LLCs. If it's salary, you may need to pay social security contributions︀ as an employer and/or employee. Furthermore, the money becomes taxable at the moment you earn︁ it, regardless of whether you send it abroad to an EU account or not.

Speak to a lawyer or local professional tax adviser before you accidentally commit major tax fraud.︂ You're making assumptions I've seen many people make before and end up regretting.

 

[TheCryptoAnt]

hell yeah just cook the books who cares 😎