Cheapest online offshore company formation destinations to utilize non dom benefits

[daniels27]

There is a⁠ good overview of the popular states here:
https://wyomingllcattorney.com/Form-a-Wyoming-LLC/vs-Nevada-Delaware-New-Mexico

Wyoming is cheapest and often chosen because⁤ Wyoming has no corporate taxes. Nevada is their competitor.
New Mexico is best for a⁣ bit more anonymity and lower carrying cost.
Delaware has extensive case law and is thus⁢ chosen for companies you later want to sell (mainly intransparent ones) as investors prefer having︀ clear case law as it eliminates the need for lenghty court disputes as you can︁ settle things mutually given previous decisions.

For the filings, I think you need upon incorporation︂ in Wyoming:

• BOI
  
• BE-13
  
• EIN
  

and then annually

• 1120, 5472 (that is the form which︃ has the 25k penalty, however upon calling the IRS can grant you a first time︄ abatement every three years)
  
• 1065 (only for multi-member LLC)
  
• FBAR (if you have bank accounts︅ outside the US which at any time during the year hold over 10k USD)
  
• annual renewal in Wyoming (Warning: Your corporate address and email address is on this form, you︆ may want to use something else than your personal email address (but ensure that you︇ can receive emails there as Wyoming only sends communication there, separate email addresses with a︈ ; if you want to enter more than one). Also a name is there, you︉ may want to use an agent to file for you.)
  

The cheap ones are www.wycra.com, www.wyomingagents.com, www.wyregisteredagent.net, www.wyomingllcattorney.com. Cost is less than $100 for incorporation, less︊ than $60 per year with about 5 letters scanning and annual renewal filing in Wyoming︋ is less than $100 per year. You can do the state filings yourself.

No annual︌ audit is needed, no book keeping needed.

I do not know what you mean by︍ name reg fee. Afaik, there are no such fees in Wyoming etc.

[Edit: Thanks @Cloudbanck, I fixed it. Your help is much appreciated here!]

 

[Cloudbanck]

Note that the BOI isnt annual, and FBAR is only if your LLC have accounts‌ with more than 10k USD outside the US. And as mentioned for New Mexico there‍ is no state report. So for a single member LLC in New Mexico with no⁠ accounts outside the US, it's only 1120 and 5472 that need to be filed annually.⁤

 

[Nw1]

Are u a citizen of US? To not have accounts⁣ outside US? Since if not a citizen then obviously you will have a bank account⁢ outside US with an amount more than 10K, in my case it would be not︀ as a bank balance but in stuff like GIC, FD, etc instruments which means bank︁ holds onto money so technically I would have below 10K right?

 

[daniels27]

It only applies to⁣ money of the US LLC. Not to you as a person.

And to avoid mis⁢ understandings, any money that you take out, needs to be reported on 5472. Hence, if︀ you take it out and report it on that form, it is your money, not︁ money of the LLC.

 

[Cloudbanck]

We are assuming here⁣ that the owner of the US LLC is a non resident alien, I.e. non US⁢ citizen and non US resident.

Such an owner can have personal accounts outside the US︀ without any FBAR requirements. Otherwise the whole world would have to report FBAR.

What is︁ relevant here is if the US LLC has accounts outside the US with at least︂ 10k at any point. If so, there would be annual FBAR filing requirements.

 

[Nw1]

You said; Wyoming is cheapest and often chosen because Wyoming has no corporate taxes. saw‌ an article from a wyoming formation company saying; holding company is a C Corporation and‍ you’ll pay corporate income tax to the IRS, but the profits can be held in⁠ the holding company. But in same article they do state no income or corporate taxes⁤ but at end above line is there so confused do they charge tax or not⁣ lol.

If they don't charge tax for local sales from other states and depend on⁢ personal tax given LLC distributes profit/salary taken out kind of makes sense and probably they︀ have law that says sales from Wyoming will be taxed at xy%

 

[Nw1]

Also seems in our IT business line we have Upwork, YouTube, Google earnings expected so‌ will a New Mexico or Wyoming LLC be able to apply as a C corporation‍ retain earnings not distribute it out of country and be tax free even though those⁠ companies are also US based?

Also Daniels27 mentioned New Mexico have more anonymity and lower⁤ carrying cost can Cloudbanck explain more on what a lower carrying cost you get from⁣ New Mexico?

 

[daniels27]

A single member US LLC is tax transparent by default. You can amend this every‌ 5 years using Form 8832. A C Corp is tax intransparent and pays taxes as‍ a company.

There is no law that you need to pay taxes from revenue in⁠ Wyoming. The rule is that a transparent entity only pays tax on the level of⁤ the members.

Have you read the link I posted earlier. A New Mexico company costs⁣ 50 USD to incorporate and you only need to maintain a registered agent without the⁢ need to do any annual renewal.

Yes, you can elect to be taxed on a company level. But then you︄ need to pay taxes, which is not what you are looking for. Hence, you need︅ to keep it tax transparent. If you want to retain earnings, you are better off︆ forming a company elsewhere that is tax-free and use the US LLC only for the︇ convenience of banking access. This then goes back to the Nevis, BVI, etc. discussion, fees︈ there are starting around 500 USD per year and there are accounting requirements. Also, it︉ will most likely cause you more troubles to get banking in the US than without.︊

 

[Shadow Atlas]

The Corporate Transparency Act killed the U.S. LLC for foreign owners who want to obfuscate‌ their beneficial ownership, which from what I understood is what OP is looking for. Unless‍ you have a way of getting around it... but from what I've seen, the only⁠ feasisble exemption if for inactive entities formed before 2020.

 

[ImKing]

why before 2020 do you have any information about why it makes a‌ difference ?

 

[daniels27]

They had to file 3 days ago
https://www.nortonrosefulbright.com...b72cd0/the-corporate-transparency-act-is-here

 

[ImKing]

thank you,‌ you mean 1 year and 3 days ago!

That makes US LLCs registered before 2020 extremely valuable. Yet another business model that slipped through⁠ my fingers. One should have registered hundreds of companies, they could easily be sold for⁤ a fortune today!

 

[Shadow Atlas]

If you can actually set up a bank account for an⁤ inactive LLC, then it makes it invaluable... an inactive company is useless unless you can⁣ open a bank account.

 

[daniels27]

It said "Reporting companies existing prior to January 1, 2024 will have until January 1,‍ 2025 to make an initial report."

 

[bountymounty]

have you used him for this‍ service before or still do ?

 

[usacpa]

Services are sourced where they are performed. You can⁤ have US based clients without having US sourced income as long as the services are⁣ performed outside of the US. So the LLC could still work for you. You can⁢ see this on the IRS website https://www.irs.gov/individuals/international-taxpayers/nonresident-aliens-sourcing-of-income

 

[Nw1]

This would work if an individual lives in a⁤ tax free country else since this is regarding as a tax transparent LLC where all⁣ income made by LLC is as individual income so then not taxable in US but⁢ will be taxable in resident country(even if not take out the funds from company if︀ I am not mistaken). If as a C corporation where owner and company are two︁ different entites if it works then that would be interesting.

Only down side is large︂ penalties for delays in filling certain forms some even go upto 25K USD