CRS on US LLC

[cuozzo]

Hi,

it seems like US does not apply CRS and therefore it doesn't exchange informations with european countries.

At least that's what it looks like from OECD website.

I am interested in opening a US LLC and wondering whether my income will be reported to EU or not, can anyone with experience
confirm this for me?

Also what are some banks or EMI I can use with that company?

 

[Marzio]

If you are relying on the fact that US LLC income will not be reported‌ to your EU country and you plan on managing your LLC from your home country‍ you are risking big.

 

[cuozzo]

I do not live in my⁠ home country however my tax residence is still there, this will change obviously.
But I'd⁤ still like to receive an answer for that question

 

[Sols]

It's true that US is not a signatory to CRS. Instead, however, look into FATCA,‌ which is older than CRS. Because FATCA does nearly the same thing, the US has‍ decided not to sign up for CRS.

CRS and FATCA come down⁣ to the bank/EMI that you bank, with where the company is incorporated.

A US company⁢ with an EU resident sole owner/director/UBO with an account with a European bank will end︀ up reported to the EU resident's home country.

Depends. Are you selling︂ an accounting software or are you selling biochemical weapons?

 

[Martin Everson]

It does the equivalent under FATCA as its‍ a bilateral agreement. It is one of the reasons it never joined CRS as it⁠ would be duplication. Read any FATCA agreement i.e UK one below and see article 2⁤ paragraph 1.

https://home.treasury.gov/system/files/131/FATCA-Agreement-UK-9-12-2012.pdf

You can also read this thread below from beginning︀ to end for more info before contemplating any move.

https://www.offshorecorptalk.com/th...n-us-person-deposits-in-them.22676/post-91669

 

[cuozzo]

Thanks, I did not know about FATCA indeed.

 

[Xshore]

Fatca does not report non interest bearing accounts. Also, income is generally not reported under‌ CRS (apart from interest income), only Ye balances.
However US might report the llc based‍ on the 5472 form that you're required to file.
If You don't live in your⁠ home country then the llc will probably not be managed from there and not considered⁤ tax resident. Worth checking with a local tax advisor.