Digital Nomad / Perpetual Traveller - 0% tax with US LLC

[orangekangaroo]

But you replied to this answer.

If your income comes from US sources and⁣ your LLC is one member you pay taxes for the income earned from US sources⁢ regardless of where you are staying. If your LLC is two members any income received︀ is taxable.

This is what happens when you have two members of an LLC. I︁ think a lot of us know what an LLC can do when you have one︂ member.

UAE resident owner has to stay 183 days to meet tax residency requirements. We︃ are talking about a setup for digital nomad and Cyprus comes up with its 60-day︄ tax residency requirement for EU citizens.

 

[rowena]

No.

Non-US citizen or resident can set up a Wyoming LLC and sell your products⁤ to US people, it will not create any tax liability in the US. Wyoming LLC⁣ is a tax-neutral structure. It does not matter the count of the members. If you⁢ open a store, hire an employee or manufacture your product in the US then it︀ will create US tax liability.

 

[joffreylol]

Agreed with rowena, you don't have to pay US taxes if you sell to US‌ customers. You pay US taxes only if your income is effectively connected with a trade‍ or business in the United States (ETBUS). Selling to US customers doesn't create ETBUS no⁠ matter how many members LLC has. LLC can pay US taxes if it chooses to⁤ be taxed as C-corp, which almost no one chooses to do.

 

[dor]

where did you get intl insurance? I want one too

 

[dor]

social security contributions of about 2500.︃
200 euros per month can buy you a super global medical insurance 🙂

 

[orangekangaroo]

This is from another blog and it explains well why an LLC does not work‌ with Portugal and Cyprus with the Non-dom option. This is for Cyprus and Portugal only.‍

 

[Buttout]

@joffreylol @rowena Just curious, are you filing forms 5472 & 1120 by yourselves or are‌ you using an accountant?
The forms look pretty simple, just want to make sure I'm‍ not missing any nuances.

 

[joffreylol]

@Buttout I haven't filed anything yet but I would use accountant. I wouldn't want to‌ risk draconian fines from IRS and I want to be fully compliant with IRS.

 

[phrix]

Currently doing some research for a friend who wants to establish a LLC. I noticed‌ the IRS form 5742 asks for

1. A foreign taxpayer identification number (FTIN)
2. A‍ country(ies) under whose laws the related party files an income tax return

While my friends⁠ definitely wants to establish a tax residence somewhere in the future, he wants to go⁤ fully nomadic for a year or two. Theoretically he won’t have a FTIN or tax⁣ residence during that time. What is he supposed to fill in the form then?

 

[orangekangaroo]

I get that all, it is the Digi Nomad / PT stuff that does⁣ not work with an UAE company. UAE is 183 days. I would use a Panama⁢ residency setup with territorial tax and only 1 day a year needed for tax residency.︀

 

[px1]

How about Paraguay tax residency..?
I understand you dont really need⁤ to be there, ever

 

[Piano]

Are you sure only 1 day/year for tax residency ? I⁤ think it is only to keep your residence card but not tax residence

 

[Fred]

The before mentioned is not right. To keep the residence visa active and with that the‍ bank accounts active - you have to be in the UAE 1 day in 6⁠ months. Because of the residence visa the local banks consider you as resident and no⁤ CRS reporting happens that's why the peaople get away with it even if they don't⁣ spend time here to get the tax certificate.
Same goes for Panama. Maybe one day⁢ less to be there within one year but for sure you don't get a tax︀ certificate just for staying 1 day there. In theory the banks in Panama consider you︁ a resident as well an no CRS but in pratice it's close to impossible to︂ get a Panama bank account if you don't stay there the whole year - that︃ said keep the bad reputation of Panama in mind. You won't have any fun transfering︄ money around with a bank account in Panama.

 

[Piano]

That would be nice ..

 

[Piano]

What issues would you have with Panama banks in specific ?

 

[Fred]

Go and send from Panama bank account to somebody in Europe and see how‍ the receiver bank asks questions, rejects the transfer or simply closes the bank account. Panama⁠ has very bad reputation and beside of that it's close to impossible to open an⁤ account or to bank with the banks in Panama. High fees - not transactional at⁣ all. Just search the forum for user expereince with Panama banks and you will see.⁢

 

[orangekangaroo]

I get that, and I get that you are promoting Dubai.⁢ I think the Panama set up in this thread was all about being a perpetual︀ traveller with a US LLC. The Panama company is just setup to meet the friendly︁ nations visa requirements, there will not be massive transacting or non at all. The US︂ LLC will have a US bank account, all you need is a reputable bank elsewhere︃ to receive your personal income. Panama banks play absolutely no role in this whatsoever. You︄ keep the residency alive as you would in Dubai, that is all. With Panama 1︅ day every year, if you do so over the new years period, one trip every︆ two years.

 

[Fred]

The point is the non-resident banking. What you mention is good in︂ theory. Try and find a bank outside Panama that is willing to take you with︃ Panama residence.

Keep us updated.

 

[orangekangaroo]

With being a Perpetual traveller, I am sure⁠ people can set up a variety of personal banks accounts. That is the least of⁤ my worries.

 

[Fred]

Keep us updated. I'm very interested about the banks that will onboard you with Panama⁠ residence.