Incorporating an LLC in Delaware being non resident (newbie question)

[catslover]

I am looking at a way to incorporate an education LLC in Delaware to sell courses and certifications overseas.

I have read a lot on the internet and in the forum, apparently the best option is Harvard Business Services Inc, but I am confused about the requirements that I need to create the LLC and also about the responsibilities.

Apparently a bank is needed in the USA, and this is something that most people complain about, because it is a difficult requirement for non-residents to achieve. I already have an active Payoneer account.

On the other hand, a physical correspondence address in the USA is also convenient, is this important?

Finally, I am not a resident of the United States, but for more than 10 years I have been selling photos in microstock agencies, and due to this I must fill out the W-8BEN form every year, so I am a tax payer in the US. Can this negatively affect my status when opening an LLC as non-resident?

Thanks in advance for your replies.

 

[Sols]

Why Delaware? Why US?

If all⁣ you need is company formation, registered agents for forming US companies are a lot less⁢ important than registered agents for forming companies in more classical offshore jurisdiction. Accounting can be︀ outsourced to someone else or do it yourself. There are some forms that must be︁ submitted annually to the IRS, which can be daunting if you're unfamiliar with basic accounting︂ in which case you can probably find a CPA to do it for you.

In your case, you might want to consider Stripe Atlas, since it sounds like you want︃ the ability to take payments from customers online.

You don't actually need a bank account in the USA. But a lot︆ of people want it because they perceive it as prestigious or secure, or because they︇ have domestic banking needs.

Wise and Mercury are popular alternatives people often use. There are︈ a lot of other neo-banks as well that take LLCs owned by non-residents but not︉ all of them support international wire transfers, which can be a problem.

Traditional banks are︊ more difficult but not impossible. If you visit them in person in New York, Miami,︋ or California, you might be able to get an account opened.

Depends but often not necessary.

Probably not, especially not⁠ if the two business activities are unrelated (which it sounds like). Tax problems occur if⁤ you have a significant amount of US based clients or suppliers.

But it's always best⁣ to speak with an actual tax adviser to clarify specific tax law questions.

 

[catslover]

Thank you for your reply Sols‌

Tax adviser is part of the 'Harvard Business Services Inc' service?

The reason why I‍ want to create my company in Delaware/US is for credibility and marketing.

I am still⁠ exploring the business, but I already have a client in Asia interested in certifications from⁤ an American institute.

To which another question arises: what happens with the money that I⁣ earn overseas and never touches a bank in the USA?

 

[Sols]

No, a tax adviser is an independent person or company who can offer you‍ professional advice.

Someone like Harvard Business Services Inc. are just a registered agent which forms⁠ the company for you. They aren't necessarily qualified to give tax advice.
The Delaware LLC is not a taxable entity under US law (unless you specifically opt︀ for it to be a taxable entity, which is not normally the case). The income︁ falls directly to you personally and if you don't live in the US or sell︂ to US clients, there is practically zero risk of owing any tax in the US.︃ Location of bank account is irrelevant.

But keep in mind that the LLC is probably︄ tax resident wherever you live and has to comply with the local tax laws where︅ you live. This usually means you have to pay local corporate tax or at least︆ pay income tax on the company's profits as they are attributable to you personally. Check︇ with a local tax adviser for details.

 

[catslover]

Thanks again for your answer. This clarifies a lot‍ for me.

Where can I get a tax advisor? how much they usually charge? Are⁠ they hired once a year for the tax return?

 

[JohnLocke]

If you want to make it right you will find a local tax advisor since‌ taxes to be paid will be due in your own country where you live.

 

[catslover]

I don't originally sell in⁤ the USA, but it depends on how the project scales.

The fastest way to start⁣ for me is selling in Asia where I have my network, then I can offer⁢ online courses to Europe and South America, where I also have some network to.

In the future I can sell online courses to the USA, I don't know if this︀ is considered selling within the USA... anyway, if this gives me problems, then I can︁ see how to restrict sales to this country.

 

[Error404]

Hi Again,

If you are not going to sell in US the US will be‌ a TAX Heaven, an LLC company will be great to sell your online course with‍ good option of opening bank account without ask a SSN.

Others advantages:

1. High level⁠ of privacy;
2. You don't need to get an accountant
3. If you work internationally⁤ LLC has a excellent reputation
4. As you are opening a LLC as a foreign⁣ you don't be required to pay taxes unless you start to do business in US⁢
5. You will pay by 1st June of 2023 if you open in 2022 only︀ Franchise TAX and Agent fee (not expensive more or less 600$)

If you need help︁ to setup the LLC I'll be glad to help you, pls pay attention with some︂ package online cause they will not give you all the necessary documents to open a︃ bank account.

 

[DunningKruger]

@catslover ;
- I would suggest Wyoming instead of Delaware
- If you will have‌ US based customers do not use US companies 😉 Just create an Estonian or other EU‍ company (UK can be good as well)
- If you will have EU based customers⁠ at that time use US company 😉
- If you have both, establish 2 companies and⁤ issue invoices EU customer will get US company invoice, US customer will get EU company⁣ invoice 🙂

 

[ivan1911]

You can have customers in USA but still not be ETBUS.. you can search for‌ more clarification but if you are not in USA , have a pass through entety‍ and just have USA customers you don't need to pay any tax.

 

[JohnLocke]

You still will be liable for personal income‍ tax on what is earned in the US LLC if I'm not mistaken!

 

[ivan1911]

Yes but not‍ in USA , in your home country...
Just wanted to say that many people run⁠ aways from USA llc as they have USA customers and are afraid of being ETBUS.⁤ So just by having USA customers doesn't make you liable for USA tax for pass⁣ through LLC.. but of course you should pay personal income tax on all profits in⁢ your home country.

 

[catslover]

Guys,thank you very much for your answers

Now I have a clearer picture.

What do‌ you think are the next steps? Should I go direct to Harvard Business Services Inc?‍