Renounced US Citizenship, living in Paraguay, eCommerce setup with a business partner

[ParkSouth]

As the title states, I'm an ex-US citizen who moved to Paraguay and now wants to setup a Shopify store (private label apparel) with a business partner who's also living in Paraguay. The store will sell mostly to US customers.

I don't think my biz partner and I can set up a US LLC and have pass through, can we?

What structure can we use to pay as little taxes as possible? Living in territorial tax system Paraguay helps, but how can we set up our partnership agreement?

Also, I still have personal bank accounts and a family address in the US. I also still have a Social Security number that I can use if need be. My business partner is Dutch and has European bank accounts.

This is our first eCommerce venture, so we are also trying to figure out the best payment processing options, which I assume will depend on the setup we decide on.

We have no need to bring any income from the online store into Paraguay unless we can do it as dividends which pay 0% tax. We can leave it abroad no problem if need be.

Any suggestions would be greatly appreciated.

 

[myhand]

You could store it all in some sort of anonymous UK LTD - depending on the amount talking at.

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[ParkSouth]

myhand said:
You could store it all in some sort of anonymous UK LTD - depending on the amount talking at.
Click to expand...

Thanks for the suggestion. Do you mean form a UK LTD for the partnership, then that UK LTD owns the US LLC?

ParkSouth said:
As the title states, I'm an ex-US citizen who moved to Paraguay and now wants to setup a Shopify store (private label apparel) with a business partner who's also living in Paraguay. The store will sell mostly to US customers.

I don't think my biz partner and I can set up a US LLC and have pass through, can we?

What structure can we use to pay as little taxes as possible? Living in territorial tax system Paraguay helps, but how can we set up our partnership agreement?

Also, I still have personal bank accounts and a family address in the US. I also still have a Social Security number that I can use if need be. My business partner is Dutch and has European bank accounts.

This is our first eCommerce venture, so we are also trying to figure out the best payment processing options, which I assume will depend on the setup we decide on.

We have no need to bring any income from the online store into Paraguay unless we can do it as dividends which pay 0% tax. We can leave it abroad no problem if need be.

Any suggestions would be greatly appreciated.
Click to expand...

Just to clarify, the Shopify store would use Print-On-Demand services located in the US.

Also, can my business partner and I each of us form a US SMLLC's, run the business through one of them, and distribute the equal profits afterwards from the SMLLC that runs the Store, to the other SMLLC, and not pay US taxes?

Last edited: Oct 10, 2023