OVZA
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Setup for Crypto and Stock trading

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Running an exchange is a completely⁤ different business model -- my posts were all about managing/trading prop money.

To run a⁣ crypto exchange, it will be important to work with people qualified enough to guide you⁢ to make it bullet proof.
Otherwise you will run into deep trouble later on regarding︀ things like AML and KYC and such.

And for that kind of business US would︁ be the last place where you should do that imho.
BVI it would depend which︂ kind of products you offer -- if its token against token you MAY not fall︃ under SIBA regulation.
If however cash leg or stable coin pairs are involved, this will︄ be different.

To make an exchange platform nowadays from the technical standpoint is 'easy' with︅ the right coders.
To make it bullet proof legally, is a very different issue.

Best advice is to speak with proper lawyers who have experience in that sector and dont︆ save on that as otherwise you will run into potential legal trouble. Only my two︇ cents...
 
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Thanks for your message but my question was about bank accounts. The exchange has already been︅ built and is live and running. I have several interested investors that are willing to︆ buy equity in the company but I cant accept their funds as I've been trying︇ to open a bank account for the past 3 months and all banks say no.︈ I incorporated it in Delaware... you would think this was a mistake but if it︉ wasn't for this, I would not have met the investors and I would not have︊ met several employees that now work for the company, not to mention all the free︋ credits/perks I receive for being a US start-up company.

The only advice I need Is︌ how to open a bank account to start accepting investor funds. That's why I asked︍ you about the BVI to Signature method or any other method I can do to︎ ensure opening a bank account is an easy process. BVI or Caymen or any other️ jurisdiction where I won't have trouble opening a bank account, what would your recommendation be?‌
 
Do you know Bankera ? It is a︆ little pricey, but they have a plan specifically for crypto exchanges:
https://bankera.com/pricing/business-account/
I also found︇ a list of banks that may be helpful for your case:
https://techmeetstrader.com/banks-for-crypto-companies/
If you can't︈ open a bank account for your US company you will probably need to go through︉ the subsidiary route.

By the way, this is off-topic, but are you currently looking for︊ developers? I currently work as a dev in a electronic trading platform for a investment︋ bank. I have some crypto knowledge and I am planning to make a transition to︌ this area.
 
Most of the times these setups are seen as too simplistic for reality.

Lets exclude‌ Crypto for simplicity and focus on trading:

If that setup would work:
1. get a‍ US LLC
2. get an trading account with Interactive Brokers
3. get the IB debit⁠ card
4. fund the IB account, trade

Potential profits you would draw from ATMs and⁤ or pay stuff with your debit card.

If that would work, not a single stock⁣ trader in the EU (or outside US) would pay taxes on trading the stock market.⁢
And therefor it does not work.
At least not if the tax authorities from the︀ country you are living in have a look at you.

For Germany for example just︁ opening a foreign company is not enough.
If you run the daily business for the︂ foreign company from Germany, then that is not valid and the business result will be︃ fully taxed in Germany.

You would have to prove that the business decisions are taken︄ in the US in our case.
You have to prove that by flight tickets, protocols︅ and so on.
As a trader every major decision (buying/selling) would have to be made︆ in the US then.
 
Please check my profile 🙂

You only forgot︇ the bank account to be able to fund your IB account (you must fund your︈ account using a bank in the name of the company). But yeah, it is a︉ simple setup. The taxation will depend on the laws of the country you reside. As︊ I said in a past post, my country (Brazil) is trying to change its tax︋ code to directly tax the annual profits of offshore companies owned by residents. But currently︌ you will only pay tax if you pay yourself dividends. So yeah, it depends a︍ lot on where you are situated. Sometimes the best strategy is to pay yourself as︎ an director/employee of that company if your country has a high 0% income tax bracket️ floor. In my case, the new law would apply only for tax havens or 0%‌ tax setups (such as US LLC). As solution would be to use more a more‍ complex setup or a simple setup in a low tax jurisdiction (instead of zero tax).⁠ Estonia seems an interesting place as it is crypto friendly, has a high reputation, easy⁤ access to banks and other services, and you don't pay tax on profits as long⁣ as you reinvest that. But I am still researching alternatives.
 
Hey folks!

I'm in the exact situation as Dom Pedro, I'm also from Brazil, and‌ looking to incorporate offshore to trade cryptocurrencies and open an IBKC account.

I've described my‍ business to different incorporation companies and asked them what jurisdiction they think would be the⁠ best fit for my case. Below, I summarize what I got so far:

BBCIncorp: SVG*.⁤ Because SVG doesn't regulate crypto and I wouldn't need a license.
OffshoreCompanyCorp: SVG. Because SVG⁣ doesn't regulate crypto and I wouldn't need a license.
CFSFormations: Panama, SVG or Malta. According⁢ to them, Panama is the only country on this list which I wouldn't need a︀ license to trade cryptocurrencies.
SFM: Belize. No reason provided.

*SVG = St Vincent and the︁ Granadines

From what I got from those companies, SVG seems to be a good option.︂ Have you guys already considered it?
 
got the same response︂ when I asked,

I deduct SVG is used much less frequently than Seychelles and Belize,︃ therefore brokers like IBKR or binance may aprove it. If I'm right that is a︄ temporal solution, sooner or later legislators will force SVG trading companies out of business, it's︅ a matter of time. A real and completely legal solution is to change tax residency︆ moving to a tax haven. That's game over, you're out of the reach of legislators︇ becoming expat.
 
From what I see‍ this is not true. As per IRS at least:

NOTE: If your only U.S. business⁠ activity is trading in stocks, securities, or commodities (including hedging transactions) through a U.S. resident⁤ broker or other agent, you are NOT engaged in a trade or business in the⁣ United States.

The dividends paid from said company should also be taxed at a personal⁢ level. So you're liable to pay dividend/income taxes in your residency country if they are︀ taxed at all.
 
As @Dom pedro noted, the accounting︆ trail will still show how funded the account and on top of that US authorities︇ are likely to classify you as operating a business inside the US and you'd be︈ taxed as such.
 
What did you do, @Dom pedro?

I'm looking for the same lineup (Dellaware LLC‌ for stocks, BVI for Crypto), but I'm still not sure about that, as far as‍ making a C CORP (paying 21% on all pure profit) or LLC Sole Proprietorship (in⁠ this case, all taxation would come to my personal tax)
 
With a Gibraltar non-dom LLC (resident in Andorra), would I have any troubles to open‌ accounts with Interactive Brokers and Wise ?
 
Hey mAzzy, since‍ you are an Andorrian resident, may I ask you in regards of the benefits of⁠ having Gib non-dom LLC?

Since Andorra is one of my top candidates of escaping the⁤ Eussr (not been there yet). I looks like you can open an IB account with⁣ an Andorrian residency and at least profits via shares (as long as you own less⁢ than 25 % of the company) should be tax free. I assume investing in GBTC︀ & ETHE via Grayscale trusts should be free since they are ETFs? Which would be︁ an interesting option for a part of one`s crypto holdings (ofc not your keys not︂ your crypto).
 
About the Gibraltar side company, I have a very specific need that should not apply‌ to anyone else.

Yes for IB and shares. I have not heard the same for‍ ETFs, sorry.
 
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