USA LLC versus UK LLP/Scotland LP

[Kakarot]

Assuming you're non-resident of UK and USA -- and non-citizen of either as well...

for operating a trading company trading commodities, which of these options would you choose and why?

What are their relative strengths and weaknesses.

They seem so similar to me, I cannot choose.

AFAIK, both are cheap to form, both function as pass-through entities whereby you don't pay any corporate tax whatsoever, but instead you will be taxed wherever you live -- right? Taxed in terms of personal income wherever you are resident.

So to me, they seem basically the same.

But I imagine there are differences for those who understand it deeper.

 

[CaptK]

Anything to do with America is a no for︁ me. There is a lot more paperwork involved in filling in the USA. Get it︂ wrong and it's a world of pain. UK is not as harsh you just get︃ a little fine and paperwork can be done online by yourself.

Apart from that they︄ both pretty much the same.

Banking for both will be your headache.

 

[Kakarot]

thank you. So what are the banking options for both -- tough to get solid‌ brick and mortar bank accounts anywhere for these kinds of companies?

 

[Kakarot]

the only annoying part with the LLP is there must be 2 people involved right?‌ you need a partner. I know you can use another company you hold as the‍ partner, but then you have to pay maintenance on that other company.

How does the⁠ scotland LP compare? Basically just a clone of the UK LLP?

 

[JohnLocke]

Interesting question, the last I learned about the Scorland LP is‍ that you are unable to find a bank account for such an entity, but then⁠ again, it is almost impossible to find a bank account for any foreign entity without⁤ substance, we are left with EMI's.

 

[legrant]

As far as I've⁣ seen, you can easily register (through an agent) an LLC in New Mexico and Delaware⁢ with barely any information, which makes it a nice option if you're interested in privacy.︀ The only pain in the a*s with US LLCs is the fact you have/may have︁ to fill the 1120 and 5472 Forms and mail/fax them to the right place. The︂ forms may look a bit confusing but there's a bunch of websites that help you︃ with it and I'm pretty sure you can fax it using an online faxing service.︄

On the other hand, UK LTD's director's information is public, to everyone. Only because of︅ that I would never go for a UK LTD no matter what any other advantages︆ they may have.

And when it comes to banking, you probably won't be able to︇ open a bank account online with a US LLC (you may be able to do︈ it, but it's not likely), however if you have the money and will, you can︉ take a plane and open a bank account in person (for the company) in less︊ than an hour. UK LTD's may have it easier to open a bank account, however,︋ due to the lack of privacy, it's a no go for me