LLC in Delaware for EU citizen (end to end)
Hi,
I'm in the EU (I don't have a US visa) and want to take on contracting and possibly do a SaaS startup.
Is there a company/person offering to do everything end-to-end (incorporation, bank account opening, tax filing, accounting/bookkeeping etc)?
I've seen many websites and read countless posts but I always find someone that does not do everything end to end. They usually handle the incorporation. But that's the easy part.
I guess many indiehackers have the same issue, can you recommend someone that offers this?
I'm ok with travelling to the US in order to open the US bank account.
Stripe Atlas is not an option as I'm only interested in LLC and not C corp (to keep things simple and costs low).
It depends on the legislation of your country of residence but in general it's very hard to have a company in the US without having anyone actually working there for you.
That's what the services you read about on the internet usually do (among other things): they make it look like you have an employee/co-founder working in the US.
Like I've said it depends on the country, but it's more complicated than it looks like.
If a service can handle that for me, then it doesn't sound "hard". I don't want to figure everything out on my own, I want to pay someone to take care of this for me.
Yeah what I actually meant is that it's risky, these type of solutions are often borderline legally speaking.
But of course that depends a lot on the legislation in your country of residence.
I'm willing to take that risk (as the alternative is really bad). I'm kind of amazed noone can offer this end-to-end, it would make the indiehacker's life so much easier and many would pay for it.
These services are designed for a specific kind of market. They are really great for exporters. Since they can create a presence in the US to buy things unavailbe at home without a presence there or for those loooking for somewhere to hide all their money offshore (Delaware is a worse tax haven than anything on oced blacklist and Wyoming LLC bearer membership have turned up at drug busts.) However these services rarely consider the law at the users country.
I'm interested as well.
I wonder how many people are interested. This could be a good little startup. Probably run as an umbrella (peo) via Ireland (withhold 5% for usa,pay Irish Corp and universal credit and send on to toi.
What are "peo" and "toi"?
Peo for professional employment organisation I understand that to be the American name for the structure the Irish call an umbrella.
Toi should read you
I was typing on my phone in a hurry
Stripe atlas program can help
The problem with this is US LLC are fraught with difficulties for a lot of European residents. As they are often considered corporations by the home countries and taxed accordingly but the US sees them as pass through and so there is no US credit. Plus Delaware can flag up tax avoidance lists.
I am not an expert but as far s I know, in most UE members, the company must be incorporated in the country where the work is actually done.
I know large corporations try to avoid this but for individuals like us it could be very easy for the tax authorities to know that we are trying to not follow this. How can you transfer the money from Delaware to your home country? They will probably notice.
I've been in the same situation a few years ago, asked my accountant and she said that some people follow that path but it is risky.
And yes, paperwork, taxes etc. are crazy complex in most Europe (except UK, where they are more business friendly). I am based in Spain.
There is a special exemption I europe for companies incorporating in other eu member states for bona fide reasons
Free movement of capital in the EU. So Ireland,Cyprus,malta.shoukd be fine in a way that the USA won't.
You can do it yourself for $149. $50 Gets you a Delaware registered agent, mandatory (annual fee) and $89 for State Filing.
See the Fees Schedule at https://corp.delaware.gov/Aug09feesch.pdf
File https://corp.delaware.gov/incstk09.pdf behind a https://corp.delaware.gov/filingmemo.pdf and file your returns annually online via https://corp.delaware.gov/paytaxes.shtml. More info at https://www.quora.com/How-much-does-it-cost-to-set-up-a-C-corp-in-Delaware-if-you-do-it-yourself-in-terms-of-billable-hours-plus-fixed-fees/answer/Manfred-Neustifter?srid=JHwn
*Do your homework and figure out how to structure your company in the manner least likely to cost you a fortune in taxes annually.
Google "Stripe Atlas"
I think these guys do everything you're looking for https://www.advantage-de.com/services/index.html
There's a blogger/digital nomad that I follow (Johnny FD) who recommends www.myusacorporation.com for that.
According to this description, it may be just what you're looking for:
Let us know what you end up doing, I'm also from the EU and interested in this topic :)
Thanks, AFAIK Wyoming is a bit cheaper than Delaware.
This comment was deleted 7 years ago
Hey w8ben (e) yup and maybe i think it is eirn (or ehatever the irs call the ssn for foreigners)eu companies have to account for sales tax selling in to some US states too. That's where they got the idea to change from origin based to supply based in the first place.
I want to avoid paying taxes as DBA/company in my country because of super complex system and very high taxes.
That's why I'm thinking of doing an LLC in the US. I want to route all business through the LLC.
The alternative is incorporating in Cyprus but it's not cheap.
Going to the US will probably have quite some tax implications, as you have to pay tax in the US and on the income derived from there in your country.
Have you thought of doing consulting as a sole proprietor? SaaS invoicing can be done through e.g. fastpring in the US very easy.
An alternative is an Estonian company with a service like https://www.leapin.eu/ . Because it's in the EU, your country has to accept this taxwise.
Paying tax to the US is totally fine with me.
Do you mean being a sole proprietor in my home country? If yes, yes I have looked into it but the taxes are just too high to make this worth it.
I haven't heard good things about Estonia, apart from the things Estonia government/startups say themselves. Does anyone have personal experience with it? What is the approximate total cost?
For me it sounds you are trying not to pay tax in the country you live. Consider that someone has to pay for schools, roads, health, police, ...
Having a taxable company in the US doesn't exempt you to pay taxes on the income you derive from it. I'd suggest to speak to a local tax accountant.
If you do consulting through a US company, you'd also need to look in to liability insurance etc.
This is not really a bad thing if both he and the company are in the eu. This is due to the payroll tax difference between us and eu. His country will simply claim credit against his payments from the other country. Plus as an eu resident (And presumably citizen), always has the option of going to the country in which the company is established.
I am not an expert , just speculating a theory .
I believe the general double taxation treaty rule is that when you repatriate money from US , you will have to pay tax on the difference in tax rates betwenn US rate and your home count in your home country.
So for example, with new tax cuts and Delaware incorporation you achieve total ( federal + state) US tax rate of 21%.
You make $ xyz and repatriate back to your country for which tax bracket is 35%
So you will pay taxes on 35-21 =14% of $xyz because you already paid 21% to US.
{I think more information is needed on whether you will be actually living in you home country for the financial year and if you will be treated as resident for tax purposes. If you are not living in your home country then it changes the situation. }
Would appreciate if someone with experience in this matter would could provide some insight .
thanks!
LLC massively muck this up. I would not touch with out a ten foot bargepole and army of lawyers.
You could always form an llp in yiur country and register it with IRS as pass through entity. As far as the IRS care it is an LLC.
What about Ireland? EU member state 12.5% Corp tax low cost of incorporation as long as your resident in an eu member state. Treaty with usa. Estonia is also an optiom check out leapin.eu. Check your cfc rules with an accountant though. I suspect so member states of eu are more likely to be ok. That's kind of the point behind free movement of capital.
This comment was deleted 7 years ago
You probably will with an LLC as they are excluded by most eu countries anyway even if there is a treaty. Hybrid mismatch
It does, thanks.
This comment was deleted 7 years ago