Own Delaware LLC vs through offshore corp?

[XCD]

We’re planning on founding an e-commerce based company, my co-founders and I are all based offshore, and we’re planning on registering a Delaware LLC to enable USD payment, etc. I have come across some articles and YouTube views that suggest the US LLC be owned by another offshore corp, instead of us as individuals directly. Sometimes, they vaguely mention this is easier in terms of filing the requisite tax paperwork every year. Is this true? And if so, where should we register the offshore corp? We’re considering HK since it has very favorable tax treatments.

 

[ilke]

We’re planning on founding an e-commerce based company, my co-founders and I are all based offshore, and we’re planning on registering a Delaware LLC to enable USD payment, etc. I have come across some articles and YouTube views that suggest the US LLC be owned by another offshore corp, instead of us as individuals directly. Sometimes, they vaguely mention this is easier in terms of filing the requisite tax paperwork every year. Is this true? And if so, where should we register the offshore corp? We’re considering HK since it has very favorable tax treatments.

When it is an offshore corp (or any other single legal/natural person) as the sole member, the company is just a disregarded entity and nothing more, therefore achieving the simplest possible tax filings you can get in the US.

When you have multiple members of any type, it becomes a partnership – still no US tax liability but an additional complication in tax returns.

HK is a good choice but you need to prove you paid tax somewhere else or your jurisdiction of PE/CFC does not require you to pay taxes; otherwise you will be liable for their 8.25-16.5% as usual. Also keep in mind that accounting is more expensive than some other offshore jurisdictions and you need to pass an audit (albeit mostly a formality) irrespective of income.

Something like BVI is fine but banking with a HK member will probably be easier. You could try Singapore set up in an offshore way, i.e., you have no locally remitted funds and no locally conducted activity, in which case you gain from its reputation without paying local taxes or (most likely) filing an audit.

 

[SoNewToAllShit]

I would go for a HK over BVI because it is very difficult to setup a BVI company and there is not need to go through such complicated process when you can do it with ease with HK!

 

[AlicaFunk]

to setup a BVI company and there

Did you tries with @James Turner ? I don't know if they are less complicated.

 

[mud]

We’re planning on founding an e-commerce based company, my co-founders and I are all based offshore, and we’re planning on registering a Delaware LLC to enable USD payment, etc. I have come across some articles and YouTube views that suggest the US LLC be owned by another offshore corp, instead of us as individuals directly. Sometimes, they vaguely mention this is easier in terms of filing the requisite tax paperwork every year. Is this true? And if so, where should we register the offshore corp? We’re considering HK since it has very favorable tax treatments.

Gibraltar companies are a nice option which is tax free when foreign owned.