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After few good years, EMI (do not want to publicly display the name of the bank) suddenly ask for a document that does not exist

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Amo

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Jul 10, 2021
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#1
After few good years, EMI (do not want to publicly display the name of the bank) suddenly ask for a document that does not exist. I have an offshore company registered in the USA and I am an EU citizen, not the US. Few years work all perfectly. And suddenly they are forcing us o find a new bank as they demand from us state official document with a list of shareholders but I got info from the registered office that shareholders are not listed on any document filed with the state or federal government. And now more they ask us also for EIN number bust as an offshore company which can not work inside the US or with US companies... We are a totally legal company doing business with companies mostly from the EU, Egypt, .... Invoices are in the smaller amount and it is impossible to understand them as money laundering or similar. That's why I do not understand such a treatment. Now I am looking for a similar EMI which is supporting a US company with an IBAN SEPA account and Visa or Master Card.

I just found out that it may be cheaper to open a new US Offshore company and to have new documents than to obtain additional certificates for my older company it's ridiculous but that is a fact.
 
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#7
I'm also confused. I assumed he was talking about Nonresident Alien Single-Member LLCs and claiming you couldn't get an EIN for that type of LLC. I'm 99.99% he is wrong and should get an EIN because Mercury wouldn't accept him without EIN and probably Wise wouldn't either.
 
#8
joffreylol said:
I'm also confused. I assumed he was talking about Nonresident Alien Single-Member LLCs and claiming you couldn't get an EIN for that type of LLC. I'm 99.99% he is wrong and should get an EIN because Mercury wouldn't accept him without EIN and probably Wise wouldn't either.
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No bank or EMI will accept a US company without EIN. I have no idea what a “US Offshore company” is, the only corporate structures in USA are Sole Proprietorship, Partnership, LLC, C-Corp and S-Corp (this last one only for resident with SSN).
 
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#9
EuroKiss said:
What the hell is a “US offshore company”???

Just to comply with the message length rule.
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U.S. Offshore company is in this case offshore company registered in Delaware U.S. By definition, such a company can not, must not, work in the US or having business with other U.S. companies. So zero income tax providing the income comes can come only from sources outside the U.S. so accounting and audit submission is not required SO THERE IS NO NEED FOR EIN number!
 
#10
Amo said:
U.S. Offshore company is in this case offshore company registered in Delaware U.S. By definition, such a company can not, must not, work in the US or having business with other U.S. companies. So zero income tax providing the income comes can come only from sources outside the U.S. so accounting and audit submission is not required SO THERE IS NO NEED FOR EIN number!
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TBH this sounds completely new to me, I’ll check it out, thanks.
 
#11
Amo said:
U.S. Offshore company is in this case offshore company registered in Delaware U.S. By definition, such a company can not, must not, work in the US or having business with other U.S. companies. So zero income tax providing the income comes can come only from sources outside the U.S. so accounting and audit submission is not required SO THERE IS NO NEED FOR EIN number!
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This is inaccurate and it sounds like you have been misinformed.

S and C Corps are taxable companies in the US regardless of whether you have an EIN or not, and you need to file mostly the same paperwork.

LLCs are normally not taxable because they are pass-trough entities, which for non-residents nearly always means zero US tax scope. You still need to file some paperwork with the IRS, though.

If you thought that not having an EIN created some regulatory vacuum and you haven't filed paperwork, you have been violating US law.

Amo said:
No! EIN number is for the comapnies that work in US and/or have busness with other US comapnis. But offshore company can not work inside the US or with US companies... So therefor you do not ned EIN number, but yes you can get one but than you are not offshore company any more.
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I think you have this all wrong. Sure, there is no legal requirement to have an EIN. But if you ever want to have a EMI/bank account for your US company again, you will need to get an EIN. It's a practical requirement.

The IRS doesn't view you any differently whether you have an EIN or not. A company without EIN is still subject to the exact same laws as companies with an EIN. The EIN just makes thing easier.
 
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#12
It looks like you do not know anything about U.S. offshore companies. As a non-U.S: citizen or resident and owner of such offshore company there is zero income tax providing the income can come only from sources outside the U.S. Then you have each year State od Delaware Annual Franchise Tax report which including Franchise Tax 175 USD and Anual Filing Fee 50 USD. And that's it. And as I said if you want you can get an EIN number and if you do then you can work inside the U.S., having business also with U.S. companies... and yes you will lose Offshore status and you will have to pay all the taxes as all other companies, filing reports to IRS, etc.
 
#13
I'm very sorry to say but it sounds like you have been at best simply misinformed or at worst been lied to. There is no such thing as an offshore US company. There is no "offshore status". All US companies are subject to the same US tax laws. Whoever you paid to give you this advice has not clearly communicated to you the full situation. If you have reputable sources saying differently, please share.

It sounds like someone told you that, as long as you only do business outside of the US, there is no US tax. This is true in most cases if you incorporate an LLC (this does not apply to C Corps or S Corps) and that LLC is treated as pass-through entity (which most are). In that case, the entity itself is not taxed and it is up to the members and managers of the LLC to pay personal income tax, which for non-residents is normally zero in the US. — Whether you have an EIN or not does not change that.

You are free to continue operating under your current misinterpretation of US law, but don't be surprised when reality catches up with you as no banks and EMIs are willing to work with you.
 
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#15
EuroKiss said:
TBH this sounds completely new to me, I’ll check it out, thanks.
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Dude, I think you are just talking about a non-resident owned LLC with no substance in the US, that’s it, and yes, EIN is required by any bank or EMI in the US, they don’t care if or how you pay taxes to the IRS but they want to see the EIN since it’s the only federal document about your company.
 
#16
Amo said:
It looks like you do not know anything about U.S. offshore companies. As a non-U.S: citizen or resident and owner of such offshore company there is zero income tax providing the income can come only from sources outside the U.S. Then you have each year State od Delaware Annual Franchise Tax report which including Franchise Tax 175 USD and Anual Filing Fee 50 USD. And that's it. And as I said if you want you can get an EIN number and if you do then you can work inside the U.S., having business also with U.S. companies... and yes you will lose Offshore status and you will have to pay all the taxes as all other companies, filing reports to IRS, etc.
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You're completely wrong and it's possible that someone informed you in a wrong way. I have a couple of US businesses that none of them do business with US business and I have never put a feet in the country and all of them have their own EIN and bank accounts, you need (and not only need) you MUST get one and of course fill the 5472... BUT since you mentioned you have some years with that I'm afraid you owned a few thousand dollars to the US because you need to fill the form 5472 every year and not doing so means a penalty of $25k

BTW, if you get a bank account outside the US, you MUST report it to the IRS every year too
 
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#17
Amo said:
It looks like you do not know anything about U.S. offshore companies. As a non-U.S: citizen or resident and owner of such offshore company there is zero income tax providing the income can come only from sources outside the U.S. Then you have each year State od Delaware Annual Franchise Tax report which including Franchise Tax 175 USD and Anual Filing Fee 50 USD. And that's it. And as I said if you want you can get an EIN number and if you do then you can work inside the U.S., having business also with U.S. companies... and yes you will lose Offshore status and you will have to pay all the taxes as all other companies, filing reports to IRS, etc.
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Dear Amo, it looks to me that it is you who needs a little bit of additional knowledge... We have been forming and selling US entities since 1993 but stopped forming LLCs due to the reporting requirements.
 
#19
I had a non-resident LLC. Got rid of it when the 5472 reporting requirement began. Amo if you are transferring money from the LLC to yourself or to any other company in which you or a relative owns a stake then it is compulsory to file form 5472 every year or get an automatic fine of $25k - remember that an LLC is a pass through entity and you cannot dissolve the LLC until you have settled such debts otherwise they become the liability of the member (you).

You need an EIN to be able to file 5472 even if the LLC is nonresident and doesn’t have any tax liability. Your info is wrong since 2018.
 
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