Can I use business bank account for personal expenses. US LLC for non-resident alien; non-ETBUS; EU national living in the EU

[resident101]

Hi All,

I have an LLC in the US. I will be providing consulting services and I need a way to issue invoices and get paid.

I live in EU and I am an Eu national. I want to use my US LLC to get paid for my work.

For tax purpose, I won't owe any tax in the US since the activity doesn't take place in the US, I am not American, non-ETBUS etc.

So when I get paid on my US business bank account, can I just use that money for personal expenses? The LLC is simply for the purpose to get paid. I won't be getting investors, get debt, etc.

It is ok to be using the business bank account for personal stuff given these circumstances?

Regards!

 

[Sols]

Generally speaking, no. Don't mix company money and personal money. Nothing good can come from it. I have seen so many people make this mistake and end up in a huge mess.

 

[Forester]

I agree with @Sols, just adding that it is simply not wise, regardless of fact that in some jurisdictions it is even prohibited (namely in the U.S.A., it may vary from state to state, I guess).

(BTW, the earnings you have mentioned can be very well liable to tax in your resident country; but I presume you are aware of it.)

 

[resident101]

Thank you for your replies.

So it seems I would have to transfer that to a US personal bank account or to send it abroad to an EU account where it will need to be reported as foreign income.

 

[Sols]

So it seems I would have to transfer that to a US personal bank account or to send it abroad to an EU account where it will need to be reported as foreign income.

The US LLC is very likely tax resident where you live and would have to pay corporate income tax, unless US LLCs are considered partnerships where you live, in which case they may be tax transparent.

The funds you pay yourself may be considered dividends or salary, depending on how local law treats US LLCs. If it's salary, you may need to pay social security contributions as an employer and/or employee. Furthermore, the money becomes taxable at the moment you earn it, regardless of whether you send it abroad to an EU account or not.

Speak to a lawyer or local professional tax adviser before you accidentally commit major tax fraud. You're making assumptions I've seen many people make before and end up regretting.

 

[TheCryptoAnt]

hell yeah just cook the books who cares