Easiest way to get a real (not hidden) business PayPal account (?)

[AmenChoice]

Sounds more complicated and more costly.
WIth a US/UK LLC/LLP it costs maybe $100 to do it online and a trip to a bank. You can even get a US bank online for this at mercury.co as a foreign non resident business for free.

Then you have all the docs needed for your paypal and zero taxes, vs going through Georgian middlemen and paying 5% on dividends etc,
Business PayPal in US/UK is what 2.75%? No avoiding that of course.


Let me add btw that PayPal is not so kind to digital goods, they close accounts for that often enough. With a UK/US LLC however you can certainly acquire a merchant account of your own that will accept those products

Brilliant idea. Makes sense to me but does it actually work in practice? Doesn’t the IRS limit ownership of LLCs to only US residents and ask for ID?

 

[OffshoreResearch]

Personally I'll go for the UK LLP which should be easier to manage in terms of setup/possible tax issues.

 

[James2774]

An LLP seems to be the perfect solution for me, thanks a lot for sharing all these details about it.

1. So the second partner owning 1% of the company might still be able to take possess of the company bank account or there's a way to limit his rights ?

2. What's the % paid on dividends just in case I should decide to withdraw them to my personal bank account instead of going through the Georgian company ? Surely higher than the Georgian 5% I guess
Just to know ...

1. Idk sorry. There are formation companies who do this as
a service and I’m sure you can defund
Trustworthy ones. Also you can set up banks afaik to Only allow certain users. Just Bc you have the LLP docs doesn’t mean the bank will let you withdraw. You have to be added
To the account.

2. LLC and LLP are pass through, zero corporate tax. It’s treated as income when you withdraw to wherever you pay taxes.
Worh the LLP you’ll have UK income tax if you generate revenue in the UK technically.

Brilliant idea. Makes sense to me but does it actually work in practice? Doesn’t the IRS limit ownership of LLCs to only US residents and ask for ID?

Nope, LLC(USA)and LLP(UK) can be owned by foreign non-residents without an ITIN. You’ll need your passport though.

 

[OffshoreResearch]

That's for sure a great solution, I've just one more concern
I'm a Paraguayan resident (I'll buy an apartment in the next few weeks so I'll have a proof of address as well as a local gov. id and a tax payer document) but I don't have yet a Paraguayan passport which will be available within 3 years.

If I'll just need a passport to setup the company, how will I proof to the UK government I've my official residency in Paraguay ? I'm afraid that my home country might force me to pay taxes there or the fact to have reported my new residency will be enough to avoid any issues ?
Obviously I'm spending less than 6 months in my home country.

 

[James2774]

That's for sure a great solution, I've just one more concern
I'm a Paraguayan resident (I'll buy an apartment in the next few weeks so I'll have a proof of address as well as a local gov. id and a tax payer document) but I don't have yet a Paraguayan passport which will be available within 3 years.

If I'll just need a passport to setup the company, how will I proof to the UK government I've my official residency in Paraguay ? I'm afraid that my home country might force me to pay taxes there or the fact to have reported my new residency will be enough to avoid any issues ?
Obviously I'm spending less than 6 months in my home country.

Youre afraid your home country will see the UK LLP income and force you to pay taxes?
What do you do with the rest of your income? This LLP money will be treated afaik just like any other income you receive. I dont think your home govt will be watching it specifically.
If you dont have tax liability from ordinary income in your home country this should be no different regardless.

 

[OffshoreResearch]

Ok, I got it so I'm now ready to start to work on the whole structure.
Thanks again for helping.

 

[burden]

Ok, I got it so I'm now ready to start to work on the whole structure.
Thanks again for helping.

how did you get this setup going? Can you tell me what the setup is you are using today if you got further with it at all?

 

[OffshoreResearch]

Hello,
I'm still working with tons of issues actually because I should go in person to Georgia (my chosen jurisdiction) to rent an office and to setup a PayPal account once I'll be able to verify the company address.
Till few weeks ago there was a forced quarantine for anyone entering the country but I should check again to see if something has changed in the meantime so I'll go there immediately to get things done properly once for all.

Georgia is the best option actually also due to difficulties related to travel, complex bureaucracy etc ...