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HK or USA LLC for a bulgarian resident ?

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baliz71

Mentor Group Silver
Jan 31, 2019
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#1
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Hello,

I have a small question. I have a company in Bulgaria where I am a tax resident, I am in ecommerce dropshipping field. In order to have more flexibility, more banking options etc, I am considering opening a company in HK or in the USA for my business, but I can't decide which is more interesting for me.

What I'm looking for :
- Simplified accounting
- Easy to set up and maintain without too much bureaucracy
- A reliable option for a Bulgarian resident that won't pose any problems for the Bulgarian authorities.
- Robust banking and payment processors

So, HK or USA ?

Thank you for your help!
 
#2
HK pretty much does not fit any of this. They have annual audits, need a secretary and have expensive payment processors. On top of that you are not sure wehther they will accept your tax-free claim.

US does fit may of this. But for the payment processor part, they are mainly only useful for US sales. Fees are much more than what you get in Europe.

And for the Bulgarian point, both companies need to be registered in Bulgaria and you need to pay taxes in Bulgaria.

In your case, most likely a company in a EU country would be of more benefit to get better deals on banking and payment. You can then apply for a tax ruling and will only be taxed in Bulgaria.
 
#4
Yes, i know i need to pay taxes in Bulgaria, this is not a problem for me;
The more interesting point is mostly in paiement processors, for example in HK you can get Oceanpay, useepay, that provide more local paiement processors than stripe for example, wich can be useful for me. So in the same time, if everything can be simplified, it can be a good deal for me :p
 
#5
baliz71 said:
Yes, i know i need to pay taxes in Bulgaria, this is not a problem for me;
The more interesting point is mostly in paiement processors, for example in HK you can get Oceanpay, useepay, that provide more local paiement processors than stripe for example, wich can be useful for me. So in the same time, if everything can be simplified, it can be a good deal for me :p
Click to expand...
Where are your customers located?

Having a HK payment processor for EU clients does not make any sense in most cases. Likewise, having a US LLC for HK clients also makes no sense.
 
#9
First, the accounting part, i like the fact that the accounting part is outside Europe, so bulgarian tax have nothing to ask me related to my company. Then, the paiement processors, Stripe don't have lot of local paiement processors for Latam for example, with HK, you can get access to Mercadopago, Oxxo, and so on, very popular here. Also easy access to klarna too for example.
 
#11
Like the gentleman's already clarified, you have to relocate if you want to avoid the Bulgarian tax office to get off you. Since you are an EU citizen, you will be taxed where you live unless you build massive substance in another country for your company and can keep it secret that you own another company outside Bulgaria.
 
#12
ImKing said:
Like the gentleman's already clarified, you have to relocate if you want to avoid the Bulgarian tax office to get off you. Since you are an EU citizen, you will be taxed where you live unless you build massive substance in another country for your company and can keep it secret that you own another company outside Bulgaria.
Click to expand...
He doesn't even want to save tax.

@baliz71 please tell us what payment methods you need, we will do our best to get you to accept those.
 
#14
Yes, the idea is not to be "secret" , i will declare it, the taxation in bulgaria is "OK" - i just need more paiement processors (like oxxo, mercadopago, klarna, etc) i contacted already airwallex, and ayden and got rejected. HK have some processors with account manager that can facilitate the process for example (via oceanpayment, useepay...)
A bonus can be also the accounting less strict than in Bulgaria, and to have something out of bulgaria too :)
 
#15
I doubt you will be able to avoid the accounting. You will have to do accounting both in the other country AND in Bulgaria, so it's just extra work, like I said.
And I wouldn't be sure you will be able to get access to payment providers, they usually want to see some substance in the other country (office etc.).
 
#18
baliz71 said:
Yes, the idea is not to be "secret" , i will declare it, the taxation in bulgaria is "OK" - i just need more paiement processors (like oxxo, mercadopago, klarna, etc) i contacted already airwallex, and ayden and got rejected. HK have some processors with account manager that can facilitate the process for example (via oceanpayment, useepay...)
Click to expand...

baliz71 said:
A bonus can be also the accounting less strict than in Bulgaria, and to have something out of bulgaria too :)
Click to expand...
thats not a bonus as long as you live in Bulgaria, they can simply ask you to do the things you are not required to do by HK since they gonna treat it like a local business.
 
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