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LLC Delaware VS Dubai company - 100% Online Business

Giuseppe Rossi

Giuseppe Rossi

New member
Feb 18, 2021
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35
Milano
#1
Hello everybody. I hope it is not a discussion already addressed, but I have not found an answer.

> The question is for a 100% online business that sells an online course. So 100% online. And the business sells to Europe.

----------

If I (admin) live in Dubai, is it better an LLC in Delaware or a company in Dubai? And why?

For example, as I know (but I'm not 100% sure), even if there are 0% taxes in Dubai, you need to have an accountant to have your accounting in order.

On the other hand in Delaware there is no accounting to be done. So the corporate structure is much leaner.

With a company in Dubai, I should hire a person to handle the accounting. in Delaware NO.

So for this reason alone, an LLC in delaware is much better from my point of view.

Do you have other points of view? Am I missing something?

Thank you
 
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#2
Much better in Dubai or another UAE state. The law says that minimum accounting is required to be maintained, but there is no need to do accounting reports. So you can keep a basic excel sheet and do your own basic accounting. No need to hire an accountant.
 
#3
I agree, UAE FZ would be a better solution as your clients are in Europe. With this company you only need to keep basic bookkeeping unless you deal with GCC countries at any point then you will be required to keep full accounts because you will be liable for VAT.
 
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#4
But why is Dubai a better solution?

For example I use Stripe and PayPal. And in Dubai it wouldn't be possible.

So I should use an LLC as a payment gateway (only for Stripe and Paypal).

At this point, why not use the LLC directly?

I still don't see the benefit.

I understand that there is minimal accounting in dubai, and thank you for the feedback.

But the LLC has zero accounting.

Then

Accounting
LLC Delaware: It doesn't
Dubai company: Minimal, but it has it.

Stripe and PayPal
LLC Delaware: You can have it
Dubai company: You can't have it

Also there are no problems selling in Europe from an LLC.


I still don't see a clear and logical rationale as to why a company in dubai is better than an LLC in Delaware (clearly compared to my needs written above, and not in a GENERIC way).


So I ask you the courtesy to give me a judgment based on my needs, and not from a generic point of view.

Thanks a lot to everyone! :)
 
#5
Giuseppe Rossi said:
But why is Dubai a better solution?

For example I use Stripe and PayPal. And in Dubai it wouldn't be possible.

So I should use an LLC as a payment gateway (only for Stripe and Paypal).

At this point, why not use the LLC directly?

I still don't see the benefit.

I understand that there is minimal accounting in dubai, and thank you for the feedback.

But the LLC has zero accounting.

Then

Accounting
LLC Delaware: It doesn't
Dubai company: Minimal, but it has it.

Stripe and PayPal
LLC Delaware: You can have it
Dubai company: You can't have it

Also there are no problems selling in Europe from an LLC.


I still don't see a clear and logical rationale as to why a company in dubai is better than an LLC in Delaware (clearly compared to my needs written above, and not in a GENERIC way).


So I ask you the courtesy to give me a judgment based on my needs, and not from a generic point of view.

Thanks a lot to everyone! :)
Click to expand...
You didn’t state you need PayPal and stripe.
then a UK LLP would be a better solution. The LLC still needs to file forms 5XXX and 8XXX I can’t remember them off the top of my head.
 
#6
You are right. mostly because I wanted to know important reasons.

Because the fact that with the LLC you can even not keep the accounts seems to me a great benefit.

Anyway, so LLP UK is better than LLC in delaware because there is nothing to fill in?

Another point is that maybe in a few years if I go to live in the UK (it's my idea in a few years, but obviously I don't know now), and at that point if I were just a shareholder, I would not benefit from the non dom.

On the other hand, if it were an LLC in Delaware, yes.

To fill those forms with the LLC there are many good services that do it for you.
 
#8
fshore said:
It's not easy to get paypal and stripe for non resident llc, unless you have a SSN from before.

You can open stripe, but they probably shut you down shortly.
PayPal requires SSN.
Click to expand...
But if Stripe opens the company to you (even if you are not a resident).

Why should you close your Stripe account?

The only thing you need is the EIN, which stripe provides it to you when you open the LLC (via Stripe Atlas).

So I don't understand how much you write.

https://stripe.com/atlas
 
#12
Giuseppe Rossi said:
Hello everybody. I hope it is not a discussion already addressed, but I have not found an answer.

> The question is for a 100% online business that sells an online course. So 100% online. And the business sells to Europe.

----------

If I (admin) live in Dubai, is it better an LLC in Delaware or a company in Dubai? And why?

For example, as I know (but I'm not 100% sure), even if there are 0% taxes in Dubai, you need to have an accountant to have your accounting in order.

On the other hand in Delaware there is no accounting to be done. So the corporate structure is much leaner.

With a company in Dubai, I should hire a person to handle the accounting. in Delaware NO.

So for this reason alone, an LLC in delaware is much better from my point of view.

Do you have other points of view? Am I missing something?

Thank you
Click to expand...
G, hi.
Delaware is better than other jurisdictions if your account is located in the USA. If you want your names not to appear to the public, then definitely Delaware, will be the place. They don't tax at the state level, S and C corporations don't tax at state level. I strongly advise clients when they are forming a business to do it in the state where they are located, and have local directors or local managers who can open or register the company.
 
#13
FAS said:
G, hi.
Delaware is better than other jurisdictions if your account is located in the USA. If you want your names not to appear to the public, then definitely Delaware, will be the place. They don't tax at the state level, S and C corporations don't tax at state level. I strongly advise clients when they are forming a business to do it in the state where they are located, and have local directors or local managers who can open or register the company.
Click to expand...
Delaware has state income tax of 8.7% for corporations. But only if you have nexus in Delaware. This is the same as for most other US states, you only pay state income tax if you have local Nexus.
 
#14
ecool said:
Can you share how did you do it? Because they explicitly say in their docs that they don't.


Unless it means that they don't recommend it but they can do it :confused:

Or unless you are from the US, then yes you can :p
Click to expand...
Before answering, I preferred to investigate through my partner who did the whole operation.

I was wrong about Atlas, but used this service: Firstbase.io

They opened the company to us without any problems. And they also open a business account with a bank for you.

Also I know 3 people who have a company in delaware and nobody has problems with Stripe and PayPal. So I don't understand the problems you talk about. :confused: Strange.
 
#15
FAS said:
G, hi.
Delaware is better than other jurisdictions if your account is located in the USA. If you want your names not to appear to the public, then definitely Delaware, will be the place. They don't tax at the state level, S and C corporations don't tax at state level. I strongly advise clients when they are forming a business to do it in the state where they are located, and have local directors or local managers who can open or register the company.
Click to expand...
But I knew that an LLC was great for those who DON'T live in the US though
 
#16
Giuseppe Rossi said:
Before answering, I preferred to investigate through my partner who did the whole operation.

I was wrong about Atlas, but used this service: Firstbase.io

They opened the company to us without any problems. And they also open a business account with a bank for you.

Also I know 3 people who have a company in delaware and nobody has problems with Stripe and PayPal. So I don't understand the problems you talk about. :confused: Strange.
Click to expand...
Well, come back here and report after you've opened stripe and PayPal and run a few K through them.
 
#17
i dont know if you are ironic, but a friend of mine has an LLC in delaware that makes 10M a year, with a stripe account (of 10M account).

And he lives in Malta.

But this forum should be used to help, not to be ironic :)
 
#18
Giuseppe Rossi said:
On the other hand in Delaware there is no accounting to be done. So the corporate structure is much leaner.

With a company in Dubai, I should hire a person to handle the accounting. in Delaware NO.
Click to expand...

No in Delaware, accounting is also mandatory. Be careful about what you read on the Internet: to fill form 5472, you definitely need to maintain proper accounting and so the IRS could asked your financial statements.

About accounting in Dubai, you can do it by yourself using an app like ZOHO BOOKS. Then you have to appoint an auditor (it is also mandatory as federal law). Cost is around AED 2,000 per year.
 
#19
In your case & your business( sells an online course)
I will go for UAE FZ
Why?
in UAE FZ you take advantage of tax-free system
Both Paypal and Stripe are available in UAE
In the case of US LLC: I guess the online course would be considered Royalty and in that case, You may have to pay 30% as withholding taxes(the same thing goes for Dividends...)
P.S: there is an exception if you live in a country that had a tax treaty with the US.
Good Luck
 
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#20
Hazqiyal said:
Both Paypal and Stripe are available in UAE
Click to expand...
how will you set this up as a non resident in the UAE? PayPal at least will require a local utility bill for the UBO ?
 
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