My biggest concern with such a setup is what will happen if your customers are audited and they demand a tax residency certificate for your “US” LLC.
What are the best countries to be tax resident for a US LLC?
Tax residence certificate is not something that's commonly used for business in the US, it wouldn't be easy to get any US supplier to supply one. Privacy is important in the US, and a disregarded LLC wouldn't get a tax residence certificate in any case, so the member would have to get one, and this is something that few Americans would want to share with a foreign partner.My biggest concern with such a setup is what will happen if your customers are audited and they demand a tax residency certificate for your “US” LLC.
@CaptK I don’t understand the difference between options 1 and 2.
And where would the LLP pay its taxes? If he lives in Poland, wouldn’t he have to pay taxes in Poland...?
My biggest concern with such a setup is what will happen if your customers are audited and they demand a tax residency certificate for your “US” LLC.
Option 1 is a managed service there for everything to prove substance is included. So he can be wherever he wants.
Option 2 is just a normal company and you are on your own.
UK option again is like option 1 just a lot more accounting and receipt keeping. As UAE there is no need for accounts. He can live wherever he wants.
I didn't think about that.What if I don't care?
I mean they got audited not me (I have a lot of different customers so..).
With all the territorial taxation countries, I was more thinking if it doesn't exist a small state/country in or near EU where a US LLC is taxed like self-employed and not local corporation.
Thanks for this good advice.You should probably use a state like Texas or Florida then, and not Wyoming/Delaware/New Mexico. The latter three are known as tax haven states (because they provide anonymity) and the risk of a tax inspector taking a closer look increases.
Ok yes, perfectly clear.Why would that help? With a business, you can always say “the business is in the other country”, if it’s you as a person, they can say you are tax resident there, so it’s local income.
Territorial taxation usually only applies to passive income.
The big question is: where is is interesting to be tax resident with a US LLC?
Sorry, I was not clear. It was for Poland.Cyprus is not in the Schengen area.
Stupid question but why Schengen country only. You are speaking about living there (tax resident) or for the corporation level?If that’s what you want to go for, just go with Bulgaria or some other Schengen country with low taxes
But it matters to have a tax residency certificate or proof to remove all my ties with France and that’s why Cyprus seemed easy for it.save yourself the hassle of spending 60 days in Cyprus. Those 60 days don’t matter anyway when you spend so much time in Poland. Cyprus wouldn’t protect you when Poland comes for you. So just go for a simpler solution with no minimum number of days to spend in the country.
Sure but I don't see the problem. Under the non-dom 60 days, it's completely legal to spend only 60 days in Cyprus (and maintain home there of course).With Cyprus, they can in theory just pull up the Schengen border crossings and see you’ve been in the Schengen area (outside of Cyprus for 300 days).
Does it mean than residency and tax residency will be consider same for your home residence at this level?I don’t think anyone will care about your Cyprus tax residency certificate, but I could be wrong.
I am really interested about countries which they don't require to spend a lot of time there.Move to Bulgaria or some other country that doesn’t require you to spend X days there.
Sure but I don't see the problem. Under the non-dom 60 days, it's completely legal to spend only 60 days in Cyprus (and maintain home there of course).
I am really interested about countries which they don't require to spend a lot of time there.