Transparent taxation for better reputation

[JustAnotherNomad]

There are a couple of structures where - as far as I know - transparent taxation would apply. For instance a non-resident US LLC (disregarded entity) or partnerships (LP) like they can be found in Canada or the UK.

If an offshore company owned such an LLC or was a partner in such a partnership, the company would be taxed where the offshore company is tax resident - right?
Would this be feasible to achieve higher reputation? My customers would never be willing to do business with a company from Belize or Georgia, but a US LLC would of course be fine.

Anyone have any experience with such a setup?

 

[John Andrews]

There are plenty of UK LLPs with Belize/Anguilla/etc. members so it's definitely possible, although I'm not sure about US LLCs being used for this, I hope someone else can provide info on this. The issue with this is, you guessed it, opening a bank account. No bank will open an account for a LLP with Belize members.

 

[JustAnotherNomad]

I would assume the same banks that would open an account for a Belize/whatever offshore company would open also an account for such an LLP/LLC?

 

[John Andrews]

I guess so yeah. I would also avoid anything US related.

You can try setting up a LLC in Georgia then forming a UK LLP and applying for a bank account in the same bank. Might work but idk about PayPal/etc.

Getting an account for a LLP with Belize members will most likely be harder.

 

[James Turner]

Yes a US LLC can certainly have an offshore company in Belize etc as a Member (Shareholder). The issue as @mange38 describes is when arranging banking for the US Company. Not only will the bank default to the worst part of the structure (i.e. the Belize Company) which will not be acceptable to some banks, but US Companies, citizens and residents are not always the most welcomed by banks themselves and so US Companies have equally limited options for banking as Belize Companies do. So you could find that the combination of unacceptable company location + unacceptable company location makes banking arrangement very difficult indeed.