UK LTD , US LLC and new 2020 SMEs rules

[onemansomewhere]

This foundation does not have a director. It has a council. 3 physical persons or 1 company. For a better privacy, having some offshore company to be a council member is a must.
You can set exact beneficiary, or you can set any legal way how to identify a beneficiary in a future: For example - Beneficiary is a persson whose name and personal details are printed in a paper within sealed envelope in a safebox of a public notary custody in some other country...
This is a bullet proof structure how no one is ever able to identify who is a real person behind all operations.

Expected costs - this is not advertiginr nor any kind of offfer - just selection from publicly avaible informations:

Incorporate some cheap offshore company anywhere (To be only panama foundation council member) 600-1200 USD - depends on location. I personaly prefer Costa Rica. Whereas there is spanish language as official language, the same as in Panama, so you does not have to translate corporate documents. Costa Rica is little bit more expensive, but for having it as a panama foundation council member, it is absolutely the best choise. This isualy costs somewhere between 1500-2000 USD.

Panama foundation + Apostilled and translated and notarized set of documents, including some courier fees, etc.. aprox. 2000 USD.

Formation of US LLC - The best state by my opinion is Wyoming + Street address (No POBOX - Banks has a list of all US POBOXes and will not open a bank account when comany is using a POBOX address) + Phone number - Aprox. 1000 USD.

To be able to open a US bank account, you will also need a US EIN for a company and US ITIN for you as a physical person. This can cost all together 500-1000 USD.

And you have to calculate a costs to travel to he USA to open a bank account..

All this costs which I wrote you are just in case if you do everything by yourself. This costs are not any kind of offer. This costs are just aggregated data from internet.

 

[JustAnotherNomad]

What if you don’t care about anonymity? Would you still go for such a complex structure? In other words, how big is that “significant customer” tax risk?

 

[onemansomewhere]

What if you don’t care about anonymity? Would you still go for such a complex structure? In other words, how big is that “significant customer” tax risk?

How much is a risk?
10-25 years in a prison

 

[JustAnotherNomad]

10-25 years in prison? I was taking you seriously until this point.

 

[onemansomewhere]

10-25 years in prison? I was taking you seriously until this point.

Failure to declare and pay federal corporate taxes or federal income taxes is a federal crime in the United States. For this federal crime, a convicted offender may be sentenced to not more than 25 years in federal prison. That is a law. Whether you like it or not. The creation of a structure where a foreign person is responsible for declaring and paying corporate or income tax does not in any way disguise the person who manages the entire structure for personal criminal liability.

 

[JustAnotherNomad]

Obviously one would use a CPA. Worst case would certainly be back taxes and possibly a fine - which probably would be waived if you can demonstrate you acted in good faith.

 

[Alex Fr]

Onemansomewhere, thanks for very useful information.
What else jurisdiction would you suggest for the ofshore company which is supposed to be the council of foundation?
There are not many suitable ones in light of fact that a lot of ofshore jurisdisctions are creating UBO registries for future automatic or per request exchanges with the country of UBO
Though looks like Costa Rica, US Virgin Islands are not going to do it in the nearest future.

 

[onemansomewhere]

Onemansomewhere, thanks for very useful information.
What else jurisdiction would you suggest for the ofshore company which is supposed to be the council of foundation?
There are not many suitable ones in light of fact that a lot of ofshore jurisdisctions are creating UBO registries for future automatic or per request exchanges with the country of UBO
Though looks like Costa Rica, US Virgin Islands are not going to do it in the nearest future.

Costa Rica is the most preferred one. Also Guatemala. But for having a guatemalan companym you will need another one from any other country, whereas you need 2 shareholders in Guatemala. But Guatemala does not publish UBOs and I do not expect to start in next 10 years..

 

[Alex Fr]

So though Costa Rica launched their own UBO registry in 2019 you think it will not be public accessibly for some reasonable time.

It is bad to use nominee councils for Panamian Private Interest Foundation (with pre-signed, undated letters of resignations so that one can replace the council/directors at any time.) ? Any advice where it's better (safer) to get public notary custody services for that envelope with letter of wishes? What if put it into bank safe deposit box?

 

[fshore]

Person which is considered to be a sole proprietor is liable for US Tax if this US LLC has any customer in USA or supplier in LLC which is so called significant..

You seems to misunderstanding what a disregarded llc means. It means that it is disregarded for tax purposes. The single member is taxes as he was trading without the existence of the llc.

Yes there are situations where foreigners can have to pay tax to the USA, it's mainly if you have staff or an dependent agent in USA, and for some types of income.
This would be similar if you trade using a foreign company (except you would shift liability to the company and not yourself), while in some situations it's easier for a sole proprietor than a company.
If you believe you should pay tax to USA then you should hire a CPA and deal with that no matter if you are a foreign sole trader (with or without a llc) or a foreign company.

 

[Loisir]

Hey guys. Sorry i had personal issues that took me away for 2 weeks.

@tco99 can you please elaborate, and in fact i saw that Moroccan entity has 30% tax or something like that so it will not resolve the case, for that kind of taxes EU is better.

@JustAnotherNomad Yes i was thinking like you, but maybe for future tax reason or prove of profits, it will be better to show that the UK LTD actually is a part of the structure with the US LLC because on the website it will be the US LLC that is showed on legal mention. Only a lease licence agreement will be enough ?

@onemansomewhere as always good advice, however this type of set up require time, money. I will definitely go for it but after some profits. I prefer to start with low fee and easy structure then upgrade when the turnover is more serious. On this matter could you please give me an advice regarding the question just above and the topic ? i was thinking of doing these set up for like one year , and depend on possible profits or not change residency and legal structure


Thank you guys , much appreciated.

 

[onemansomewhere]

Hey guys. Sorry i had personal issues that took me away for 2 weeks.

@tco99 can you please elaborate, and in fact i saw that Moroccan entity has 30% tax or something like that so it will not resolve the case, for that kind of taxes EU is better.

@JustAnotherNomad Yes i was thinking like you, but maybe for future tax reason or prove of profits, it will be better to show that the UK LTD actually is a part of the structure with the US LLC because on the website it will be the US LLC that is showed on legal mention. Only a lease licence agreement will be enough ?

@onemansomewhere as always good advice, however this type of set up require time, money. I will definitely go for it but after some profits. I prefer to start with low fee and easy structure then upgrade when the turnover is more serious. On this matter could you please give me an advice regarding the question just above and the topic ? i was thinking of doing these set up for like one year , and depend on possible profits or not change residency and legal structure


Thank you guys , much appreciated.

You are asking me: How can I buy a BMW X5 for less than 5K..
If you do not have time and money, just incorporate a company anywhere and pay taxes. That is all.
If you have time and money, you can create a reasonable structure.
There is nothing like having a reasonable structure for a few bucks..

 

[Loisir]

@onemansomewhere Understand your point, Your structure with foundation etc.. is good and and stable for long term run, will definitely go for it in near future.

I was specifically asking for the ownership of the UK LTD by the US LLC if its valuable or not in my case. Appreciate your time and comprehension.

 

[onemansomewhere]

@onemansomewhere Understand your point, Your structure with foundation etc.. is good and and stable for long term run, will definitely go for it in near future.

I was specifically asking for the ownership of the UK LTD by the US LLC if its valuable or not in my case. Appreciate your time and comprehension.

Almost none bank will open a bank account for UK LTD owned by US LLC. ANy sign of tie with US is a red light for each banks all around the world. Whereas UK Companies house is public, US LLC as owner will be seenable. So you will have a structure but no bank account.