US LLC (For use in Europe)

[Otto]

I am based in continental EU, and asked for a solution for an anonymous company, and was suggested a solution with a US LLC.

I am also told I can deduct more expenses than currently, and also some allowances.

How correct is this information?
How expensive should it be (compared to UK, Estonia, Off Shore for example?
How much would I be tied to the setup company?

The idea is that the LLC would own local companies, perhaps through an UK ltd.
I just want to be able to run these companies in peace (This because I have some dead bodies that might come out of closets)
It is not big amounts and it sounds better for me to deduct expenses and have some allowances (that to cheat on tax).
I want to be location independent in the EU, but be registered and pay some tax somewhere.
Also I can change the structure without it being visible locally.

 

[fshore]

I am also told I can deduct more expenses than currently, and also some allowances.

This doesn't make much sense as a US llc is disregarded for taxes in the USA, it is the same as if you would trade without the llc. In Europe its more complicated, some countries will recognise the llc as an independent taxable entity. However in that case they might also consider the llc as tax resident in that local country and tax it as a local company.

 

[Otto]

? With expenses I mean restaurants, travel, rental cars...

 

[fshore]

? With expenses I mean restaurants, travel, rental cars...

? Deduct from what

 

[Otto]

I assume the company would have some income.

 

[fshore]

I assume the company would have some income.

But as the llc is disregarded in USA, to which tax office would you deduct the expenses? If no country consider the llc local resident then yes you can deduct expenses, same as with an offshore company.

 

[Otto]

It's the profit which is disregarded right? If I buy something with a credit card from the company, it goes into the company accounts, right?

 

[UScorp]

As a Non US owner of an LLC you are required to file several forms with the IRS e.g. 5472, so authorities are aware that there are foreign owners. Therefore they will check accounts accordingly. The use of an LLC in Germany or Netherlands is not a good choice

 

[Otto]

5472 is only if it transacts with me right? So if I use a company creditcard to pay airline tickets for restaurants and airline tickets for example, the requirement should not be triggered?

 

[UScorp]

no, here the ink to the form https://www.irs.gov/pub/irs-pdf/i5472.pdf , Reporting requirements and accounting are two things,