US LLC + live in Thailand

[pixbix]

@Marzio that all sounds doable, what about my question about reporting to passport country since I won't have tax returns or tax number in Thailand?
I'm not sure how apart from a rental contract I would be able to prove residence if asked by EU taxman.

USA is not doing CRS reporting, so they won't report you anywhere.
US said they can't do CRS reporting because they pay so many spies around the world, and they are afraid they can't do their shady world police stuff anymore.

 

[daniels27]

This may not be a good idea as it could lead to piercing of the corporate veil, meaning you may lose the limited liability that the LLC would otherwise offer:

https://en.wikipedia.org/wiki/Piercing_the_corporate_veil

IMO, the story of the corporate veil is more often a myth and a fairy tale retold in a wrong way. As far as I know, there has not been a single case, where the veil was pierced by spending personal money for business expenses. It is mainly the other way round: When you use business property as if it was yours, there is a risk that all your property is considered to be business property. When you use personal money for business, I see more risk of reverse piercing, which is normally not allowed in the US.
https://www.wolterskluwer.com/en/ex...-owners-of-llcs-and-corporations-need-to-know
However, for a US SMLLC of a foreigner, I would HIGHLY advise not to use any personal card for business purposes because of the requirement to report any such transaction on Form 5472. In my view, this is the much bigger problem of doing so.

 

[yngmind]

How does Thailand treat US LLC?

It's not a corporation, it's a partnership. Why would we have to pay CT?

 

[Marzio]

How does Thailand treat US LLC?

i don't think nobody here knows for sure.

Some countries like UK treat it like an opaque entity while many others treat it like a transparent entity.

If it's considered transparent entity you wouldn't have to pay CIT but PIT upon remitting money into Thailand.

The problem here is that "in theory" you shouldn't be working in Thailand without a permit.

 

[Roo]

When you use business property as if it was yours, there is a risk that all your property is considered to be business property.

Would there be any risk to using a US LLC card to pay for say eating out and grocery shopping or taking out cash at an ATM if it's a disregarded entity? I understand that I will have to report transactions on a form yearly to the IRS. Not sure how much detail that will need to contain.

 

[Marzio]

Would there be any risk to using a US LLC card to pay for say eating out and grocery shopping or taking out cash at an ATM if it's a disregarded entity?

What kind of risk are you referring to?

 

[daniels27]

Would there be any risk to using a US LLC card to pay for say eating out and grocery shopping or taking out cash at an ATM if it's a disregarded entity? I understand that I will have to report transactions on a form yearly to the IRS. Not sure how much detail that will need to contain.

Yes. You will have to report those transactions on form 5472.

And in this case you actually do run the risk of piercing the veil.

I highly recommend using personal cards for business expenses rather than business cards for personal expenses. The US has enough personal credit card with good cash back. You really also risk in losing or on cash back.

What kind of risk are you referring to?

I think any risk. Tax, penalties, law suit, missing cash back, anything.

 

[Roo]

What kind of risk are you referring to?

Any risk of complaints from the IRS, mainly will it cause problems down the line? In Singapore it's perfectly fine to have personal expenses on the company card, or so I've been told and haven't had issues so far (you declare them as personal expense and they are not tax deductible, IRAS has an example of a director paying for his family vacation with company money on their website and it's all good).

Yes. You will have to report those transactions on form 5472.

And in this case you actually do run the risk of piercing the veil.

Not familiar with what piercing the veil entails, I am mostly concerned about compliance/fines or something like that. Law suit isn't the case as I know the people I work with and they are outside the US so no suing people because they are bored.

 

[daniels27]

Any risk of complaints from the IRS, mainly will it cause problems down the line? In Singapore it's perfectly fine to have personal expenses on the company card, or so I've been told and haven't had issues so far (you declare them as personal expense and they are not tax deductible, IRAS has an example of a director paying for his family vacation with company money on their website and it's all good).

Not familiar with what piercing the veil entails, I am mostly concerned about compliance/fines or something like that. Law suit isn't the case as I know the people I work with and they are outside the US so no suing people because they are bored.

In this case, you just need to properly declare n form 5472.

 

[Roo]

Does a US LLC have to distribute funds at the end of the year to the bank account of the owner? I read some confusing information about this, I don't really understand why that would be the case but would like to know what to expect.

 

[JackAlabama]

Does a US LLC have to distribute funds at the end of the year to the bank account of the owner? I read some confusing information about this, I don't really understand why that would be the case but would like to know what to expect.

nope, no need for forced distributions.

 

[MrBaggins]

Would the US business bank not question or find issue with you doing random daily transactions like buying food, bars, taxis, gogo bars, paying rent on the company card or via bank transfers ? What if they ask you what these transactions are for? You can't say it's personal because the account is for the LLC? Risk of account closure?

One other question - if you get a personal bank account in a foreign country, say HK, that your US LLC pays you into, and you live in Thailand with Thai tax residence, is there any risk that Thailand would investigate or ask about the money in your personal foreign bank account and where that comes from? Assuming they are notified about this money due to CRS. Im thinking Thailand could nail you for working for your LLC while being tax resident and living in TH this way?

 

[Radko]

Would the US business bank not question or find issue with you doing random daily transactions like buying food, bars, taxis, gogo bars, paying rent on the company card or via bank transfers ? What if they ask you what these transactions are for? You can't say it's personal because the account is for the LLC? Risk of account closure?

One other question - if you get a personal bank account in a foreign country, say HK, that your US LLC pays you into, and you live in Thailand with Thai tax residence, is there any risk that Thailand would investigate or ask about the money in your personal foreign bank account and where that comes from? Assuming they are notified about this money due to CRS. Im thinking Thailand could nail you for working for your LLC while being tax resident and living in TH this way?

This answers a lot of those questions.