US LLC without taking out Dividends

[inector]

I plan to move to Estonia, and open US LLC, but I am aware of Permanent Establishment (PE) and management rules.

Estonia has 0% tax until distribution.

But what if I use the LLC only for card and business expenses, keep it 0$ profit to the end of the year, and never send funds to my personal account (aka distributions)?

Even if Estonia finds out, my receipts are in place, I never take out money to my personal account, etc. They technically would have nothing to fine?

Am I wrong and there is still a risk?

 

[daniels27]

Estonia has 0% tax until distribution.

I think they are soon to have a 2% defence tax.

But what if I use the LLC only for card and business expenses, keep it 0$ profit to the end of the year, and never send funds to my personal account (aka distributions)?

If you have $0 profit, you cannot take out anything. But that would mean your business is not profitable. Is that possible?

Even if Estonia finds out, my receipts are in place, I never take out money to my personal account, etc. They technically would have nothing to fine?

Only the 2% defense tax. But would they accept all your expenses? And would you pay the tax eventually? Also, you would have failed to register the foreign company in Estonia.

Am I wrong and there is still a risk?

Yes. See above. Honestly, I would not do it.

 

[inector]

2% defence tax

Indeed a problem, but from 2026

If you have $0 profit, you cannot take out anything. But that would mean your business is not profitable. Is that possible?

Yes, I would just use that LLC for expenses and a few client payments, not for major revenue

 

[daniels27]

Indeed a problem, but from 2026

Yes, I would just use that LLC for expenses and a few client payments, not for major revenue

If the company is losing money, there will be limited interest. But what are those expenses? Holidays on the beach? Why even bother with a LLC for no profit?

 

[dany]

I plan to move to Estonia, and open US LLC, but I am aware of Permanent Establishment (PE) and management rules.

Estonia has 0% tax until distribution.

But what if I use the LLC only for card and business expenses, keep it 0$ profit to the end of the year, and never send funds to my personal account (aka distributions)?

Even if Estonia finds out, my receipts are in place, I never take out money to my personal account, etc. They technically would have nothing to fine?

Am I wrong and there is still a risk?

very good detailed explanation in mentor group FYI - https://www.offshorecorptalk.com/threads/anonymity-with-passive-owner-how-to-accomplish-it.47023/