Wyoming, Delaware or New Mexico, please tell me what's your choice?

[Mark Rucken]

I faxed to number that you advised above and called to IRS. They issued EIN to my LLC and gave me a number, but Operator said: IRS will fax confirmation letter during 1-2 months.
He said IRS have only one fax machine. Be patient

You should receive original letter confirmation to your mailing address stated on SS4 form. If mailing address is in the US, you will get the letter in 2 weeks. If it is abroad, you might wait for 2-3 months.

Where do you intend to open bank account? Normally banks are fine with a simple written EIN confirmation you can do yourself. Just inform the bank that you were given the number orally, US banks and online banks almost never ask for official EIN confirmation.

 

[megasis]

You should receive original letter confirmation to your mailing address stated on SS4 form. If mailing address is in the US, you will get the letter in 2 weeks. If it is abroad, you might wait for 2-3 months.

Where do you intend to open bank account? Normally banks are fine with a simple written EIN confirmation you can do yourself. Just inform the bank that you were given the number orally, US banks and online banks almost never ask for official EIN confirmation.

I have not SSN, so I can use only Mercury? or may be you know other banks?
Simple written confirmation: like I confirm that Company LLC EIN is xxxxx?

 

[EuroKiss]

I have not SSN, so I can use only Mercury? or may be you know other banks?
Simple written confirmation: like I confirm that Company LLC EIN is xxxxx?

Mercury is fine with the EIN faxed back from IRS, make sure before applying to have a real business, a good Web page (that’s helped me a lot!) and professionally written information on your Web (including a good About Us). Original EIN will be mailed to your legal address (should be your registered agent’s office) but usually for bank account the IRS fax should be enough.

 

[megasis]

Mercury is fine with the EIN faxed back from IRS, make sure before applying to have a real business, a good Web page (that’s helped me a lot!) and professionally written information on your Web (including a good About Us). Original EIN will be mailed to your legal address (should be your registered agent’s office) but usually for bank account the IRS fax should be enough.

as I understood Mercury open bank account with Evolve and Trust bank, the same as Transferwise. May you know any possibility to open account with real bank?

 

[EuroKiss]

as I understood Mercury open bank account with Evolve and Trust bank, the same as Transferwise. May you know any possibility to open account with real bank?

Evolve and Trust is the backend of several Fintech, not just Mercury, of course they can open a bank account directly but from what i understood you are not a resident, so we are talking about an account you can open remotely. If you are physically in US, better go to Wells Fargo or other major banks.

 

[jakubko666]

He said IRS have only one fax machine. Be patient

lol

 

[exprtadvisrdev]

why that?

Because they aren't that efficient, sometimes they mess up when someone sends multiple times the fax. That's why some people recommend to send it only once (but I guess that if you have been waiting for months then shouldn't be an issue to send it again)

 

[netixone]

This is how I have used WY and DE and UK together.

Firstly:
1) I am a privacy nut. Because of the legal work I do outside of dayjob, I have used the following setup. It doesn't provide complete bulletproof privacy, but it's enough. LLP seems to be better when working with legal entities in the UK (tracing agents etc)
2) It is not the cheapest, but it works for me, and the setup pays for itself
3) The banking works fine

The method is "build it backwards", as this should explain. I'll refer to the following using the ficticious name "Acme". Where I mention "office lease" this is not the same as a virtual office - you actually get a legal valid lease, notarised, which proves the right to use the address
1) Form Acme LLC in DE - I am the named member - apply EIN - full virtual office with office lease provided
2) Form Acme LLC in WY - I am the named member - full virtual office with office lease provided
3) Form Acme LLP in UK in my own name. I am one partner, Acme UK Ltd that I own is the second partner. This is in effect the same as a "single member" LLC. For all intents, the taxation is the same (passthrough)
4) Open account using DE LLC with Mercury.io
5) Open Starling account or Tide account in UK. I personally find Tide easier to deal with. Also have iZettle for CNP, and TW for people who prefer to pay that way.

Once this is done:
1) Acme LLP is replaced by myself with DE LLC - some limited personal protection
2) Internal resolution to make DE LLC member-manager of the WY LLC
3) Update Registered Agent in WY to send post to DE
4) Update Registered Agent in DE to scan / post all mail to the LLP

Trade:
1) The "front facing" company is the Wyoming LLC. Why?
1.1) Holds no assets
1.2) Very difficult to financially attack
1.3) Only state in the USA that allows "lifetime nominees", which means I can predraft nominee agreements to point the LLC somewhere else if anything does go wrong

Banking:
1) I try and use the DE LLC for payments were possible, for privacy
2) If this isn't viable, I invoice through LLP

Taxation:
1) LLP invoices DE LLC for commercial services (eg trademark license) for full value of what is raised, this is remitted to the LLP
2) The UK Ltd which is the partner of the LLP then invoices the UK Ltd for services.
3) Benefits:
3.1) Taxation passthrough LLC > LLP > UK Ltd - draw money using "low wage, high dividend" route
3.2) I don't suffer tax personally being a member of the LLP, although I do have to pay some additional Class NICs as "self employed"

Other benefits:
1) UK facing company if required
2) USA facing company if required

 

[Fothermucker]

This is how I have used WY and DE and UK together.

Firstly:
1) I am a privacy nut. Because of the legal work I do outside of dayjob, I have used the following setup. It doesn't provide complete bulletproof privacy, but it's enough. LLP seems to be better when working with legal entities in the UK (tracing agents etc)
2) It is not the cheapest, but it works for me, and the setup pays for itself
3) The banking works fine

The method is "build it backwards", as this should explain. I'll refer to the following using the ficticious name "Acme". Where I mention "office lease" this is not the same as a virtual office - you actually get a legal valid lease, notarised, which proves the right to use the address
1) Form Acme LLC in DE - I am the named member - apply EIN - full virtual office with office lease provided
2) Form Acme LLC in WY - I am the named member - full virtual office with office lease provided
3) Form Acme LLP in UK in my own name. I am one partner, Acme UK Ltd that I own is the second partner. This is in effect the same as a "single member" LLC. For all intents, the taxation is the same (passthrough)
4) Open account using DE LLC with Mercury.io
5) Open Starling account or Tide account in UK. I personally find Tide easier to deal with. Also have iZettle for CNP, and TW for people who prefer to pay that way.

Once this is done:
1) Acme LLP is replaced by myself with DE LLC - some limited personal protection
2) Internal resolution to make DE LLC member-manager of the WY LLC
3) Update Registered Agent in WY to send post to DE
4) Update Registered Agent in DE to scan / post all mail to the LLP

Trade:
1) The "front facing" company is the Wyoming LLC. Why?
1.1) Holds no assets
1.2) Very difficult to financially attack
1.3) Only state in the USA that allows "lifetime nominees", which means I can predraft nominee agreements to point the LLC somewhere else if anything does go wrong

Banking:
1) I try and use the DE LLC for payments were possible, for privacy
2) If this isn't viable, I invoice through LLP

Taxation:
1) LLP invoices DE LLC for commercial services (eg trademark license) for full value of what is raised, this is remitted to the LLP
2) The UK Ltd which is the partner of the LLP then invoices the UK Ltd for services.
3) Benefits:
3.1) Taxation passthrough LLC > LLP > UK Ltd - draw money using "low wage, high dividend" route
3.2) I don't suffer tax personally being a member of the LLP, although I do have to pay some additional Class NICs as "self employed"

Other benefits:
1) UK facing company if required
2) USA facing company if required

This is good stuff! As you say it may not be completely bulletproof but I think it's as good as it gets.

 

[JohnLocke]

The method is "build it backwards", as this should explain. I'll refer to the following using the ficticious name "Acme". Where I mention "office lease" this is not the same as a virtual office - you actually get a legal valid lease, notarised, which proves the right to use the address

curious what are the costs for such service and where do you get this "office lease" ?

 

[tacokai]

This is how I have used WY and DE and UK together.

got confused, what entities are you using, can you shortlist?

 

[Patrick846]

This is how I have used WY and DE and UK together.

I don't understand why you need both WY and DE in your setup. Couldn't you have used only WY instead?

 

[netixone]

I don't understand why you need both WY and DE in your setup. Couldn't you have used only WY instead?

1) The WY is the front end. If it gets attacked, the rest of the structure is safe
2) The DE is the one with the EIN and bank account

 

[netixone]

got confused, what entities are you using, can you shortlist?

1) WY LLC: Public face. Holds no assets. Nothing to gain if it's attacked
2) DE LLC: Banking, EIN, invoicing
3) UK LLP: Remits funds legally from DE LLC
4) UK Ltd: Draws profits from the UK LLP - most paid is corporation tax at 20% as opposed to invidual rate at 40%. Also makes the LLP "single member" managed

 

[netixone]

curious what are the costs for such service and where do you get this "office lease" ?

DE 900USD per year
WY 600USD per year

Worth every penny, so to speak.

1) Proper office lease, with contract. This is a useful document when needed to prove residency. As they are both CMRA, online validation of identity is required.
2) Option of dedicated phone number with phone bill in LLC name

 

[netixone]

If I could just add a note, for anyone considering NM don't bother IMHO. I've had people think it's in Mexico itself, and other institutes not willing to deal. From my own dealings, NM LLC seems to be the bargain basement of LLCs and not well liked.

 

[Patrick846]

1) WY LLC: Public face. Holds no assets. Nothing to gain if it's attacked
2) DE LLC: Banking, EIN, invoicing
3) UK LLP: Remits funds legally from DE LLC
4) UK Ltd: Draws profits from the UK LLP - most paid is corporation tax at 20% as opposed to invidual rate at 40%. Also makes the LLP "single member" managed

If you are invoicing through the DE LLC, that will be the one attacked, not the WY LLC.
If you have an active business, yes it make sense to separate it from your passive assets. But you need to do all active activities through that same entity (including invoicing). If you start billing from DE for your WY activities, then you are commingling and piercing the company veil of the WY entity.

Usually, active entities can be open in any US state as the inside liability protection is the same everywhere. However you want that entity owned by a holding in WY or DE to get the charging order protection, to make sure that any outside liability issue (ie you getting sued personally) won't be able to propagate to your assets. In addition WY offers anonymity (DE needs to use a nominee).

 

[netixone]

If you are invoicing through the DE LLC, that will be the one attacked, not the WY LLC.
If you have an active business, yes it make sense to separate it from your passive assets. But you need to do all active activities through that same entity (including invoicing). If you start billing from DE for your WY activities, then you are commingling and piercing the company veil of the WY entity.

Usually, active entities can be open in any US state as the inside liability protection is the same everywhere. However you want that entity owned by a holding in WY or DE to get the charging order protection, to make sure that any outside liability issue (ie you getting sued personally) won't be able to propagate to your assets. In addition WY offers anonymity (DE needs to use a nominee).

Whatever I've setup works for me, but thanks for the additional info.

 

[DavidS]

How likely are these states to share information with EU?

Would these be good jurisdictions for EU persons?

And can US companies (Wyoming, Delaware, New Mexico) open accounts in non-US countries (Swiss accounts, Singapore accounts, etc...)?

 

[pesto]

Usually, active entities can be open in any US state as the inside liability protection is the same everywhere. However you want that entity owned by a holding in WY or DE to get the charging order protection, to make sure that any outside liability issue (ie you getting sued personally) won't be able to propagate to your assets. In addition WY offers anonymity (DE needs to use a nominee).

guess it requires a good lawyer to deal with the setup!