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Wyoming LLC - What solution for bank and paypal to avoid reporting to my local authorities?

#21
Sols said:
It's unfortunately not quite that simple. You might want to start here and familiarize yourself with ECI: Effectively Connected Income (ECI) | Internal Revenue Service There are more articles and resources available that explain ECI a in even more depth.

Furthermore, an LLC is normally considered a pass-through entity which itself is not taxed. That means the profits of the LLC become your personal income, which further muddles the waters with regards to ECI.

Enforcement of ECI for small businesses is lax or non-existent. It's not on the IRS' radar to pick up on a few thousand bucks sold to US customers through a foreign-owned LLC. But unless US customers are going to be a significant revenue source, you can do what many businesses do and simply not allow US customers.
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yes other option is to use PayPal from another country but I need some paper to open business account or registered company. seems PayPal in us won't accept only EIN for registration
 
#22
You can sell to USA people as long as the 'service' is provided outside of USA.
Further more you mush not have 'significant' presence in USA , like people who work almost exclusively for you ...

So if you are not from USA , and provide digital service from outside of USA you are safe.

This is according to a few cpa who I talked to..
 
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#23
Admin said:
PayPal said, if you have a UK LTD you will need a UK UBO to apply for the account otherwise the account will not be fully verified and approved.
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Interesting: UK LTD company, bank account, registered address, PayPal business account & non-resident director

"So, I spoke to PayPal UK support today, and they state that there is no problem for a director of a UK company to be non-resident in the UK and to continue to manage the company PayPal account. You need to update your residential/home address with Companies House, and then do the same with your residential/home address held by PayPal."

Maybe they changed the rules?
 
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#24
mange38 said:
Maybe they changed the rules?
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If they have all is good, I will take this link to PayPal in my country and ask them to activate the UK PayPal account we have opened for some time ago but which they don't wanted to verify nor accept.

Thank you very much for this information, let's hope it will help. My fear is that they will say it is different from country to country, but lets see.
 
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#25
okay Will call PayPal and see that they say. For banking options tw and payoner don't accept my business. Did anybody try Mercury?

mange38 said:
Interesting: UK LTD company, bank account, registered address, PayPal business account & non-resident director

"So, I spoke to PayPal UK support today, and they state that there is no problem for a director of a UK company to be non-resident in the UK and to continue to manage the company PayPal account. You need to update your residential/home address with Companies House, and then do the same with your residential/home address held by PayPal."

Maybe they changed the rules?
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What exactly does this mean?

"You need to update your residential/home address with Companies House, and then do the same with your residential/home address held by PayPal."

I don't get what to update, I know PayPal is country specific and if you open a us account you can only add us address to it?
 
#26
ivan1911 said:
You can sell to USA people as long as the 'service' is provided outside of USA.
Further more you mush not have 'significant' presence in USA , like people who work almost exclusively for you ...

So if you are not from USA , and provide digital service from outside of USA you are safe.

This is according to a few cpa who I talked to..
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What if all your customers are US people and you hire 1000 part time US people to sell your products? You still owe 0 tax to the IRS?
 
#27
iloveyouguys said:
What if all your customers are US people and you hire 1000 part time US people to sell your products? You still owe 0 tax to the IRS?
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I think in that case you have 'significant' US presence and you will have to pay tax. You should check with certified CPA , I asked for my specific situation...
Further more a part of your operation is based in USA ... So I think there's slim chance you wouldn't get taxed.
 
#29
Admin said:
Wyoming LLC owned by an foreigner and then PayPal.... hmmm not sure if this is going to work. I have seen a UK Ltd owned by a non resident in the UK open an account with PayPal and that worked temporary but got shut down after a few months.
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It might be better to just open an account at Bank of America.. but that can't be done virtually. He would have to present an EIN number.
 
#30
tevalerie said:
It might be better to just open an account at Bank of America.. but that can't be done virtually. He would have to present an EIN number.
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okay, and why you quoted me?
 
#32
#34
Yes EU owners and shareholders, legit business no issues at all. But they are not from the UK so PayPal has limit the account!
 
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#35
Damn they are still doing this????
I agree it already happened to me in past with US LLCs and EU shareholders. They started doing this since maybe 2 years once OECD and EU started to clamp things. Try everything you can to not use paypal, at least not directly. They will limit the account or block the funds and ask for lots of papers... and it's going to take months to free the funds.
 
#36
I was told that paypal doesn't care much as long as montlhly amounts coming in at paypal / being transfered to a personal bank account do not exceed 9999 euro per month, as everything about 10.000 euro per month is reported. Is this information not correct ?
 
#37
unicorn said:
I was told that paypal doesn't care much as long as montlhly amounts coming in at paypal / being transfered to a personal bank account do not exceed 9999 euro per month, as everything about 10.000 euro per month is reported. Is this information not correct ?
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NO. Their algorithms are secret ane very complicated. Law requires report any suspicious transaction or balenc in amount from 1000 USD.

Admin said:
Yes EU owners and shareholders, legit business no issues at all. But they are not from the UK so PayPal has limit the account!
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PayPal limit US business account if you do not provide EIN for the company and SSN / ITIN for LLC members. If LLC is a single member LLC, it is declared as a sole proprietor. PayPal requires this person to have SSN or ITIN.
Non US residents who has never lived in the USA can not have SSN. It is possible to have ITIN. But it is not possible on a single member LLC. You need to have at least 2 members in LLC to be able obtain ITIN. More than 1 member in LLC is considered to be a partnership. If someone has in a partnership in US, is eligible for ITIN. But if you have another partner in LLC, PayPal will require ITIN for all members. Not a managing member, only. It is possible to go around, But it takes some time, effort and money..

tevalerie said:
It might be better to just open an account at Bank of America.. but that can't be done virtually. He would have to present an EIN number.
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BoA requires IEN for a company and SSN or ITIN for each LLC member. Each financial institution in the USA is required by the law to know it.
 
#38
onemansomewhere said:
PayPal limit US business account if you do not provide EIN for the company and SSN / ITIN for LLC members. If LLC is a single member LLC, it is declared as a sole proprietor. PayPal requires this person to have SSN or ITIN.
Non US residents who has never lived in the USA can not have SSN. It is possible to have ITIN. But it is not possible on a single member LLC. You need to have at least 2 members in LLC to be able obtain ITIN. More than 1 member in LLC is considered to be a partnership. If someone has in a partnership in US, is eligible for ITIN. But if you have another partner in LLC, PayPal will require ITIN for all members. Not a managing member, only. It is possible to go around, But it takes some time, effort and money..
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I wonder why you refer to the US when I talk about my experience with the UK? It makes absolutely no sense.
 
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