Tax-free Delaware entity

[StephB]

I'm not a us citizen and I would like to form a tax-free Delaware entity as sole owner, in order to conduct business online asap. The business nature is exclusively software sales ie. digital products.

1) Regarding the conditions to qualify as a Tax-Free llc, I will not have a “dependent agent”, but the “considerable, continuous, and regular” clause remains a bit vague to me. I’m wondering if Id be considered as engaging in US Trade or Business and be subject to taxation selling software online.

2) I’ll need to setup a bank account. I will not be able to travel to the States in order to do so. I have an old llc that hasn't been in compliance for ages, so the BOA account I opened for it at the time is unusable.
Any suggestion with regards to online banks where I could open an account for the new llc that would hopefully be linkable to Paypal...

3) I’m worried about the BOI (Beneficial Ownership Information reporting) form that I'll have to fill beginning of 2024. I’m not sure what it entails, but is there any risk to be traced back by my local IRS? that would pretty much defeat the whole purpose of forming an llc abroad…

thx for any feedback

 

[bibing]

About point #3. You are a citizen of which country?

 

[catslover]

About point #3. You are a citizen of which country?

How to know what countries will exchange the info?

 

[Rome]

I'm not a us citizen and I would like to form a tax-free Delaware entity as sole owner, in order to conduct business online asap. The business nature is exclusively software sales ie. digital products.

1) Regarding the conditions to qualify as a Tax-Free llc, I will not have a “dependent agent”, but the “considerable, continuous, and regular” clause remains a bit vague to me. I’m wondering if Id be considered as engaging in US Trade or Business and be subject to taxation selling software online.

2) I’ll need to setup a bank account. I will not be able to travel to the States in order to do so. I have an old llc that hasn't been in compliance for ages, so the BOA account I opened for it at the time is unusable.
Any suggestion with regards to online banks where I could open an account for the new llc that would hopefully be linkable to Paypal...

3) I’m worried about the BOI (Beneficial Ownership Information reporting) form that I'll have to fill beginning of 2024. I’m not sure what it entails, but is there any risk to be traced back by my local IRS? that would pretty much defeat the whole purpose of forming an llc abroad…

thx for any feedback

"is there any risk to be traced back by my local IRS? that would pretty much defeat the whole purpose of forming an llc abroad"

To be clear, what you are asking for here is not tax avoidance. It's evasion.

 

[bibing]

How to know what countries will exchange the info?

Foreign Account Tax Compliance Act

FATCA requires foreign financial institutions (FFIs) to report to the IRS information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. FFIs are encouraged to either directly register with the IRS to comply with...

home.treasury.gov

Pretty much any country under this list.

Find your country and look under the column Jurisdiction Status Intergovernmental Agreement (IGA) & Related Agreements, Arrangements, or Correction.

Check if your country is Model 1 or Model 2.

If it's Model 2 you are kind of safe of not being reported to your home country by the IRS.
If It's Model 1 you are pretty much fuc**d (I'm in a Model 1 country so I'm too)

Are there any differences between Model 1 and 2 IGAs?
Yes. One of the most significant ones is that Model 2 IGAs are never reciprocal but Model 1 IGAs can be. You would need to check the exact agreement between your country and the US Government.

Don't trust info written by other illiterate retards (there are many) on this forum that tell you otherwise.