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UBO reporting to EU for LLC USA company

Btraveler

Btraveler

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Sep 19, 2019
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#1
Hello there team,

I'm EU citizen and I've been able to open a bank account for my LLC Wyoming USA company. I've been able to open the following with total success:

- Mercury Bank (USD Checking + USD Savings accounts)
- Transferwise (USD + EUR accounts)
- Payoneer (USD + EUR accounts)

I've also been able to obtain an EIN for the company. My questions are:

- The LLC is established in Wyoming. I'm the only unique owner, NON-US citizen, so the company is considered as a Disregarded entity (with foreign owner), as I've read in several news, forums, etc... As USA doesn't participate in CRS worldwide program (because USA only takes part of its own FACTA program), it's correct to say I won't be reported to my EU country as UBO off that bank accounts for tax purposes?

- As per that premises, how can I avoid to pay taxes on my revenue for the USA LLC Woming company? If I'm right, while I'll only be invoicing European customers (not selling nothing inside USA), I don't have to pay taxes about that income?

Many thanks in advance
 
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#2
Ask your FIs what, if any, reporting they do to IRS, and/or to EU countries. If response is none, then all clear.

Beware of your own reporting requirements to the IRS though, they do exist with serious penalties for mistakes or non-reporting. Also whatever you report there may find it's way back to the EU.
 
#3
Hmmm, I would never recommend using your own name for an offshore company. A nominee is priority number one when going offshore without moving his center of life to a tax haven jurisdiction.
As @Artemis Eleutheria said, you never know if a report may find it's way to the EU one day.
Check Frequently Asked Questions - FAQs - Country-by-Country Reporting | Internal Revenue Service
And the CbC Table : Country-by-Country Reporting Jurisdiction Status Table | Internal Revenue Service
If your Country is still "in negotiation" you won't get problems yet. However, you can escape all of this with a good Nominee structure.
However right now this may only occur after 750 mio € turnover, but I guess they will decrease this drastically whithn the next years!
So to be safe for the future, really get a nominee structure. You know how hard they fight for tax transparency. Lowering the treshold to 750k€ can be done quickly.

Also a nice read with a nice explanation video: Action 13 - OECD BEPS
 
Last edited:
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#4
Btraveler said:
- As per that premises, how can I avoid to pay taxes on my revenue for the USA LLC Woming company? If I'm right, while I'll only be invoicing European customers (not selling nothing inside USA), I don't have to pay taxes about that income?
Click to expand...

How did you end up in a situation where you setup a US company, opened accounts for it and now asking basic questions on tax you should have answers to before even going down that road :confused:. Do you buy a car and then find out later if its petrol or diesel it uses?...I just don't know some peoples logic.
 
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#5
Yeah, it's actually the wrong order, haha.
That's the reason why most of tax evaders end up paying back taxes. These are then the stories told in the news making everybody scared of going offshore.
Best are the people doing Belize companies, then invoice themselves and take out the amount via cash withdrawal from their local business account and hand in this invoice to accounting for this withdrawal :D :D :D .

However right now he still have a good chance to not be discovered with his setup. However I would really recommend @Btraveler to get a proper nominee setup. (Chosse your provider for this wisely as getting a bank account for a nominee structure is not so easy anymore compared to getting a bank account with real details.)
 
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#6
Btraveler said:
Hello there team,

I'm EU citizen and I've been able to open a bank account for my LLC Wyoming USA company. I've been able to open the following with total success:

- Mercury Bank (USD Checking + USD Savings accounts)
- Transferwise (USD + EUR accounts)
- Payoneer (USD + EUR accounts)

I've also been able to obtain an EIN for the company. My questions are:

- The LLC is established in Wyoming. I'm the only unique owner, NON-US citizen, so the company is considered as a Disregarded entity (with foreign owner), as I've read in several news, forums, etc... As USA doesn't participate in CRS worldwide program (because USA only takes part of its own FACTA program), it's correct to say I won't be reported to my EU country as UBO off that bank accounts for tax purposes?

- As per that premises, how can I avoid to pay taxes on my revenue for the USA LLC Woming company? If I'm right, while I'll only be invoicing European customers (not selling nothing inside USA), I don't have to pay taxes about that income?

Many thanks in advance
Click to expand...

It is true that you do not need to pay tax in the US, but US LLCs with foreign owners are not taxed in the US anyway, tax passes through the company to the end owner, being you. Theoretically speaking, you would need to report your LLCs income as your own and pay taxes in your home country. IRS will most likely not report you, but Transferwise, Mercury, Payoneer or any other bank/EMI might.
 
#7
Btraveler said:
- Mercury Bank (USD Checking + USD Savings accounts)
Click to expand...

btw is this the US company (mercury.co) you are using? If so why do you call it Mercury Bank? Or am I wrong and there is a real bank called "Mercury Bank" in US you are using?
 
#10
Yes, see Legal data on ths site:

Are my deposits FDIC insured?
Yes, your savings and checking accounts are both insured up to the FDIC limit. Mercury works with FDIC-insured banks, including BBVA, Member FDIC, and Evolve Bank & Trust, Member FDIC, to store your deposits. The banking provider for your Mercury account can be found by going to mercury.co/legal while logged into your Mercury account.
 
#11
Btraveler said:
Yes, see Legal data on ths site:

Are my deposits FDIC insured?
Yes, your savings and checking accounts are both insured up to the FDIC limit. Mercury works with FDIC-insured banks, including BBVA, Member FDIC, and Evolve Bank & Trust, Member FDIC, to store your deposits. The banking provider for your Mercury account can be found by going to mercury.co/legal while logged into your Mercury account.
Click to expand...

Where does mercury.co claim they are a bank? You called them "Mercury Bank". Do they have a US banking license YES or NO?

So you basically opened a US company without understanding first the tax implications and are on here asking fundamental questions on tax. Secondly you opened an account with mercrury.co and referred to them as "Mercury Bank" without checking if they are a bank.

P.S I don't mean to be rude
 
#12
Mark Rucken said:
Theoretically speaking, you would need to report your LLCs income as your own and pay taxes in your home country.
Click to expand...
It differs how countries view a US llc. Many countries will view it a (foreign) corporation, and then you should not report the income as your personal income. But your home country will likely view this foreign corporation as tax resident in your country, so you have to pay local corporate tax.
 
#13
Martin Everson said:
Where does mercury.co claim they are a bank? You called them "Mercury Bank". Do they have a US banking license YES or NO?

So you basically opened a US company without understanding first the tax implications and are on here asking fundamental questions on tax. Secondly you opened an account with mercrury.co and referred to them as "Mercury Bank" without checking if they are a bank.

P.S I don't mean to be rude
Click to expand...

But you are, very rude. Just because you know more than others you have no right to judge people. If you are not willing to help people, you should really stop posting, let alone quit being an Admin as you are of no use here.
 
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#15
Mark Rucken said:
But you are, very rude. Just because you know more than others you have no right to judge people. If you are not willing to help people, you should really stop posting, let alone quit being an Admin as you are of no use here.
Click to expand...

lol I stated facts but if that upsets you......oh well :rolleyes:. There is an "ignore" function if you hover over my name.....use it...lol thu&¤#.

P.S I am not an admin.
 
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#16
Hello there @Mark Rucken . Yes, I've opened some days ago and everything ok. Now I'm waiting to receive the visa card linked to the account. I plan to start using full features next weeks.

I have account with mercury + transferwise account and I think is the only I need for the USA LLC
 
#17
Martin is kinda rude but he is right, opening a company without having the basic info... This is a bit childish (i'm trying to be polite) - As mercury.co offers saving accounts, i let you dig into what it implies to invest in US bonds in the US as a non-resident in terms of reporting...
 
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#19
Btraveler said:
Hello there @Mark Rucken . Yes, I've opened some days ago and everything ok. Now I'm waiting to receive the visa card linked to the account. I plan to start using full features next weeks.

I have account with mercury + transferwise account and I think is the only I need for the USA LLC
Click to expand...
I have a similar structure with LLC in delaware and Transferwise, in the beginning
everithing was smooth, After few months they kept doing lot of questions and delayed ti let Money in and out from the account.
 
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