Best Company Set up for Digital Nomad + Ecommerce?

[Cryptohodler]

And from next year it's dead. Well, actually for 150-200k, it would still work.
Invoicing the US LLC from the UAE company may not be necessary, potentially not even advisable, as the US LLC would probably have to file corporate tax returns in the UAE anyway.

Right, he would be better off just receiving dividends from the US pass through and declaring this as income.He might still be able to use the small business exemption for freelancers to pay zero tax. Or just invoice the French nationals via the UAE company and use the 3 million AED small business exemption.
I don't know, please tell me if a newly incorporated uae company can avail of the small business exemption till dec 2026 ?

 

[JustAnotherNomad]

Right, he would be better off just receiving dividends from the US pass through and declaring this as income.

A pass-through entity can't distribute dividends.
The US LLC would likely have to register for corporate tax in the UAE / set up a UAE branch.

I don't know, please tell me if a newly incorporated uae company can avail of the small business exemption till dec 2026 ?

No idea, but probably yes.

 

[Doji]

US LLC pays zero corporate tax?

what about UK LLP/LTD are they also corporate tax exempt if the director is a non UK resident?



Thailand and Uruguay for personal residency sound interestng.

US LLC as a passthrough entity is troublesome if you're doing eCommerce outside of Amazon. Since you have no SSN, you have trouble getting bank accounts (you can get a Mercury bank account, but tough luck if they reject you). Even getting a PayPal account is awfully time-consuming since you need a TIN. Shopify Payments is also inaccessible. Just something to be aware of.

 

[FantomOffshore]

I earn $150,000-200,000 a year with my online brand,
how and where would you set up a company + bank to minimise tax close to zero?

Consider that I can move almost anywhere since my business is 100% online and
I'm a strong passport holder (Spanish + Canadian).

I want to pay as close to zero: corporate and income tax but at the same
time I have to incorporate in a serious jurisdiction since the payment gateway (Stripe)
takes this matter seriously.

Close to home consider Andorra.

 

[AtMo]

US LLC as a passthrough entity is troublesome if you're doing eCommerce outside of Amazon. Since you have no SSN, you have trouble getting bank accounts (you can get a Mercury bank account, but tough luck if they reject you). Even getting a PayPal account is awfully time-consuming since you need a TIN. Shopify Payments is also inaccessible. Just something to be aware of.

What about UK LLP with banking? could that be easier than a US LLC? I could accept a EMI as well.

 

[Ancova]

Greetings,

With those profits, definitely a tax residency in Dubai since you can qualify for the 0% Tax since you will have expenses that can be deducted from your profits. Alternatively, if you happen to earn more, you can open a US LLC easily after you get your UAE Tax residency certificate (no you do not need to stay 90 days a year in Dubai to get that).

 

[thomasparra]

Greetings,

With those profits, definitely a tax residency in Dubai since you can qualify for the 0% Tax since you will have expenses that can be deducted from your profits. Alternatively, if you happen to earn more, you can open a US LLC easily after you get your UAE Tax residency certificate (no you do not need to stay 90 days a year in Dubai to get that).

What are the requirements to get the tax certificate then?

 

[Ancova]

What are the requirements to get the tax certificate then?

In order for us to organize a tax certificate for someone, that person only needs a UAE Resident Visa - which means that you come once or twice a year (depending on which visa you have)

 

[blizz]

You want to consult @Fred for such service to avoid troubles.

 

[Cloudbanck]

Greetings,

With those profits, definitely a tax residency in Dubai since you can qualify for the 0% Tax since you will have expenses that can be deducted from your profits. Alternatively, if you happen to earn more, you can open a US LLC easily after you get your UAE Tax residency certificate (no you do not need to stay 90 days a year in Dubai to get that).

You don't need a tax residency certificate to open a US LLC, but you do need to tell US authorities every year where you are a tax resident.

If you are asked to show that you are a tax resident where say you are a tax resident - something that almost never happens - a tax residency certificate might be useful but it's just one piece of evidence among others. Many countries don't even issue tax residency certificates.

 

[Jbb1]

You want to consult @Fred for such service to avoid troubles.

Fred is no longer in business for company formation, only for consultancy.

 

[Ancova]

You don't need a tax residency certificate to open a US LLC, but you do need to tell US authorities every year where you are a tax resident.

If you are asked to show that you are a tax resident where say you are a tax resident - something that almost never happens - a tax residency certificate might be useful but it's just one piece of evidence among others. Many countries don't even issue tax residency certificates.

You are right, however we always want to protect our clients from anything unexpected. Should it happen that the US LLC asked for the Tax Certificate, the person would already have it and its only a one time cost of around $1,000 so is more or less a no brainer to get it then.

 

[thomasparra]

In order for us to organize a tax certificate for someone, that person only needs a UAE Resident Visa - which means that you come once or twice a year (depending on which visa you have)

Are you referring to the tax residency of a UAE company or/and individual? From my limited knowledge, to be a tax resident in UAE (as an individual) you need to fill any of the three criteria:

• usual or principal place of residence is in the uae as well as the center of financial and personal interests
• stay 183 days in a 12 month rolling period
• stay 90 days in a 12 month rolling period: BUT the individual needs to a) be a UAE citizen/resident or c) permanent place of residence in UAE or d) carries out the business or employment in UAE

There are the official guidelines based on the new clarification from the tax authorities. It seems hard to be qualified for less than 90 days, unless you own (or rent?) a place of residence for yourself.

 

[Ancova]

Are you referring to the tax residency of a UAE company or/and individual? From my limited knowledge, to be a tax resident in UAE (as an individual) you need to fill any of the three criteria:

• usual or principal place of residence is in the uae as well as the center of financial and personal interests
• stay 183 days in a 12 month rolling period
• stay 90 days in a 12 month rolling period: BUT the individual needs to a) be a UAE citizen/resident or c) permanent place of residence in UAE or d) carries out the business or employment in UAE

There are the official guidelines based on the new clarification from the tax authorities. It seems hard to be qualified for less than 90 days, unless you own (or rent?) a place of residence for yourself.

I am referring to individuals employed by their own companies. The points you have mentioned are 100% correct, however we offer that service where you only need to have a UAE Resident Visa and still get the certificate even without staying 90 days here.

 

[Marzio]

How about a US LLC, and residency in Paraguay

I would suggest Panama instead of Paraguay because it requires to visit once every 2 years to maintain residency.

 

[JustAnotherNomad]

I would suggest Panama instead of Paraguay because it requires to visit once every 2 years to maintain residency.

I think Paraguay is minimum one day visit every 10 years.

 

[Marzio]

I think Paraguay is minimum one day visit every 10 years.

So lets stick with Paraguay then LOL

 

[Cloudbanck]

I think Paraguay is minimum one day visit every 10 years.

And Paraguay is much easier to get residence in. For Panama they recently made it more difficult, now you have to buy a property or mess with setting up a local business.

 

[humus]

So, if I open a US LLC, with residency in Panama/Paraguay, will my home country still require me to pay tax on income from LLC? and also will US report to my home country? because my passport will be issued from my home country- as I dont suppose Panama/paraguay will give me a passport. but only residency.

So lets stick with Paraguay then LOL

 

[Radko]

So, if I open a US LLC, with residency in Panama/Paraguay, will my home country still require me to pay tax on income from LLC? and also will US report to my home country? because my passport will be issued from my home country- as I dont suppose Panama/paraguay will give me a passport. but only residency.

You pay taxes in your country of residency, unless that country has no taxes on foreign income, such as Panama.

And if you have an LLC then the IRS will not report under FATCA (the IRS doesn't report based on your citizenship.)