So if someone opens a US LLC from Panama, there is no tax liability for the LLC income at all?
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- Thread starter banafinfodafuggiano
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It depends on what you will do with that LLC, but generally no, you will not pay taxes in Panama and you will not pay taxes in the US.
Better to contact a CPA in the US to do things properly.
Thank you for the update.
But in the event, somehow the home country finds out the existence of the US LLC, in that case will they ask me to pay tax? can they legally ask me to pay tax - provided they know of the US LLC.
Depending on your country of residency, if it's Panama they won't ask you anything in case they find out about your US LLC. If it's an European country then YES, they will ask you to pay taxes on all your foreign earned income (I wouldn't spend more than 183 days in any county that doesn't have a territorial tax system.)
Read from somebody who have lived in Panama and take your conclusions.
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This is apparently a common misconception. People think the country they grew up in will have them in their claws forever.
First thing here is that legally there is no such thing as "home country" , there is just country of citizenship, country of residency and sometimes country of domicile. By "home country" I assume you mean country of citizenship here.
If you are not a citizen of a country that taxes by citizenship, meaning the whole world except US and Eritrea, then you just need to get out of the tax net of your country of citizenship to no longer pay tax there. It doesnt matter that you keep the citizenship (except if you are a citizen of the US or Eritrea).
As to how to get out of the tax net, it depends from country to country, but typically it means moving out, not spending too much time in the country of citizenship, and not having ties in the country of citizenship like a house, family or a business.
So if neither US/Panama report to the home country it will work out. What about US banks? If I open a bank account under LLC, will the US bank report to home country? because I will be authorized signatory of the bank account etc.
I am planning to live in my home country throughout the year. But open a US LLC with Panama residency. Also open a US bank account under the LLC name. Will that work out?
US Banks typically will want to know where the owner of the LLC is legally resident. They might - but usually will not - report to this country. If you are not a resident of your "home country" they will not report to your home country.
Same thing with US and Panama authorities.
What if I establish a legal residence in Panama, then open a bank account for the LLC in US with that residence. Because I only need to visit Panama once in every 2 years to maintain the Panama residency (and live full time in the home country). will that work out?
If you open an account at a US bank with an US LLC, the bank will not report you to Panama, or to your home country (again, you pay taxes based on the laws of your country of residency, not in your country of citizenship, so you can forget about your "home country" unless you were born in the US.)
If you open a brokerage account with that LLC you will be subject to 30% withholding on dividends, 0% on Capital gains. If you open that brokerage account in your own name then they will withhold dividends based on the double tax treaty the US has with your country of residency (generally it's 15%)
You better make sure your home country doesn't find out you're staying in the country for more than 183 days per year, basically you have to live under the radar, literally.
No, if you live full time in your home country , your home country will consider you a tax resident there, regardless of you having residence permits elsewhere.
And assuming your home country is a high tax country, they most likely have rules like CFC meaning you have to pay local tax on your US LLC.
However, if your home country is like Burkina Faso, then yes it will work out.
And the US requires you to list all countries you are a tax resident in every year, so there you have to include your home country if you live there full time.
Then the US may or may not report to your home country.
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Ah that is a deal breaker then. In this case, US LLC is not the right structure then.
Man you are really looking through the wrong end of the telescope.
It's not the US LLC that is not the right structure, it's your current tax residency that you need to fix first.
Hello can you clarify if a company is registered today in uae, will it qualify for the small business exemption of 3 million AED turnover and pay no tax ? or is this facility for only existing companies that have been doing business in uae for a while ?
Hello,
It does not matter when a company is registered or will be registered. Same rules will apply for everyone.
What are your fees for UAE mainland company incorporation with bank account ? Is it possible to get a crypto friendly bank account like @Fred here has supposedly provided to many members on here in the past ?
The average Mainland incorporation is around 40k AED including everything, but this can vary depending on what exactly you will be needing.
In terms of crypto friendly banks, as per my knowledge there are none in the UAE so far but we do have some overseas banks in this case.
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