Best jurisdiction for Mobile App pubisher company (possibly Delaware)

[OffshorePhantom]

Hello,
first of all I want to say thanks to this awesome community, there is lot of value in the posts I have read on those forums.
I am here to ask advice for which is the best and cheapest jurisdiction to setup a company that publish app to Apple App Store and Google Play Store.
We are based in a EU high tax country (but plan to more abroad in the future) and have an app that generates through ads and subscriptions inside the app money.
We get paid by Apple, Google and other US companies for the ads we sell and the subscriptions.
We need a company which is accepted by Transferwise, since we use it daily and it is a very good banking system.
I was thinking about a Delaware LLC, but I am not sure since we get paid from US companies like Apple and Google and it may be considered US income, but it is an income obtained trough an IP (software) and I have read that it is not taxed in Delaware.
If we decide to open an LLC in Delaware, apart from filing some annual forms do we have to report annual returns and keep accounting?

Thank you very much!

 

[bkk]

Hello,
Have you finally moved forward with your project in Delaware?
We're thinking of transferring our mobile app to the US.

 

[OffshorePhantom]

Hello,
unfortunately not since I am not sure if we will receive payments from US companies like Google LLC and Apple Inc this would be an issue and considered as US-based source income.
I am free for a private talk to exchange some ideas if you want to reach me out in DM.
If someone else has some advice about the best setup for a mobile app it will be really helpful.

Thank you!

 

[Asterion]

Hello,
unfortunately not since I am not sure if we will receive payments from US companies like Google LLC and Apple Inc this would be an issue and considered as US-based source income.
I am free for a private talk to exchange some ideas if you want to reach me out in DM.
If someone else has some advice about the best setup for a mobile app it will be really helpful.

Thank you!

Hi!
Is that confirmed? I mean, the following:
1- you have an organisation dev account with Apple and Google
2- the organisation is a US LLC
3- the legal entity of Apple and Google that will deal with you contractually are the US branches of Apple and Google, because you use a US based company
4- you do all your work of running the business from outside the US, you are not a US citizen nor US resident
=
Your app revenue passed on by Apple/Google to your LLC is still considered US sourced income, so zero hope of being considered a non-resident alien and having zero tax?

I spoke an EU national from a similar community. He worked as a consultant from remote (say, IT development). He got contracted by a US entity who preferred to deal with a US entity. The guy then created his Delaware LLC, invoiced through it, got paid to it but because all of his work was done outside of the US, no US employees, goods, stock etc etc, his set up made him count as a non-resident alien, his LLC was a disregarded entity and passed through the income to him. So maybe there is hope...

 

[OffshorePhantom]

Hi!
Is that confirmed? I mean, the following:
1- you have an organisation dev account with Apple and Google
2- the organisation is a US LLC
3- the legal entity of Apple and Google that will deal with you contractually are the US branches of Apple and Google, because you use a US based company
4- you do all your work of running the business from outside the US, you are not a US citizen nor US resident
=
Your app revenue passed on by Apple/Google to your LLC is still considered US sourced income, so zero hope of being considered a non-resident alien and having zero tax?

I spoke an EU national from a similar community. He worked as a consultant from remote (say, IT development). He got contracted by a US entity who preferred to deal with a US entity. The guy then created his Delaware LLC, invoiced through it, got paid to it but because all of his work was done outside of the US, no US employees, goods, stock etc etc, his set up made him count as a non-resident alien, his LLC was a disregarded entity and passed through the income to him. So maybe there is hope...

Hi!
Yeah, that's the question I wanted to address but I am not sure. I know LLC are tax-transparent entities, the problem is that I do not really know how this cannot be seen as a US-sourced income by the IRS. If someone has insights about this please let us know.
If there is a better setup for app publishing companies I would be very glad to hear.

Thanks!

 

[Asterion]

Hi!
Yeah, that's the question I wanted to address but I am not sure. I know LLC are tax-transparent entities, the problem is that I do not really know how this cannot be seen as a US-sourced income by the IRS. If someone has insights about this please let us know.
If there is a better setup for app publishing companies I would be very glad to hear.

Thanks!

Talking to this guy gave me hope. But I need to find conclusive proof. I'm finding this whole thing really annoying, Apple and Google are really vague about practical details. Already understanding which one of their legal entities you'll be dealing with. Because if you could deal with their European branches from your US LLC, that'd be perfect I suppose.
Tempted to just write a post about it...

 

[OffshorePhantom]

As of my understanding, you deal with the branch where your company has been incorporated. For example with an EU entity you receive payments by Google Ireland, for a US-entity you will be automatically assigned to Google USA LLC I think, unfortunately.

As of my understanding, you deal with the branch where your company has been incorporated. For example with an EU entity you receive payments by Google Ireland, for a US-entity you will be automatically assigned to Google USA LLC I think, unfortunately.

 

[Asterion]

That's what I was told too. But as per the discussion with this guy, if all of your operation is from outside the US, you might still enjoy zero tax.
Otherwise, I was thinking about an anonymous US LLC (New Mexico, Wyoming) being the owner of an Estonian ÖU that publishes on the App Store and Google Play.