Cayman Corp with us llc

[Brianthedog]

Hey,

I’m a yacht charter broker, selling yachting vacations.

I want to open a company with maximum privacy and as little tax as possible, with a us bank account for us clients to be able to easily make payments. Privacy is the more important, I don’t want my name on any public records, for example, if my us company was sued, for my name not to be visible, just the caymans Corp.

This isn’t for evasion, but simply that I don’t want my current employer to find out I’m a competitor against them.

I’m thinking a Cayman Islands Corp for ease of bank accounts and paying less tax, and then having that corporation register a us llc.

I understand my name would be available to the bank and the us feds for the ein , but that those details remain private.

Any suggestions or advice? I’m new to this.

 

[poetwarrior]

I understand my name would be available to the bank and the us feds for the ein , but that those details remain private.

You are correct the information would only be available to the government on the US side and not the general public if you register the LLC in say Nevada. Obviously would also be available to the bank in the US for the LLC. if you have signature authority.

However, check on the Cayman Islands set up because I think in maybe January of this year the law changed and companies formed there will now require Economic Substance in the Cayman's like office, employees etc.
I am not sure of the details of this as I have not read the legislation, but look into it before you become committed to the Cayman's for your business to make sure it still works.

 

[TacitusKilgore]

You are correct the information would only be available to the government on the US side and not the general public if you register the LLC in say Nevada. Obviously would also be available to the bank in the US for the LLC. if you have signature authority.

However, check on the Cayman Islands set up because I think in maybe January of this year the law changed and companies formed there will now require Economic Substance in the Cayman's like office, employees etc.
I am not sure of the details of this as I have not read the legislation, but look into it before you become committed to the Cayman's for your business to make sure it still works.

Definitely agree with everything @poetwarrior has said here. OP, also look into a Seychelles company rather than Cayman corp but still use a US LLC for banking ability and an extra layer of privacy.

 

[Brianthedog]

Ok so I think caymans are out as it looks like the directors names are now public. If i went with a Belize IBC as the owner of the US LLC, would it harm the chances of the LLC having an easy bank opening process with a US bank?

 

[Brianthedog]

I´m a bit lost

Having done a bit more research, it seems owning an IBC in an offshore location, and having that own a US LLC will make it near impossible to open a bank account.

Has anyone done this before?

 

[Brianthedog]

I can´t work out how to edit my posts, so sorry for posting 3 posts in a row.

1. You are the sole shareholder and sole director of a Belize IBC,
2. The Belize IBC is the sole member of a Wyoming LLC, and
3. The Wyoming LLC has a US bank account.

Has anyone done this recently? I´m figuring I could open the wyoming LLC in my name, open the bank account, and then change ownership of the LLC to the IBC? This should make it simple to open the account without questions being asked regarding the IBC? Would this void the privacy that the IBC would provide, would I show as a historic member should the company ever be taken to court?

Or is it fairly simple to get a bank to open an account for a wyoming LLC owned by a belize IBC, as a non-american?

Any benefit to Anguilla over belize?

thanks guys.

 

[poetwarrior]

Belize changed legislation regarding their IBC's at the start of this year, the LLC legislation was not affected. However IMO it is a crap jurisdiction for a multitude of reasons at this point. I would advise looking elsewhere, others may have a different opinion. Look at the legislation and see if it will suite your needs should you go that route.

I have set up offshore LLC's with a Wyoming LLC with US bank account for the Wyoming LLC in the last 6 months. I would not say that it is easy but is possible. For a traditional bank you will need to travel to the US and physically go to the bank in order to set up the account. There are some ways to avoid the travel but you are essentially giving some US person access to your bank account. Others here may know some other way but I do not. You will need to provide KYC documents as well as the Offshore companies documentation, operating agreement, articles of organization, resolution to form Wyoming LLC etc. You will also need all of the documentation on the Wyoming LLC.
There is a non traditional bank called Mercury that claims to allow the US LLC to open remote. But I have not tried to use that bank and it is not a state chartered bank from my understanding. I am very interested if others have used the bank and got paypal etc with that bank.

The Wyoming LLC will need an EIN employer identification number to set up a bank account. In order to get this the responsible party must have a taxpayer identification number or a social security number to apply for the EIN.

Also be aware that legislation passed the US House of Representatives that if passed in the Senate and signed by the President would basically require States like Wyoming, Nevada, etc. to make public the Ultimate Beneficial Owners of the US based LLC or companies to the government and under certain circumstances foreign governments. The bill would not apply to the states but to the individuals and to the companies. Search for Corporate Transparency Act. Personally, I find it unlikely at this point that it will get the required votes for closure in the Senate for a vote to be taken, but it is possible. If the Closure vote passes currently it is possible that there are 3-4 Republicans that will defect (some have co sponsored similar bills) and the law would pass.

 

[Brianthedog]

Thanks poet warrior.

“In order to get this the responsible party must have a taxpayer identification number or a social security number to apply for the EIN.”

As I understand it, a non-us resident can open the account for the Wyoming llc, as long as the llc has the ein?

How long would you recommend my trip to the US is, to open the account for the LLC?

 

[Patrick846]

Opening a WY LLC and getting an EIN online will probably take a few weeks but can be as short as one week if everything goes well. I have opened multiple WY LLC and once in a while there is a glitch that slow the process down.

Opening a bank account can be done in an hour, but some banks may be reluctant or ask for more paperwork. It all depend from the banker and their local policy. Some bank will refuse to open account for out of state LLC, while other will do. So your best chance will be to go to WY to open it. But you could also do it in any other US state, you will probably have to shop for banks a little bit more.

Make sure that you have all your documents, including the operating agreement, proof of physical address for the business and you personal documents. As WY is anonymous, you will need to show on the operating agreement or other document that you are the manager and/or authorized to act on behalf of the company.

Last but not least, you can always ask a local CPA or lawyer to do it for you. They will charge you of course for it, but it may be cheaper than the trip.

 

[poetwarrior]

Thanks poet warrior.

“In order to get this the responsible party must have a taxpayer identification number or a social security number to apply for the EIN.”

As I understand it, a non-us resident can open the account for the Wyoming llc, as long as the llc has the ein?

How long would you recommend my trip to the US is, to open the account for the LLC?

The LLC can be done online and will take less than 48 Hours. Last one I did took less than 12 hours. Yes the Wyoming LLC can get an EIN but it must be applied for with someone that has either a Tax Payer ID number of an SSN. A foreigner can get a Tax Payer ID number but will need to apply for it. You need the EIN for the bank account.

I agree with what Patrick846 says completely.

When you choose a registered agent for your Wyoming LLC make sure they include a physical address in Wyoming for your business so that you can provide it to the bank. Most of them also have virtual offices that will scan mail etc. for your company.

If you have the Tax payer ID, company formation documents, and EIN, You should be able to get the bank account and wrap up everything in your trip in two weeks or less. You may have to shop around for banks that will take the company unless you travel to Wyoming.

 

[TacitusKilgore]

The LLC can be done online and will take less than 48 Hours. Last one I did took less than 12 hours. Yes the Wyoming LLC can get an EIN but it must be applied for with someone that has either a Tax Payer ID number of an SSN. A foreigner can get a Tax Payer ID number but will need to apply for it. You need the EIN for the bank account.

I agree with what Patrick846 says completely.

When you choose a registered agent for your Wyoming LLC make sure they include a physical address in Wyoming for your business so that you can provide it to the bank. Most of them also have virtual offices that will scan mail etc. for your company.

If you have the Tax payer ID, company formation documents, and EIN, You should be able to get the bank account and wrap up everything in your trip in two weeks or less. You may have to shop around for banks that will take the company unless you travel to Wyoming.

I applied for an EIN without tax payer ID - follow these steps: How to Apply for EIN (for your LLC) without an SSN or ITIN | LLC University®
Use an online fax service and they get back to you within a week or so.

 

[poetwarrior]

I applied for an EIN without tax payer ID - follow these steps: How to Apply for EIN (for your LLC) without an SSN or ITIN | LLC University®
Use an online fax service and they get back to you within a week or so.

That is interesting, tacituskilgore is correct. It is apparently possible to apply for an EIN without an SSN or ITIN. However you cannot apparently do this online but must go through either snail mail or fax. I looked at the regs and the instructions on the SS-4 and he is correct. It will take a little longer but looks like it will work. The instructions indicate that you simply leave the SSN or ITIN blank if you do not have that information or are ineligible for the number.

 

[TacitusKilgore]

That is interesting, tacituskilgore is correct. It is apparently possible to apply for an EIN without an SSN or ITIN. However you cannot apparently do this online but must go through either snail mail or fax. I looked at the regs and the instructions on the SS-4 and he is correct. It will take a little longer but looks like it will work. The instructions indicate that you simply leave the SSN or ITIN blank if you do not have that information or are ineligible for the number.

Correct it takes about a week because it's by fax rather than online. But you just put "foreign" in the ITIN field and the IRS is fine with it because they don't need your taxes if you're not a citizen!