Countries to run an US LLC from?

[gnud]

Which countries are the best as a place of residence for a foreign US LLC owner?

Sure, many countries have POEM and PE rules, but I'm more interested in how is it reality.

 

[startfleetio]

UAE or other tax-free jurisdictions i guess?

 

[sabawolo]

UAE, Monaco, Costa Rica, and certain countries with a good territorial tax regime or with low personal income tax as long as the LLC is a pass through tax transparent entity. Romania for example has an income tax of only 10% for individuals but in general it would be better to form a company there and enjoy just 1% corporate income tax.

 

[TmeWalcO]

@sabawolo Would it be legal to run an US LLC from Romania and pay income tax on just what you pay to yourself? I think, if you were to be audited, they would demmand for you to form an SRL there, right?

 

[sabawolo]

I am not a tax consultant, you'd have to ask one.

 

[legrant]

@sabawolo Would it be legal to run an US LLC from Romania and pay income tax on just what you pay to yourself? I think, if you were to be audited, they would demmand for you to form an SRL there, right?

US LLCs are either taxed as C Corp (which pays US corporate tax) or they're passthrough. In your case, it'd be a pass-through entity so you'll have to pay all the companies profits as personal income in Romania. I repeat, ALL the profits, not just the ones you put in your personal bank account, you'll have to pay for everything, even if it stays in the company's bank accounts.

 

[Sols]

US LLCs are either taxed as C Corp (which pays US corporate tax) or they're passthrough. In your case, it'd be a pass-through entity so you'll have to pay all the companies profits as personal income in Romania. I repeat, ALL the profits, not just the ones you put in your personal bank account, you'll have to pay for everything, even if it stays in the company's bank accounts.

It's not necessarily quite that simple. What you've described is how the entity is treated in the US under US law. However, some jurisdictions don't recognise LLCs as pass-through and instead consider them taxable entities. For example, if you form a US LLC while resident in Canada, the LLC is taxed as corporation in Canada.

 

[legrant]

It's not necessarily quite that simple. What you've described is how the entity is treated in the US under US law. However, some jurisdictions don't recognise LLCs as pass-through and instead consider them taxable entities. For example, if you form a US LLC while resident in Canada, the LLC is taxed as corporation in Canada.

You're right. I was just describing how it's done in most countries but as you say there are some countries that apply different rules.