Delaware LLC setup - tax delay

[liquidtension]

Hello,

I'm from Poland and have Delaware LLC for software projects, working with US based company. LLC has Mercury bank account. Initially, my idea for a setup was to hide ownership with Wyoming LLC, not so sure anymore that could help.

My questions:

1. Is there a way for me to delay personal income tax, like by re-investing on the stock market, bonds etc. ? Or any other ideas?
2. Do you think that using regularly bank card (via Google wallet) could be somehow shared with local tax authorities to find identity behind the LLC?

Many thanks in advice, I'm open for any suggestions that would help me optimize the idea.

 

[ivan1911]

In most European countries you need to declare that you own foreign company or else you are in some sort of violation..
If you buy crypto you will need to disclose that in your 5472 form with the IRS. It wildly depends on your home country if you can leave the profits on your Mercury and not pay any tax..
Further more connecting your card with Google and apple pay is from what I understand fairly anonymous way to spend money as both hide numbers of your credit card so others can't track it . Is it smart to spend money on groceries and such with company card that's another question.. which i don't have answer to..

 

[Marzio]

I'm open for any suggestions that would help me optimize the idea.

US LLC + Polish IP Box is everything you need to know.

 

[CyprusLawyer101]

Generally you could defer taxes by not distributing the profits from the company to you. However you should check with Polish legislation how the US LLC's are treated as they may be regarded as pass through entities in which case you are automatically subject to tax on thr income earned. Also how you have elected the LLC to be treated in the US through "check the box" might be relevant. Polish CFC rules may also be relevant here.

 

[Marzio]

However you should check with Polish legislation how the US LLC's are treated

Transparent

 

[CyprusLawyer101]

Transparent

Okay...so I guess no real deferrement of taxes can be achieved - taxes appear to be already due.

 

[Jerry1911]

Transparent

Any idea as to what needs to be done from the position of a Polish tax resident upon registration of a US LLC?

i.e. what are the obligations towards the Polish tax authority?

 

[liquidtension]

US LLC + Polish IP Box is everything you need to know.

US LLC + Polish IP Box is everything you need to know.

Please elaborate.

IP Box is also checked by tax authorities - they need to confirm you have been doing described work for particular employer. And if they cant - they will fine you after few years from getting IP Box money back (you pay both the amount and fines). So its not that straightforward for me working mainly with US based companies.

 

[Marzio]

what are the obligations towards the Polish tax authority?

PIT payment but no social contribution.

 

[clemens]

2. Do you think that using regularly bank card (via Google wallet) could be somehow shared with local tax authorities to find identity behind the LLC?

To get ideas better than what you find here I would take this to the mentor group gold forums. That's where it would belong.

 

[Marzio]

IP Box is also checked by tax authorities - they need to confirm you have been doing described work for particular employer

If what you do can qualify for IP box (in the article i linked before there's a short list of activities considered R&D) before doing any work you need a lawyer specialized in IP Box and request a ruling.

It will cost couple thounds euros max and if the answer is positive you'll pay 5% tax total.

If not, well you will pay 19% tax total that's not bad either.

In any case don't do aything stupid like hiding money in a US bank hoping that Poland will not find out.

In the end they will and in the meantime you will lose sleep.