Delaware VS Seychelles

[zeeoffshore]

Hello,

I'm a non-US resident based in Beirut and I'm looking to set up an offshore company. The nature of the business is consultancy services targeting the Middle East and Africa region i.e. all our clients are outside the US and we won't have any business activity in the US. Which jurisdiction do you recommend in terms of cost, taxation, banking...., Delaware or Seychelles? What are the advantages and disadvantages of both jurisdictions?

Please advise.
Thank you!

 

[Clip]

US LLC
https://www.irs.gov/businesses/country-by-country-reporting-jurisdiction-status-table
IRS doesn't have agreements with Lebanon and it would be easier for you to do banking

 

[JohnSeed]

What taxes does people pay in Beirut that makes it necessary to setup a offshore company?

Seychelles is the cheapest setup one can do, starts at 650 euro.

 

[Luganese]

Seychelles is the cheapest setup one can do, starts at 650 euro.

Where I can register a Seychelles ?

I've read that registering Wyoming is just 395

 

[JohnSeed]

So go for the Wyoming LLC I don't believe there is a huge difference depending on what it is you want to use it for.

 

[zeeoffshore]

US LLC
https://www.irs.gov/businesses/country-by-country-reporting-jurisdiction-status-table
IRS doesn't have agreements with Lebanon and it would be easier for you to do banking

So you don't recommend Delaware for my case?

 

[zeeoffshore]

So go for the Wyoming LLC I don't believe there is a huge difference depending on what it is you want to use it for.

Why not Delaware?

 

[zeeoffshore]

What taxes does people pay in Beirut that makes it necessary to setup a offshore company?

Seychelles is the cheapest setup one can do, starts at 650 euro.

We pay corporate tax and payroll tax

 

[Clip]

Why not Delaware?

Cheaper and more privacy

 

[Stefano3323]

I would actually suggest Seychelles... Delaware or Wyoming you need to submit forms to IRS to put the company in order for taxes. If majority of your clients are outside US you will not have to pay taxes in US, but you will still need a tax advisor/accountant to ensure IRS receives the right documentations.

Setup cost is for sure cheaper in Wyoming or Delaware, but if you are looking at all the yearly costs... probably Seychelles will be cheaper.

 

[Sols]

The forms needed for US LLCs are easy to fill in. As long as you do the bare minimum accounting that's essential to run a business properly, don't think most people will need an accountant to help them out. But if you do need an accountant, it won't cost much if you just gather quotes and compare. If you go with a local boutique style accountant, Wyoming will probably be cheaper than Delaware.

Strictly speaking, the law in the Seychelles is that you need to maintain records much the same way a US LLC and you have far fewer options for accountants there, all of which work for incorporation service providers and law firms and tend to cost more. Most people don't bother following the Seychelles legal requirements, though.

 

[Clip]

Most people don't bother following the Seychelles legal requirements, though.

I agree but an IBC doesn't need to report, right?

 

[Sols]

I agree but an IBC doesn't need to report, right?

No need to file anything with the authorities, but you are required to do normal accounting and record keeping and your service provider should either have a copy of the books or know where they are, in case the authorities ever want to see them.

 

[JohnLocke]

Never seen anyone requesting anything that just look like accounting from the Seychelles! You can ignore that part totally and consider a Seychelles company not to file anything.

 

[Spinat]

What is the outcome of all of this discussion. Is Seychelles better compared to Delaware or is it the opposite.