EU company + US LLC for anonymity?

[John Andrews]

I would like to register a New Mexico LLC which would be 100% owned by my existing EU company.

The LLC would be used to accept payments on behalf of my online business (Stripe, BitPay and perhaps Paypal). This way if someone googles my EU company they wouldn't be able to figure out what is it that I'm selling and vice versa, if they were to google the US LLC, they wouldn't be able to find out who's behind it.

Finally, for what it's worth, I would get the reputation of USA instead of Eastern Europe, as that's where my EU company is incorporated.

Does this make sense? Is this doable in regards to IRS (will the LLC still have pass through status if its owned by a legal entity)?

 

[Sols]

Under the 5th AML Directive, now transposed and being implemented across the EU, EU member states are required to establish UBO registers. So even if your US LLC would appear as the sole shareholder, you would still appear as the UBO of the structure. It's not entirely clear how each and every UBO register will be designed and to what degree it will be public, but EU regulators are a few years ahead of your plans here, I'm afraid.

Adding a US LLC into an EU structure is going to limit your banking and payment processing options somewhat, since the whole entity goes from zero to full FATCA scope and becomes subject to other US laws.

 

[John Andrews]

Under the 5th AML Directive, now transposed and being implemented across the EU, EU member states are required to establish UBO registers. So even if your US LLC would appear as the sole shareholder, you would still appear as the UBO of the structure. It's not entirely clear how each and every UBO register will be designed and to what degree it will be public, but EU regulators are a few years ahead of your plans here, I'm afraid.

I think you misunderstood my question.

The EU company would own the US LLC, not the other way around. It would be used purely as a HoldCo, while the US LLC would be used to accept payments.

 

[Sols]

I did indeed misread. I'm not sure I understand the point of the structure. You'll have the usual problems of non-resident ownership of US LLC (tax resident where you live, limited but not impossible banking options) and a holding company for unclear benefits.

In terms of banking and payment processing, a resident EU company without US involvement is viewed far more favourably than a non-resident US LLC in nearly every circumstance.

As for the IRS, they probably won't have much to say about it. Not really any different between a natural person or a legal person being the single member of a single-member LLC.

 

[John Andrews]

I'm not sure I understand the point of the structure.

Anonymity, since the US doesn't have a UBO register. If someone were to look up the US LLC, they wouldn't be able to find out anything about it.

 

[Sols]

Anonymity, since the US doesn't have a UBO register. If someone were to look up the US LLC, they wouldn't be able to find out anything about it.

That explain the US company. It doesn't explain the EU holding company.

 

[John Andrews]

It doesn't explain the EU holding company.

I use it to invest in crypto, rent an office (apartment), pay for all kinds of stuff so I get VAT back every month. It's also where I'm employed.

 

[boomy]

I use it to invest in crypto, rent an office (apartment), pay for all kinds of stuff so I get VAT back every month. It's also where I'm employed.

That can work, actually I do the same. But I'm not under investigation so everything looks to work out well for me

 

[Corno]

I considered something similar, too. Right now, I am a sole entrepreneur in a very nosy EU country, so to hide my identity from Google and customers, I am thinking about registering a New Mexico LLC and use it to accept payments and do a few other things on my behalf via a trust agreement between myself and the LLC. My business is legal, I am paying all my taxes, I just don't want people to find out all my private details or see my different projects that don't have anything to do with each other (might compromise trust). So basically the same thing you are planning to do, just that I would own the LLC directly, not via another company.

 

[boomy]

If you setup a company in the EU you will have to publish who the real owner of the company is. If it is owned by a US LLC I believe the rules are the same. Means, you won't get any anonymity for your EU entity.

 

[Corno]

If you setup a company in the EU you will have to publish who the real owner of the company is. If it is owned by a US LLC I believe the rules are the same. Means, you won't get any anonymity for your EU entity.

OP wants to establish an LLC that is owned by his existing EU company (not the other way around). Then he wants to use this LLC as a privacy shield towards Google and customers, e.g. the customers interact with his anonymous LLC which has a contract with his EU company that it acts in its own name but on the EU company's behalf. Like this, the customer sends payments to the US LLC and interacts with it, but he can't figure out the owner. All money will be transferred to the EU company then behind the scenes due to the contract. If someone searches for the EU company, they will find out the real owner, but why should they since they have no business with the EU company and never heard of it.

I want to do exactly the same, but as sole entrepreneur. Reasons are not privacy towards the tax office but towards customers and search engines.

 

[kengan]

this is interesting. if you dont mind can you share where you incorporated in EU? I see you will use PP, is this for LLC? if true please double check as i see other having problem open PP account in US as non resident

 

[Risehigh]

I will join this talk sounds interesting for me aswe