Hello everyone, I have read many threads on this topic but never found the specific answer so I decided to create this thread because I think it can be helpful to many.
I would like to ask a question regarding this setup. I did a consulting with international tax planner.
Business model: B2C - Educational Ebooks
Customers Location: USA / CA / NZ / UK / AU
Setup:
- UAE resident manager (No US Resident)
- UAE Free Zone company
- US LLC Wyoming Operating Company for Payment Processing (Same Manager As UAE Company)
US LLC not engaged with a trade or business in the US (No Office/Employee/Warehouse)
What I have been advised is to create a share agreement from the LLC to the UAE Company.
My question is: Why can't I simply keep the money in the US bank accounts since it is considered a pass through to the owner (who is UAE resident and not US Citizen)? What am I missing?
P.S: I'm NOT trying to avoid the 9% - I just want to genuinely understand how to do things right! Thanks!
I would like to ask a question regarding this setup. I did a consulting with international tax planner.
Business model: B2C - Educational Ebooks
Customers Location: USA / CA / NZ / UK / AU
Setup:
- UAE resident manager (No US Resident)
- UAE Free Zone company
- US LLC Wyoming Operating Company for Payment Processing (Same Manager As UAE Company)
US LLC not engaged with a trade or business in the US (No Office/Employee/Warehouse)
What I have been advised is to create a share agreement from the LLC to the UAE Company.
My question is: Why can't I simply keep the money in the US bank accounts since it is considered a pass through to the owner (who is UAE resident and not US Citizen)? What am I missing?
P.S: I'm NOT trying to avoid the 9% - I just want to genuinely understand how to do things right! Thanks!