Mercury requires US Operations

[Forester]

Thanks all for you help.

You are welcome.

Maybe just accepting cheap gigs

What do you mean by this? I admit I do not understand well...

or re hiring freelancers in US will avoid this issue?

This will work, definitely; just be advised that in such a case you will be liable to US federal tax, as being ETBUS.

Or something like my reciped from Open AI, Google, Apple, and GoDaddy would be enogh? they are services that I hire for real for my production work.

Well, it might work, as discussed above. Especially – IMO – with GoDaddy as it is typically US company. At least, worth trying; if you try this, sharing your experience here would be much appreciated.

How about switching to a multi member LLC by e.g. having your spouse or family member or someone own 1% ?
Then the LLC will be a US person, and I think Mercury is much more lenient.

I am afraid this will not help; Mercury (et al.) claim clearly that they ask for US operations.

There will be different forms to file but it's still disregarded, so no US tax.

Sure but see above...

 

[cani]

How about switching to a multi member LLC by e.g. having your spouse or family member or someone own 1% ?
Then the LLC will be a US person, and I think Mercury is much more lenient. There will be different forms to file but it's still disregarded, so no US tax.

Thanks I have the LLC under two persons already, but both no US residents. It changes the equation in some way? Thanks again.

 

[Cloudbanck]

I am afraid this will not help; Mercury (et al.) claim clearly that they ask for US operations.

They ask it for a single member US LLC yes, which is not a US person. So a non-US person with no operations in the US - thats what they dont want.

But are you sure they dont accept a US person (i.e. multi member LLC) selling to outside the US? I havent checked myself, but wouldnt be suprised if they dont ask for US operations in this case.

Note that a multi member LLC files a W-9 , whereas the owner of a non-resident single member LLC files a W-8BEN. So, legally it's very different.

 

[Forester]

They ask it for a single member US LLC yes, which is not a US person. So a non-US person with no operations in the US - thats what they dont want.

Well, as @cani already has a multi member LLC and need not to bother with its establishing, it is probably worth asking Mercury about their position. It costs nothing and will yield an interesting result in every case.

But are you sure they dont accept a US person (i.e. multi member LLC) selling to outside the US? I havent checked myself, but wouldnt be suprised if they dont ask for US operations in this case.

No, I am in no way sure, as I have not tried. I am just guessing and my guess is simply complementary/opposite to yours
I am building it on the fact that from the economical point of view, the difference between the one- and multi-member LLC is negligible. Yet it is true that legally and politically it is different, as you point at below.

Note that a multi member LLC files a W-9 , whereas the owner of a non-resident single member LLC files a W-8BEN. So, legally it's very different.

 

[Why]

How about switching to a multi member LLC by e.g. having your spouse or family member or someone own 1% ?
Then the LLC will be a US person, and I think Mercury is much more lenient. There will be different forms to file but it's still disregarded, so no US tax.

Would still need a member of the LLC to be US based, which may indeed complicate the taxes as I don't know if it would be disregarded anymore