Optimal Setup for a Digital Company

[lavel]

if I start to have some US-based customers for digital products/services, this could change things at the LLC level.

how is business?

 

[Fred]

You should consider to move to a 0% Personal Income Tax Country like Dubai or Panama - both jurisdictions have the Benefit that you have minimum stay requirements of 1 day every 6 Months in Dubai and 1 day every 3 Years in Panama.

Depending on your requirements you can go for a 0% Tax Panama Offshore Company or a US LLC - as you figured already yourself with US LLC things are not so clear when US clients coming even - even when people in practice still get away with it.

0% Tax Dubai Residence as Employee with a Salary and some local Substance like Utility Bill and local Personal Bank Account with either a US LLC or 0% Tax Panama Offshore Company is a perfect fit for what you looking for.

A lot of people are just living on EU Passport in some s**t hole in Asia or South America with US LLC an its working for them till its no longer working.

As you are from a EU Country with Aggressive Home Country Tax Authorities I would always go for Jurisdictions you can build more Substance or have more Substance already in place right away.

Think about future as well - investing or spending your Business Profits further - you can't open serious Investment Accounts for serious money with a Visa run every here and then in Thailand or Indonesia etc.

 

[Protect Your Wealth]

You should consider to move to a 0% Personal Income Tax Country like Dubai or Panama - both jurisdictions have the Benefit that you have minimum stay requirements of 1 day every 6 Months in Dubai and 1 day every 3 Years in Panama.

Depending on your requirements you can go for a 0% Tax Panama Offshore Company or a US LLC - as you figured already yourself with US LLC things are not so clear when US clients coming even - even when people in practice still get away with it.

0% Tax Dubai Residence as Employee with a Salary and some local Substance like Utility Bill and local Personal Bank Account with either a US LLC or 0% Tax Panama Offshore Company is a perfect fit for what you looking for.

A lot of people are just living on EU Passport in some s**t hole in Asia or South America with US LLC an its working for them till its no longer working.

As you are from a EU Country with Aggressive Home Country Tax Authorities I would always go for Jurisdictions you can build more Substance or have more Substance already in place right away.

Think about future as well - investing or spending your Business Profits further - you can't open serious Investment Accounts for serious money with a Visa run every here and then in Thailand or Indonesia etc.

This tbh ^
Also, Paraguay can be a thing because you get a tax certificate in a really short amount of time, however you still need to respect the requisites imposed by the French Tax Authorities.

You better move to a place where you can also take citizenship in the near future (Panama/Paraguay through naturalization).

 

[jayM]

relocate to a better country!

 

[dany]

Hello,

Today, I am reaching out to ask for advice on the best setup for a company that operates exclusively through international digital sales.

We are considering Delaware as a potential jurisdiction, and I have a few questions regarding this:

1. What documents are required to set up a company in Delaware?
2. Which agent would you recommend to assist with the company formation process in Delaware?
3. As a French citizen, do I have the right to establish a company in Delaware?
4. What would the tax rate be for a company primarily selling outside the USA, operating solely through digital sales, and with no American employees?

If I have overlooked any crucial details, please feel free to let me know.

Additionally, if you have suggestions for other locations that might be a better fit, I would greatly appreciate your input.

Thank you in advance for your responses

Delaware company with some sort of EMI banking for US companies may be the solution for you. I have no clue about which banking people are using for a US company these days.

Not sure if there are options on this list of EMI's and if they open accounts - https://www.offshorecorptalk.com/th...the-world-plus-a-bonus-challenger-bank.35959/

otherwise speak with @yngmind

 

[EliasIT]

Yes, as a French citizen you can form a Delaware LLC without issue. Use a reputable agent like Harvard Business Services or IncNow. For digital sales outside the U.S., the LLC is pass-through (no U.S. tax) if managed correctly, but get proper tax advice. Consider alternatives like Estonia, UAE, or Wyoming depending on banking and VAT needs.

 

[Koedam]

You should consider to move to a 0% Personal Income Tax Country like Dubai or Panama - both jurisdictions have the Benefit that you have minimum stay requirements of 1 day every 6 Months in Dubai and 1 day every 3 Years in Panama.

On what do you base that only 1 day in 3 years in Panama gives you a tax residence in Panama? To keep residency to live the requirements are very low, but for Tax residency the bar is much higher: 183 days or prove the tax authorities that you really liver there.

Here a lawyer from Panama who talks about the difference.

If a person isnt 183 days in the country, he should have a permanent home and prove material links to it. In many cases, the DGI requests for example tuition receipts from the children’s schools to prove that they study at national schools, that is, not only is having a real estate property in his or her name, but proving a link with it.

https://fmm.com.pa/tax-residence-in-the-republic-of-panama-2/

 

[Fred]

On what do you base that only 1 day in 3 years in Panama gives you a tax residence in Panama? To keep residency to live the requirements are very low, but for Tax residency the bar is much higher: 183 days or prove the tax authorities that you really liver there.

Here a lawyer from Panama who talks about the difference.

If a person isnt 183 days in the country, he should have a permanent home and prove material links to it. In many cases, the DGI requests for example tuition receipts from the children’s schools to prove that they study at national schools, that is, not only is having a real estate property in his or her name, but proving a link with it.

https://fmm.com.pa/tax-residence-in-the-republic-of-panama-2/

Haven't said anything about Tax Residency with 1 day stay every 3 Years - I mentioned that both - Dubai and Panama - are 0% Personal Income Tax Countries and to keep the Residence Visa active you have to be every 6 Months or every 2/3 Years for 1 day inside the Country - obviously that doesn't give you a Tax Residence Certificate and it's up to you to build Substance if that's what you want - some People just want to have a Residence Card, local Phone No. and a Utility Bill to open Bank Accounts either local or international or have already a fully fledged Tax Residence in place.

This topic has been discussed back and forth already here in the Forum - even back then with Dubai and when we did provide the service with DLS Dubai.

Still it's good you mentioned it so new people to this topic can take note of that point as well - sometimes if your are for too long already involved in the Offshore World you take some things as self explaining already.