Please urgent advice needed - US LLC NM - FR

[kyzeur]

Dear Forum,

I really need advice here as i started to be really under pressure by time:

Business : Website selling enrollment fees to sell Sports forecast/odds/advice, The website is under construction and will be in .com
Customers: EU
Steps : Here the troubles come, i'm a French National. Before a long period of hesitation between UK LLC or New Mexico LLC i decided to open a New Mexico LLC because of low taxes , no annuals reports etc....

Payment gateway: I reached Stripe it seems that they are OK she told me, some concurrent (DavPronos – Just another WordPress site etc..) work with them too but they have French Company, so in my case i think when they will find out US Non Resident LLC they will step back. 95% of all the competitors use Klik&Pay (they meet some troubles by regulator but it seems that all issues are fixed)
Don't know if it will be a problem to open with them too will see.

Legal set-up: 90% of Competitors have a Free Dubai zones entity with 0 Tax , this set-up cost 3000Eur and i Can't afford that for the moment but will open it as soon as the cash flow come. A Huge competitor (AlexBettingUk - Le meilleur des pronostics foot, tennis, basket et E-Sport!) have a UK LLC and i dont know his set up regarding banking ?

Bank : I've reached Mercury they say they dont support such activities even if no bet will be allowed under the website.
support of Transferwise said me they are not sure but try. try for what see funds freezes Lol

Questions: The business Model is customers come to the website take the package pay with debit card under Klik&Pay or others. they hold funds they forward it to business Bank account

Could you please help me to find a Online bank where i will be able to open a bank account considering the fact that i'm French, have US LLC, customers EU and sell sports odds as mercury turned down and transferwise too ?

Does i have to end up opening a UK LLC and which set-up can i have as banking Business Account online ?

Any others suggestions ?

I don't have a huge budget for the first legal set-up and really want low taxes.

Thank you so much for Help.

 

[kyzeur]

I Know that Moderator love Cyprus LLC. 1200EUR is also a lot for me

 

[SaintVince]

Interested in this as well.
let’s brainstorm together.
would be interesting to find out the set up

 

[kyzeur]

Hey SaintVince Pm is you want

Please any help guys ? it will help a lot

 

[curiousmarv]

Throw that whole setup into the trashcan if you really live in France. A US LLC is 90% sure tax transparent to yourself (in France) and what you want to do is with your explained setup is a tax crime within France. Did you researched yourself this setup or did a professional recommended that to you?

Grow normally within France and when you can afford easily a few thousand Euros think about tax optimization!

 

[kyzeur]

A professional recommend it to me. In fact the plan was to be reliable to the us regarding Business, corporation tax etc.. and use the Business Card for expenses.

So the better option will be to Set up a Uk LLC as it is more clause and have lot of opportunities to setup a bank account ?

Then pay VAT and Corporation tax and avoid all these noise ?

Do you have any reputable Online banking or physical banking solution for me ? for UK LLC ?

My ideal goal was to let the money on the business banking account and use the Debit Car of the business and never made transfers to my personal account in France.

Sorry for the moderator i am not spamming i am really in trouble.

Can i add something : I have also dual nationality with morocco, but on my national moroccan Id , the address of residence if a French one

 

[John Andrews]

Dude first of all just because a "professional" recommended it doesn't mean it's a good solution. There are lots of companies selling "offshore setups" which are basically illegal in 2020.

A US LLC will be considered as tax transparent by the French tax authorities. This means all income will be taxed as a salary. You mentioned UK LLC as well. UK doesn't have LLCs, they have limited companies (Ltd). These are tax resident in the UK on registration, however the French taxman will deem it resident in France as well as you don't have any substance in the UK.

You can either move out or set up a French company.

 

[JohnLocke]

OP - next time take of Caps Lock in the thread title, there is no reason for use capital letters, people will read your thread if they find any interest.

 

[bnpsu]

You mentioned Stripe, what makes you think they will step back when they will find out you are a US Non Resident LLC?

 

[John Andrews]

You mentioned Stripe, what makes you think they will step back when they will find out you are a US Non Resident LLC?

They have already started closing account just like PayPal

 

[Sols]

Dude first of all just because a "professional" recommended it doesn't mean it's a good solution. There are lots of companies selling "offshore setups" which are basically illegal in 2020.

A US LLC will be considered as tax transparent by the French tax authorities. This means all income will be taxed as a salary. You mentioned UK LLC as well. UK doesn't have LLCs, they have limited companies (Ltd). These are tax resident in the UK on registration, however the French taxman will deem it resident in France as well as you don't have any substance in the UK.

You can either move out or set up a French company.

This is all the information needed. Don't waste your time with offshore or US for something like this, @kyzeur. Even if you manage to piece something together, it's not sustainable. Incorporate in France or leave France for a tax haven. Assuming you're an EU national, Malta and Cyprus are some of the easiest to move to for a heavily reduced (but not zero) tax rate.

The only thing I would add is that in some unfortunate cases, LLCs are not honored as tax transparent (or even viewed as an LP/LLP/GP equivalent) by a person's home jurisdiction. So you can end up with corporate income tax as well; not just salary. I don't know about France in particular and if @mange38 does, the post above is probably all-encompassing.

 

[kyzeur]

Dear members , Thank you for your time.

@bnpsu To reply to you , I've talked to a Commercial representative regarding Stripe saying i will not risk to choose you as payment gateway if you close my account . She said me by writing prove that they will not close account anymore if i only stick to sports advice and not promote any broker betting site

@mange38 The thing is that you are right , for being a French Citizen i could tell you that our Tax office are very very very very talented and internationally in addition. From far i know they can call you back long years after. the fact is that could i open us LLC with my Moroccan ID Card ? (Both nationals) the little detail that put me in trouble is that even on my Moroccan ID Card my french address appears.

@Sols i can not open French company for other reason i'm actually employee and have a disclose agreement that i should not open a company or have other activities that generate cash. Maybe Uk Ltd and pay all the relevant tax be honest and then move forward ?

So i think regarding different arguments i maybe will open uk Ltd being 100% transparent regarding VAT and 19 corporate tax. manage it and once i can develop cash flow think about another country to establish my residency.

Thank you for all Really appreciate.

 

[John Andrews]

i can not open French company for other reason i'm actually employee and have a disclose agreement that i should not open a company or have other activities that generate cash. Maybe Uk Ltd and pay all the relevant tax be honest and then move forward ?

Then don't open a company. It takes 2 minutes of Google to find out the owner of an UK Ltd.

 

[SaintVince]

another option would be to open account in someone else’s name but have him cease control to you completely.
used to set up companies in Thailand this way.

i also was researching some companies and it looks like it is very difficult to get the details of the members of the LP set up in Ireland. Have a look at that option as well.

 

[kyzeur]

@mange38 mate i just try to explain to you the detailed situation not to bother you .

If i pay pay the taxe and VAT for the Uk Ltd and then didn't pay myself directly there will be no communication reacquired with tax office in France or Morocco ?

 

[kyzeur]

@SaintVince Thank for the advice as we discuss together it is pretty difficult to find out solution

 

[SaintVince]

@kyzeur I think you should go with the set up that is closest to you geographically (UK) or cheapest (Wyoming etc).

for now your revenues and profits will be small. You can reinvest the money in business to grow it (hmmm, maybe Estonia could also be an option).

once you are up and running set aside some money and go to some accountant who specializes in tax optimization. And he will be able to arrange the best set up for you.

 

[bnpsu]

@bnpsu To reply to you , I've talked to a Commercial representative regarding Stripe saying i will not risk to choose you as payment gateway if you close my account . She said me by writing prove that they will not close account anymore if i only stick to sports advice and not promote any broker betting site

interesting wow, would you mind sharing the conversation or how it went?

 

[ffbkdavid]

i think it more and more "entertaining" to see so called "entrepreneurs" having terrific ideas... but not the 1,200 or 3,000 to bring their ideas to reality

there is no such thing as an "uk llc", the jurisdiction offer either a common LIMITED COMPANY BY SHARES (ltd.) or a LIMITED LIABILITY PARTNERSHIP (llp)... there are alternatives like PLC's, but i assume one of the first named herein would be suitable

please note that there is a PUBLIC register naming all people with SUBSTANTIAL INTEREST in any entity registered at companies house... as i said... it's PUBLIC so anybody can have look into the structure online

not the best of all solutions, i assume

to file at least not only remarks concerning problems an alternative: there are COLLECTION AGENTS based in switzerland (with a basic paid in capital, at least ONE SWISS CITIZEN RESIDING IN THE COUNTRY taking responsibility) and they offer professional handling of invoices credited on a swiss bank account... immediately at disposal of the client after funds having become credited

just y 2c.

 

[kyzeur]

@ffbkdavid Thank you for your comments and advice.

However it was such mistake to name Uk LTD with Us LLC, mistake made by me but this is just a fault of attention.
Concerning the public listing from company house i already know that. The lack of privacy is evident but the first target point was and still is the avoidance or optimization of maximum TAX.
I actually take a look on your Swiss solution, from what i understand it require to involve a Third party a swiss national for taking responsibility which can lead to some confusion no ?

Thank you for your support and your input. I assume if i ever wanted to put the requested "3000" it will be on a french company not a fast Build internet one. Not all business require that.