Questions about anonymous New Mexico/Wymoing LLC + some kind of bank/EMI in Canada and taxes

[chooqwuuya]

I'm looking to form a single-member New Mexico/Wyoming LLC for privacy purposes (conceal name from public registry, technically its fine if banks or other legal institutions know about it although concealing the ownership as much as possible would be ideal) and to limit exposure to any potential troll lawsuits (ideally prevent them in the first place) or such things. From what I've gathered, a New Mexico/Wyoming LLC should be fine for this purpose. The business I will be doing is an e-commerce type thing selling purely digital goods in Canada, perfectly legal. Canadian resident, don't need any tax minimization schemes, looking for it to be quite inexpensive, relatively quick and not complex. Also I don't think that this business would be considered "high risk" in any way and I don't particularly want to use nominee services for this. Taking this into account, I have three questions at the moment:

1. What Banks/EMIs and payment processors accept Canadian dollars and are willing to work with a New Mexico/Wyoming LLC? Mercury is basically for USD, TransferWise/Wise doesn't like dealing with US LLCs. Who's left?

2. Since the business will be operating exclusively within Canada, dealing exclusively with Canadian dollars and Canadian customers, how would the taxes work? Would I have to file a 5472 and 1120? I know that I have to fill out and pay taxes in Canada with regards to this LLC and since its a single-member LLC, all the taxes fall on me individually to do. In that case, do I have to do any taxes/documents/papers in US at all (since I have no US customers/USD/etc.)? What tax-related things should I be aware of? I don't want to end up getting fined $25k+ for nothing.

3. Does anyone have any experience with businessregistrationus.com? They seem to offer a full Wyoming LLC package and they allegedly file your tax returns for you but their website looks quite sketchy, don't know if they are trustworthy.

Anyway, the most important thing here is to cheaply conceal name from being found in a public registry and protect against any troll lawsuits or something like that. If anyone has any information or experience with this, please let me know.

 

[bountymounty]

If you want the real privacy take it into mentor group gold - that's where such things are discussed.

Otherwise, appoint nominees! Full nominee service can protect you privacy as good as legally possible.

 

[chooqwuuya]

If you want the real privacy take it into mentor group gold - that's where such things are discussed.

Otherwise, appoint nominees! Full nominee service can protect you privacy as good as legally possible.

I literally just said very explicitly that I don't want nominees for various reasons. And I also said that I don't need "real" privacy, I only seek to conceal my name from being publicly searchable, its fine if banks or other institutions know about it.

 

[Spinat]

I literally just said very explicitly that I don't want nominees for various reasons. And I also said that I don't need "real" privacy, I only seek to conceal my name from being publicly searchable, its fine if banks or other institutions know about it.

clear answer: Forget it, not possible there!

 

[chooqwuuya]

clear answer: Forget it, not possible there!

Would be nice if you could explain why it's not possible there.

 

[Spinat]

Without nominees your name will be available to the public one way or the other. What you are looking for is over, it stopped 5 or 8 years ago. Transparency is the new buzz from OECD and the rest of the worlds governments.

 

[chooqwuuya]

Without nominees your name will be available to the public one way or the other. What you are looking for is over, it stopped 5 or 8 years ago. Transparency is the new buzz from OECD and the rest of the worlds governments.

Huh? I thought New Mexico didn't have a searchable public registry for LLCs and I thought that they don't ask you for things like your individual name when registering there (AFAIK, the state only wants to know things like the organizer and registering agent, neither of which would be me). They also don't have annual fillings or recurring fees. So how can my name end up public? Can you give me an actual explanation or reason as to why something like a New Mexico LLC wouldn't work for this or answer any of my other questions? I know that there's some new agency in USA or something like that which wants to identify business owners but its still not public and even if it becomes public in say a few years, that would be okay with me, it just needs to be private initially. If you have a nominee service that doesn't charge additional $500 whenever you want to do literally anything, do let me know and I'll consider it.

 

[Marzio]

If i remember correctly also a British Columbia doesn't have a public registry (you have to pay a fee to see who the members of a LLP are for example). Could that be enough for you?

 

[chooqwuuya]

Could that be enough for you?

Hm but they can still see who the members are if they pay a fee so its no good, at least for now. I thought about using US LLCs to make one before, but no one would be willing to open a bank/EMI account for that so its also no good. It might complicate taxes as well.

 

[MiltonStone]

US LLC with Mercury bank would work fine.

You can't avoid nominees if you want privacy... or you signup for mentor group gold and have a look there for your options to have 100% anonymity.

 

[chooqwuuya]

US LLC with Mercury bank would work fine.

You can't avoid nominees if you want privacy... or you signup for mentor group gold and have a look there for your options to have 100% anonymity.

I thought that Mercury is only for USD? Will Mercury allow me to open an account to transact only with CAD?

I think that what I want is just public name concealment legally, not full 100% anonymity like people here are suggesting. Its fine if banks or legal institutions know about the company details. A typical New Mexico LLC seems to be fine for that since they don't have things like annual fillings and they don't have annual fees.

I don't like nominees since they tend to have lots of hidden fees. Perhaps I can get them later, but for now a New Mexico LLC seems to be the best option. I just need clarification with regards to the tax aspects of this (New Mexico LLC that has no American customers, doesn't do business in America, doesn't transact in US dollars).

 

[Marzio]

Will Mercury allow me to open an account to transact only with CAD?

Nope.

Imho you have 2 options:

1. Go the BC LLP route i told you earlier.

2. Form a US LLC and use WIse

I just need clarification with regards to the tax aspects of this (New Mexico LLC that has no American customers, doesn't do business in America, doesn't transact in US dollars).

You will not owe US taxes but you will still need to file form 5472 as a single member foreign owner of a US LLC.

 

[chooqwuuya]

Form a US LLC and use WIse



You will not owe US taxes but you will still need to file form 5472 as a single member foreign owner of a US LLC.

I thought Wise looks down upon foreign-owned US LLC, especially New Mexico LLCs. I heard that they have randomly shut down accounts of US LLCs several months after they opened and they provide no explanation. Regardless, it seems the best thing at the moment.

So tax-wise, the only thing I would need to fill out is form 5472 and all the rest falls on me to do on my individual taxes in my home country.

Thank you very much for your answer, I appreciate it!

 

[Marzio]

I thought Wise looks down upon foreign-owned US LLC, especially New Mexico LLCs. I heard that they have randomly shut down accounts of US LLCs several months after they opened and they provide no explanation. Regardless, it seems the best thing at the moment.

Yes, that's the problem with EMI's in general where you talk to a chat.

In your case, since you are working with CAD it makes a lot of sense to use a BC LLP and use CA physical banks. You guys have one of the best, if not the best, banking system in the world.

If you are so concerned about privacy just put a canada nominee and one offshore company as LLP member so that nobody will ever know who is managing the LLP.

 

[Jerry1911]

It'll be very hard to get an account opened for a BC LLP, simply because there is no way for the bank/EMI to verify that you're the actual owner of it. (By owner I mean partner)

I've only managed to open a Payoneer and Wise account so far.

 

[chooqwuuya]

Yes, that's the problem with EMI's in general where you talk to a chat.

In your case, since you are working with CAD it makes a lot of sense to use a BC LLP and use CA physical banks. You guys have one of the best, if not the best, banking system in the world.

If you are so concerned about privacy just put a canada nominee and one offshore company as LLP member so that nobody will ever know who is managing the LLP.

But there's like 2 banks in Canada who would open a bank account for the most normal LLP right? If they see a foreign anonymous company as a partner like a New Mexico LLC, they might not be happy. Perhaps I can go to a physical bank location, give them all the information about the ownership of that company and the structure of what I'm doing and beg them to open an account for the business.

If I go with what you suggested here, how would I ensure that the nominee partner has practically no control over anything, effectively brushing them aside and operating normally without having to get everything approved since they have a tendency to slap extra $$ on everything you want to do.

It'll be very hard to get an account opened for a BC LLP, simply because there is no way for the bank/EMI to verify that you're the actual owner of it. (By owner I mean partner)

I've only managed to open a Payoneer and Wise account so far.

This is what I'm saying. Getting a bank account for your typical LLP is not easy, but a nominee partner + foreign LLC might be simply impossible. Its not like this country has a massive variety of banks like USA has anyway.

This Payoneer/Wise is for a BC LLP? Is this a normal LLP or a setup like the one mentioned above? Mind sharing how you got them to open Payoneer/Wise? Wise should be good enough to receive $ for this business.

 

[Marzio]

t'll be very hard to get an account opened for a BC LLP, simply because there is no way for the bank/EMI to verify that you're the actual owner of it.

Of course if you present to the bank a LLP with a panama foundation as a first member this wil obviusly rise a flag BUT nothing prevents you to open a bank account with only one natural person as a member (that could be the nominee) and adding the offshore company later.

What the bank care is to know the UBO and OP is the UBO so even if he adds a foreign company later as a member nothing will change from the bank perspective.

But there's like 2 banks in Canada who would open a bank account for the most normal LLP right?

Nearly all major banks open bank accounts for LLP's

 

[chooqwuuya]

Of course if you present to the bank a LLP with a panama foundation as a first member this wil obviusly rise a flag BUT nothing prevents you to open a bank account with only one natural person as a member (that could be the nominee) and adding the offshore company later.

What the bank care is to know the UBO and OP is the UBO so even if he adds a foreign company later as a member nothing will change from the bank perspective.

Ah okay. I think a BC LLP requires minimum 2 partners to establish, its not like an LP in other provinces where only 1 partner is fine.

So it would go something like this:
1. Setup a BC LLP with 2 nominess as partners
2. Open a bank account with the above, bank knows that I'm the UBO
3. Open foreign companies, something like 2 or 3 New Mexico LLCs
4. Add New Mexico LLCs as partners, remove nominees

Now there's a BC LLP without nominees right? The only thing is that if you sum up all the costs of doing this, its probably cheaper just to setup a proper anonymous offshore company and pay an accountant, so it kinda defeats the point.

Nearly all major banks open bank accounts for LLP's

AFAIK, it didn't use to be like this. Good to know that banks are open to making LLP accounts.

 

[Marzio]

Now there's a BC LLP without nominees right? The only thing is that if you sum up all the costs of doing this, its probably cheaper just to setup a proper anonymous offshore company and pay an accountant, so it kinda defeats the point.

Cheaper? Maybe but anonymity and cheap don't go hand in hand.

Even if you setup an offshore company and pay an accountant then what? Your only option is to use Wise.

With BC LLP instead and as a canadian you can rely on physical banks where you can enter any branch, any time and ask questions and this will become the biggest factor in deciding where to form a company moving forward.

AFAIK, it didn't use to be like this. Good to know that banks are open to making LLP accounts.

Just conteact them on Facebook and you'll see for yourself.

 

[chooqwuuya]

With BC LLP instead you can rely on physical banks where you can enter any branch, any time and ask questions and this will become the biggest factor in deciding where to form a company moving forward.

You think they'll let me open a bank account if I physically showed up at a branch, told them what I'm trying to do and gave them all the information (e.g. certificate of incorporation of a foreign LLC partner, registering agent information, etc. everything that would give proof that I own those companies) in conjunction with my own information?