Setting up US LLC while living in UK/AUS/NZ/IRE?

[banafinfodafuggiano]

I run an online e-com business with warehouses in the US, would this option be suitable and working
when setting up a US LLC?

incorporate in a country that doesn't share information with UK/AUS/NZ/IRE (I presume the USA, Wyoming since they did not sign CRS?)

and then invoice your offshore company and then pay tax in your residency country on all money that you bring into the country.


Would this work?

I can only incorporate in good quality countries such as US/AUS/NZ/UK etc... because my payments providers don't accept companies from
countries such as Georgia, Seychelles, etc...

 

[Spinat]

What is your goal ? I don't really understand what it is you want?

 

[banafinfodafuggiano]

What is your goal ? I don't really understand what it is you want?

The goal is minimise payable taxes in my current residency country (pay only what is moved into my country bank account and not pay taxes on ALL offshore company profits)

 

[Sols]

The US hasn't signed up for CRS because it already had something like it before called FATCA. FATCA's main purpose is for the US to get information from other countries, but it does allow for the US to share information with others. All the countries you mentioned have entered into FATCA agreements with the US which allow for reciprocity.

I.e., your structure and livelihood (and personal freedom, in case you get jailed for tax fraud) is dependent on the US not reciprocating and not reporting back to your home country. The US company becomes tax resident where you live, where it either gets treated as a partnership (pass-through) or corporation (taxable entity).

Furthermore, LLCs aren't designed to retain funds. All the money you make through it becomes taxable, regardless of whether you withdraw the funds or not. If you want to defer personal tax, you would need to set up a C corporation, which must be corporate tax in the US. But then you can control whether and how much to pay yourself in salary (subject to income tax) or dividends (subject to capital gains tax).

Since you have warehouses in the US, you may find yourself subject to US taxation under ECI (Effectively Connected Income), which you can read about here: Effectively Connected Income (ECI) | Internal Revenue Service