US LLC and Dubai Resident

[FlyAway]

Good morning everybody!

I have the following setup:

- Dubai resident with a Fujairah company (have company bank account, not personal bank account)
- First LLC in WY with Mercury bank account
- Second LLC in Florida with 2 local bank accounts in two different banks (opened by traveling there)
- I have business customers from Europe exclusively and they would pay me to the LLCs (paying directly to UAE is always a pain for EU companies)

What's the best, cleanest, safest way to cash out from the LLCs to Dubai? I just don't want any problem in the future.
I have a couple of ideas but maybe you have more.

1) The Dubai company invoices the LLCs? I would normally do that but recently during the last KYC the UAE bank asked me if I'm going to receive any funds from the US, as far as I understand, they will be subject to endless scrutiny and pre-approvals.
2) The LLCs send the funds to my personal bank account in the UAE (that I don't have yet) since the profit are passed directly to the single foreign owner? Can I just send them easily? What about the non existent double tax treaty between US and UAE? Are they going to be taxed?
3) Please propose any other correct way to do this

Thanks a lot for your help
Have a great day

 

[andrew28fl]

This is quite interesting. As far as I understand, Single member US LLC is disregarded entity, so basically taxation of that entity is the same as the owner of the entity. If you as the owner reside in a country where there is no personal taxation (such as UAE), you should be able to retain the earnings in the company's account tax free, or pay yourself any amount (salary, dividends) tax free. Any experts to comment on this?

 

[FlyAway]

This is quite interesting. As far as I understand, Single member US LLC is disregarded entity, so basically taxation of that entity is the same as the owner of the entity. If you as the owner reside in a country where there is no personal taxation (such as UAE), you should be able to retain the earnings in the company's account tax free, or pay yourself any amount (salary, dividends) tax free. Any experts to comment on this?

That's correct, but in order to do so, there must be a double tax treaty between US and the country where you are going to receive your profits.
According to the accountant, they "should" be tax free, but I would love to have a "will", not just a should

 

[FlyAway]

Anybody can help or suggest something please?
It would be greatly appreciated, thanks!

 

[BlueMist]

I also have a company in Fujairah and receive payments from Europe. To mitigate being paid directly EUR from Europe to UAE, I have setup Moneycorp business account. I asked them upfront if it is fine if only small portion like 10-20% of the amounts received would be converted (since they are predominantly FX company) and the rest would be transferred to UAE bank account untouched. They were okay with this. So exchange something from EUR to AED just to not look like a pass through account (e.g. to cover my salary payouts) and send both the AED and EUR to UAE bank account. While the EU customers pay me in EUR to Moneycorp bank account where for EUR you get a choice of either GB or ES IBAN. The only small issue is that the paying party has to mention your unique reference account number in payment details in order to be credited smoothly.

Alternatively you may want to check Paysera if unique IBAN number is required. I don’t know Paysera well but with Moneycorp I have never had any issues even for €100k+ transfers. You get the advantage of having SEPA access, while all funds you send from Moneycorp are sent free of charge as OUR SWIFT, so you lose absolutely nothing.

 

[andrew28fl]

@FlyAway could you please tell me who you used to form your Fujairah company and bank account, and how long ago? How much was the setup cost and yearly maintenance cost? Do you have to do yearly accounting and file audited financials? Thanks.

 

[SoNewToAllShit]

@FlyAway could you please tell me who you used to form your Fujairah company and bank account, and how long ago? How much was the setup cost and yearly maintenance cost? Do you have to do yearly accounting and file audited financials? Thanks.

does it make sense to setup a company there today?
https://mszconsultancy.com/company-formation-in-fujairah/