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US LLC banking, address and reporting

artmiriam30

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Nov 19, 2023
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I have a Wise Bank account for my single owner US LLC (disregarded entity) since my clients required invoicing in Euro. The IBAN and address for the Wise account is a Belgian one. As a perpetual traveller with an EU passport and no current tax residence as of 2023, I am a bit concerned about the compliance of the Wise account. Even the US LLC creates no tax liability, can the LLC’s bank account create such liability? Is the Wise BE account subject to CRS reporting ? Would the account information be shared with the EU country of prior tax residence for which I have an address associated with the bank account?

What is the way around this? Would it be better to switch from the Wise BE account to a US bank account which would be subject to FATCA reporting instead of CRS (since the US does not report to Europe)? Which US banks open accounts in Euro remotely?

I heard that recently Mercury asks for more information from new account holders/ applicants such as a physical address of the US LLC and a US based owner. Is only Mercury requiring this, or all US banks? Wise did not yet notify me of any such requirements.

Do I need to submit form W8BEN to inform the IRS that I am not a tax payer in the US? I heard Mercury does not accept W8BEN but only W9 which would require adding a member to the US LLC, assign them at least one share, and file form 8832 ? I understand a single member LLC is disregarded for taxes in the US. But if the LLC has a physical office address in the US or switches from a disregarded entity to a partnership/multi-member LLC, does this create tax liability in the US?

Are there any other viable banking alternatives or ways to tackle these issues?

Many thanks in advance.
 
I heard that recently Mercury asks for more information from new account holders/ applicants such as a physical address of the US LLC and a US based owner. Is only Mercury requiring this, or all US banks? Wise did not yet notify me of any such requirements.

I started a US LLC last month and I opened a Mercury account a week ago.
I am officially living in Europe.
There is no US based owner. They did ask for the registered address (agent) and my home address. Had to prove that with a utility bill.

I noticed that all banks and even payment gateways (to accept credit cards online) are asking for the registered address and the address where work is actually performed/home address of the owner + EIN of the company. And they all asked for proof, utility bills, bank statements with address.

The only exception was 1 payment gateway. No EIN needed and it seems they don't care where I live. But later I found out that they ae based in HK.
 
I have a Wise Bank account for my single owner US LLC (disregarded entity) since my clients required invoicing in Euro. The IBAN and address for the Wise account is a Belgian one. As a perpetual traveller with an EU passport and no current tax residence as of 2023, I am a bit concerned about the compliance of the Wise account. Even the US LLC creates no tax liability, can the LLC’s bank account create such liability? Is the Wise BE account subject to CRS reporting ? Would the account information be shared with the EU country of prior tax residence for which I have an address associated with the bank account?

What is the way around this? Would it be better to switch from the Wise BE account to a US bank account which would be subject to FATCA reporting instead of CRS (since the US does not report to Europe)? Which US banks open accounts in Euro remotely?

I heard that recently Mercury asks for more information from new account holders/ applicants such as a physical address of the US LLC and a US based owner. Is only Mercury requiring this, or all US banks? Wise did not yet notify me of any such requirements.

Do I need to submit form W8BEN to inform the IRS that I am not a tax payer in the US? I heard Mercury does not accept W8BEN but only W9 which would require adding a member to the US LLC, assign them at least one share, and file form 8832 ? I understand a single member LLC is disregarded for taxes in the US. But if the LLC has a physical office address in the US or switches from a disregarded entity to a partnership/multi-member LLC, does this create tax liability in the US?

Are there any other viable banking alternatives or ways to tackle these issues?

Many thanks in advance.
Hello!
Alternatives: Levro, Stripe, Arival (offer EUR but no direct banking details) and airwallex
 
Your problem / situation is rather complex, more worth a private discussion with a qualified tax advisor / lawyer / accountant.
For now just a few hints:
As a perpetual traveller with an EU passport and no current tax residence as of 2023,
It is not as easy as it seems to have no tax residence.

can the LLC’s bank account create such liability?
Yes, it can.
Is the Wise BE account subject to CRS reporting ?
It is not completely clear but well possible and definitely you can expect it in the near future.
Would the account information be shared with the EU country of prior tax residence for which I have an address associated with the bank account?
As above.
What is the way around this? Would it be better to switch from the Wise BE account to a US bank account which would be subject to FATCA reporting instead of CRS
It would be better.
(since the US does not report to Europe)?
They usually do not but they should (in theory) and definitely they can.
Which US banks open accounts in Euro remotely?
If you mean bank, not an EMI, I do not recall any – but it does not mean that there isn't some.
I heard that recently Mercury asks for more information from new account holders/ applicants such as a physical address of the US LLC and a US based owner.
+- true.
Is only Mercury requiring this, or all US banks?
Not all for now, AFAIK.
Are there any other viable banking alternatives or ways to tackle these issues?
In fact, it is not a banking problem – see above.
Many thanks in advance.
You're welcome.
 
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