US LLC for Anonimity but Administered from Malta. What law does it follow?

[MarkusCostigan]

Hi guys,
is it possible to take advantage of the anonymity of a US LLC but manage it from Malta (by a Maltese resident)? So if the LLC were sued or had legal problems, everything would take place in Malta and not in the United States. Is it possible to do something like this if specified in the terms and conditions?

So just use the US LLC as a "front" but taxes and legal/court issues... everything in Malta (because the US single member is Maltese resident). it's possible?

Thank you.

 

[Sols]

A company can be sued wherever a court has jurisdiction under that court's applicable laws. In your case, it's the US and Malta.

You can put in your T&C that any disputes arising from them should be settled under the laws of whichever jurisdiction you prefer. That doesn't guarantee a Maltese or American court couldn't come for you, though.

Likewise, if your US company breaks Maltese law, Maltese courts can find your US company guilty of that crime. They can also attempt to go after you personally. Whether they succeed or not depends on tons of factors that are too long to list here.

 

[MarkusCostigan]

Thanks for the reply.
The fact is that in case the LLC is sued, the problems can be resolved in a Maltese court rather than in the USA. That is, it is always easy to talk about non-resident US LLC when talking about taxes, but what if you are in a business with a high rate of legal problems? Do you fly to Wyoming every week ?

 

[Sols]

The fact is that in case the LLC is sued, the problems can be resolved in a Maltese court rather than in the USA.

You can try to steer any litigations and disputes to be under Maltese law but that doesn't mean other jurisdictions don't have jurisdiction over the company or a dispute related to it.

That is, it is always easy to talk about non-resident US LLC when talking about taxes, but what if you are in a business with a high rate of legal problems? Do you fly to Wyoming every week ?

If it's just a lawsuit and not a criminal trial, it's often enough to just have your lawyer represent you in court.

 

[MarkusCostigan]

You can try to steer any litigations and disputes to be under Maltese law but that doesn't mean other jurisdictions don't have jurisdiction over the company or a dispute related to it.


If it's just a lawsuit and not a criminal trial, it's often enough to just have your lawyer represent you in court.

Ok thank you for your answer.
Don't you think the fact of having a US LLC instead of a Maltaese LTD (or any other company) can increase your chances of being sued by someone in the USA?

 

[Sols]

Don't you think the fact of having a US LLC instead of a Maltaese LTD (or any other company) can increase your chances of being sued by someone in the USA?

Well, it's much easier for someone in the US to sue a US company than it is to sue a foreign company. The risk of being sued has more to do with what your business does and whether it causes damages or losses to people that they then try to sue the company for.

 

[MarkusCostigan]

Thank you very much.
The project is an online finance community, the problem is all possible copyright violations, financial advice etc.. and since the United States is already quite famous for easy complaints and very high costs...I wouldn't want to save for the costs of running the company but then spend it all on lawyers. I would like to prevent.
How safe do you think legal insurance is in this regard?

 

[Sols]

If you're so worried about US litigation, why form a US entity at all? Is there some benefit having a US entity that you can't get elsewhere?

Insurance might be a good idea if you can find someone willing to insure you (not easy as a non-resident). Read the fine prints, make sure it actually does what you need it to do. It probably won't help you if you're doing something unlawful.

 

[MarkusCostigan]

The problem in Malta is that you are inside an ecosystem of thieves, and being trapped and "pseudo blackmailed" with costs that increase every time is a moment. Having a US LLC would be much more peaceful. But at the same time as I told you, it would pose some stress. However, probably the real strategy is to try to keep costs lower here.

Thanks Sols you are really kind

 

[JohnLocke]

And why specifically the USA and not another place outside of Malta?

 

[MarkusCostigan]

And why specifically the USA and not another place outside of Malta?

For example? However, consider 5% tax in Malta (Maltese company + Holding outside Malta), the company would already have substance in Malta... at least these are the positive sides. I had considered Cyprus anyway.

 

[MarkusCostigan]

Imagine launching a website like StockTwits or SeekingAlpha.com Is a nonresident US LLC ok at this point?