US LLC for physical goods

[Ivkide]

I sell physical goods from Rus, produce them there and ship also from there. Mostly working with US and EU. Thinking about US company. Wyoming LLC or any alternative. Is that a good idea? What TAXes I need to pay? Any withhold taxes (dividends)?

 

[fshore]

A US llc single member is disregarded for taxes, that means you personally is taxed as if the llc didn't exist. So you'll pay the same taxes to the US as you do today. Taxes to other countries will depend on a range of factors.

If you ship to EU customers then it might be an idea to prepare for the 2021 vat changes where you probably have to pay vat even when shipping from outside EU. That should still be possible with a US company, I'm not quite sure how that will compare to using a EU company.

 

[poetwarrior]

I cannot answer as to the EU or Russia on the consequences of a Wyoming LLC. However for USA tax purposes the LLC is treated as a disregarded entity and flows through to the owner. So assuming that you do not store inventory in the US and do not have any US employees and are merely shipping to the US, this will not trigger income or corporate tax in the US. However the Wyoming LLC will still have to file an informational return each year with the IRS form 5472.

 

[poetwarrior]

My answer assumed that you were not a US person. IF you are the answer would be different.

 

[Ivkide]

A US llc single member is disregarded for taxes, that means you personally is taxed as if the llc didn't exist. So you'll pay the same taxes to the US as you do today. Taxes to other countries will depend on a range of factors.

If you ship to EU customers then it might be an idea to prepare for the 2021 vat changes where you probably have to pay vat even when shipping from outside EU. That should still be possible with a US company, I'm not quite sure how that will compare to using a EU company.

Am I right that in a case I only use US bank account and don`t produce goods or do anything in US I am not obligate to pay any TAXes? (corporate, state, dividends).
If I take money for personal use from corporate account I also no need to pay dividend tax?

What VAT changes? Even if i send small parcels by regular post?

 

[Ivkide]

I cannot answer as to the EU or Russia on the consequences of a Wyoming LLC. However for USA tax purposes the LLC is treated as a disregarded entity and flows through to the owner. So assuming that you do not store inventory in the US and do not have any US employees and are merely shipping to the US, this will not trigger income or corporate tax in the US. However the Wyoming LLC will still have to file an informational return each year with the IRS form 5472.

IRS form 5472 it`s a for tax return? Or this form just to prove that I am not a US citizen and have no US source income? Am i need to run bookkeeping or do annual audit?

 

[Spinat]

Have a look at this thread Wyoming LLC in the USA or Delaware LLC what agent and how secure? there is some very good information there which may have your interest.

 

[poetwarrior]

Am I right that in a case I only use US bank account and don`t produce goods or do anything in US I am not obligate to pay any TAXes? (corporate, state, dividends).
If I take money for personal use from corporate account I also no need to pay dividend tax?

What VAT changes? Even if i send small parcels by regular post?

Assuming that you set up the LLC in Wyoming, you are correct, you would have no US based taxes. If you set up in another state you might have taxes depending on the State.
US LLC is a pass through entity unless you elect otherwise, so no dividend tax in US.
US does not have VAT. No idea how this effects you in your home country or EU.

IRS form 5472 it`s a for tax return? Or this form just to prove that I am not a US citizen and have no US source income? Am i need to run bookkeeping or do annual audit?

It is not a tax return it is an informational return that gives information on the foreign owner of the LLC and monies sent to them. It does not trigger tax liability. You will have to track income and expenses.

 

[Ivkide]

Assuming that you set up the LLC in Wyoming, you are correct, you would have no US based taxes. If you set up in another state you might have taxes depending on the State.
US LLC is a pass through entity unless you elect otherwise, so no dividend tax in US.
US does not have VAT. No idea how this effects you in your home country or EU.



It is not a tax return it is an informational return that gives information on the foreign owner of the LLC and monies sent to them. It does not trigger tax liability. You will have to track income and expenses.

Looks like this company is a good option for me!
Thank you!

 

[Ivkide]

Братан I think that Canada could work for you as well and you Will pay 0 taxes

Thanks for advise. I know whey have some issues with documents verification?

 

[Ivkide]

Assuming that you set up the LLC in Wyoming, you are correct, you would have no US based taxes. If you set up in another state you might have taxes depending on the State.
US LLC is a pass through entity unless you elect otherwise, so no dividend tax in US.
US does not have VAT. No idea how this effects you in your home country or EU.



It is not a tax return it is an informational return that gives information on the foreign owner of the LLC and monies sent to them. It does not trigger tax liability. You will have to track income and expenses.

I mean 30% withhold. I was speaking with advisory (upwork) and he assumed that I had to pay on a cashouts for private use? - or its a wrong?

My TAXation must be as S-corp for zero TAXes?

Sorry for a lot of questions. Its a nightmare for me, cause every time I got different information. Hope here there is someone who has faced such situation and how it really works.

 

[fshore]

For a disregarded llc you would give them w8ben as a non us resident sole proprietor, and there should be no taxes for work performed outside us.