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USA LLC To Keep Profits without paying tax ?

buxhzk

buxhzk

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Sep 15, 2020
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#1
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I am a resident of India.
I have software business where I get income worldwide.

I incorporated a Dubai Freezone company last year and have been receiving client payments on that account.
However , UAE reports income back to India via CRS.

Thinking about opening a Delaware LLC and accept payments in a US Bank account instead of the UAE company I currently have.
I have 0 employees or assets in USA.
I have customers from USA , Hongkong , India

Two questions to the amazing people here...

1. Will I have to pay taxes on USA since I am a non resident and have 0 employees in USA. ?
2. Since USA dont report back Income to any other countries, is it safe to assume that I wont have to pay taxes on the income earned by this US LLC till I transfer any money to India ?
 
#2
No tax on the LLC but tax applicable when you remit to India.
If you have a freezone company and account already. Invoice the payments to the LLC but you still have to send those funds elsewhere. Don't leave your profits in the US LLC.
 
#3
May I know why you are recommending leaving profits in the US LLC ?
What about"compiling" profits (and not reporting to home country) until the person moves to an 0% Income tax country ?
 
#4
If the bank turn around and say that they are closing your account you may have a problem getting it back. Its better to be safe than sorry.
 
#5
CaptK said:
No tax on the LLC but tax applicable when you remit to India.
If you have a freezone company and account already. Invoice the payments to the LLC but you still have to send those funds elsewhere. Don't leave your profits in the US LLC.
Click to expand...

Why is it not recommended to leave profits in usa llc?

I am considering closing my Dubai Freezone company since its not very beneficial for me now.
 
#6
buxhzk said:
Why is it not recommended to leave profits in usa llc?

I am considering closing my Dubai Freezone company since its not very beneficial for me now.
Click to expand...

Please see the link below when this comes into effect is that there will be blanket freeze on accounts until you can provide what's required. That information will be made available and every government will comb to through it looking for their nationals.

https://www.offshorecorptalk.com/th...rship-requirements-on-llcs.27584/#post-144035
Don't close down your FZE, PM me to discuss further.
 
#7
CaptK said:
Please see the link below when this comes into effect is that there will be blanket freeze on accounts until you can provide what's required. That information will be made available and every government will comb to through it looking for their nationals.

https://www.offshorecorptalk.com/th...rship-requirements-on-llcs.27584/#post-144035
Don't close down your FZE, PM me to discuss further.
Click to expand...


Indian govt. Knowing about my LLC isn't going to harm.
But does USA transfer my bank activity to India is the real question.

I am unable to PM. new member here. I have to wait i guess
 
#8
Dubai Freezone company renewal is approx $4k USD a year.
Serves me no purpose as U.A.E. govt. reports my income back to India.
India govt. just updated tax laws stating that I have to stay abroad for approx 240 days to be a non resident.
I am seeing 0 benefits renewing the FZE company. (unless I am not seeing it the right way)
 
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#9
Why you didn't get a UAE residency?

- Open FZ company and get a UAE residency.
- Rent a cheap flat for 1-2 months to get DEWA(utility bill) and buy a sim card.
- Open personal + company bank account in UAE by using your residency, DEWA and sim card.

This setup shouldn't be reported via CRS and expect approx $10k cost per year.

Another thing is USA can report your income to other countries via FATCA. FATCA doesn't mean a single way(USA to another country) information sharing. You should check the details of USA-India FATCA agreement.
 
#10
Im sure he would have done so already as he has to have an ID to open a bank account. India's rule is 200+ days out of the country to acheive non-dom
 
#13
I already have UAE residency and FZE company.


India Govt. requires to have proof that I lived in UAE for 240 days to let me off their hook.

Why do you think UAE won't report my income to India? They have signed the CRS agreement.
India is also part of CRS.

UAE has very close ties with India. (Approx 30% or uae population is Indian)
Many banks in uae asks for Indian tax ID when we open bank accounts.
UAE reports 100% activity back home.
much more than usa llc will ever do.


I have lived in UAE for some time.
Its not cheap. 10k total is unrealistic unless we live in a labour camp in desert for the year.


About the FATCA
As far as I know. usa is not reporting income back to India. I may be wrong.. Will do further research (I hope usa don't)
 
#14
buxhzk said:
Why do you think UAE won't report my income to India? They have signed the CRS agreement.
India is also part of CRS.

UAE has very close ties with India. (Approx 30% or uae population is Indian)
Many banks in uae asks for Indian tax ID when we open bank accounts.
UAE reports 100% activity back home.
much more than usa llc will ever do.
Click to expand...

Having a CRS agreement does not mean your information going to exchange automatically. CRS depends on your residency but also other details like; phone number country, money transfer destinations, any address other than resident country etc... basically bank needs to 100% ensure that you're really resident of the UAE.

If you don't want to deal with UAE banks then you can also open any EMI or offshore bank account for your company and you can open an offshore personal account. You have to use your UAE residency and supporting documents(utility bill, UAE phone number) for all banks. This setup also will not share any income details with India via CRS.

buxhzk said:
I have lived in UAE for some time.
Its not cheap. 10k total is unrealistic unless we live in a labour camp in desert for the year.
Click to expand...
$10k is the average cost of company per year(renewal, accounting, visa, insurance etc..), not the living cost of course doh948""

buxhzk said:
About the FATCA
As far as I know. usa is not reporting income back to India. I may be wrong.. Will do further research (I hope usa don't)
Click to expand...

https://www.iexpats.com/india-signs-up-for-fatca-to-block-black-money/
 
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#15
rowena said:
Having a CRS agreement does not mean your information going to exchange automatically. CRS depends on your residency but also other details like; phone number country, money transfer destinations, any address other than resident country etc... basically bank needs to 100% ensure that you're really resident of the UAE.

If you don't want to deal with UAE banks then you can also open any EMI or offshore bank account for your company and you can open an offshore personal account. You have to use your UAE residency and supporting documents(utility bill, UAE phone number) for all banks. This setup also will not share any income details with India via CRS.


$10k is the average cost of company per year(renewal, accounting, visa, insurance etc..), not the living cost of course doh948""



https://www.iexpats.com/india-signs-up-for-fatca-to-block-black-money/
Click to expand...

MANNN! I Million thanks.
This post was an eye opener.
I can totally see myself making a setup like this.

Cost of FZE setup is not 10k. it's approx 5k
I have it setup already.
 
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#17
Dandyline said:
Which freezone and licence?
Click to expand...


I incorporated in UAQ Freezone.
Ajman freezone is also low cost.


Mistake I did was, I used an agency.
agencies charge too much fee.
If we just call up ajman freezone they will do all this for free.(might be slow)


With this incorporation we will get access to UAE residence visa as well.
 
#18
buxhzk said:
I incorporated in UAQ Freezone.
Ajman freezone is also low cost.


Mistake I did was, I used an agency.
agencies charge too much fee.
If we just call up ajman freezone they will do all this for free.(might be slow)


With this incorporation we will get access to UAE residence visa as well.
Click to expand...

Yes i know. How long did it take to get the residence visa?
 
#20
buxhzk said:
If we just call up ajman freezone they will do all this for free.(might be slow)
Click to expand...
Won't you need to speak the language or can you deal with them in English?

Are you sure this is possible, why would they help you for free and how do you know that it is possible?
 
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