VISA/MASTERCARD don't accept non-resident owned US LLC - need EU UK or Lithuanian LLC

[avalanche]

Possibly. I’m not an expert on US taxes.
I’m thinking that with payments going directly to the UBO, it may be classified as a dividend payment and subject to withholding tax? Then again, a disregarded entity should be treated just like the UBO for tax purposes?
I guess one should really talk to a CPA, I just wanted to mention it.

Here’s the thread I was thinking about, maybe @mardz has found a solution in the meantime:

[USA] Inc. vs LLC - Is my tax planner trying to fool me ?

I am in the eCommerce business currently living in Germany. I would like to create an offshore company and move outside of Germany asap. My tax planner recommended me this setup: USA Inc. (Incorporation) + moving to Malta I did a lot of reading lately and noticed nobody mentions Inc. while...

www.offshorecorptalk.com

Lots of previous threads about this stuff:

Non-U.S. Resident LLC - Payment Processors - DropShipping - Tips

Hello, I just got fired from Stripe, they say my business is too risky, I sell dropshipping clothes in Europe with an American LLC. So I have 5 days to find another payment processor, do you have any advice for me? He must be able to be in place quickly, accept dropshipping and non-U.S...

www.offshorecorptalk.com

Shopify Dropshipping as a Non US resident

Hi, I've opened an LTD in the UK with the intention of opening a stripe account But after stripe reviewed my store they rejected my request saying "it's too high risk" My store looks very branded so the only option is that it is because its dropshipping What are the most likely payment...

www.offshorecorptalk.com

There is a chance your a*s might be pounded by IRS for such scheme lol

 

[JustAnotherNomad]

That’s why you don’t do anything without getting it approved by a CPA.
I don’t see an issue with such a setup per se, but as I mentioned, you’d probably have to meet transfer pricing restrictions etc.

 

[avalanche]

That’s why you don’t do anything without getting it approved by a CPA.
I don’t see an issue with such a setup per se, but as I mentioned, you’d probably have to meet transfer pricing restrictions etc.

The very fact that your scheme allows you to dodge full US corporate tax by abusing their disregarded entity might cause some shitstorm and lots of fines. But yeah, you need to get approval from CPA first

 

[JustAnotherNomad]

No, such things are not uncommon when the value is actually delivered somewhere else.
It’s quite common to have only a local sales company that hardly makes any profit because the services are delivered my the main branch in a different country.

 

[CaptK]

UK LLC with a Revolut Business account they offer merchant services.
Shopify and WIX also supply merchant API's as well.
After 3-6 months you can approach one of the large banks in thd UK for merchant services. They want to substantiate your business model. VAT is applicable but any customer outside the UK are exempt and where possible you can claim back most of it anyway.

 

[bigsmoke]

For interested ones, these processors will not accept your foreigner, non-resident owned US LLC:


2checkout
Allpago
Aps payment
Bluesnap - unsupported busines type
Braintree - PayPal service, so need same as PayPal (SSN, ITIN)
CCbill
Concardis
Datatrans.com
ePayments - got only for EU EUR IBAN
G2A Payments
Ingenico
Klarna
Pagbrazil
Payoneer - I got account with them, but looks like they are limited to acceptance payments only from some platforms (Amazon etc.)
Paysafe
Paysafecard
Przelewy24 - EU companies only
Six-payment-services
Skrill
Stripe - need to be formed by them, or living in US
Tpay
Trustly
Trustpay.eu
VR Payments
Poli payments
Paytrail
Worldline

So basically non-resident owned US LLC is useless?

 

[CaptK]

So basically non-resident owned US LLC is useless?

Yes, for e commerce.

 

[Spinat]

UK LLC with a Revolut Business account they offer merchant services.

the same as we are used to it with 2co and Stripe ?

 

[CaptK]

the same as we are used to it with 2co and Stripe ?

Yes

 

[mardz]

Here’s the thread I was thinking about, maybe @mardz has found a solution in the meantime:

Yes I found a solution, and very happy with the current setup
This setup is explained in my post here: [USA] Inc. vs LLC - Is my tax planner trying to fool me ?
Basically you need 2 LLC's, one is taxable and will be used as payment gateway. The 2nd one is transparent and will be used to invoice the 1st to get the money out almost tax free.

 

[JustAnotherNomad]

Yes I found a solution, and very happy with the current setup
This setup is explained in my post here: [USA] Inc. vs LLC - Is my tax planner trying to fool me ?
Basically you need 2 LLC's, one is taxable and will be used as payment gateway. The 2nd one is transparent and will be used to invoice the 1st to get the money out almost tax free.

No issues with transfer pricing?

 

[CaptK]

No issues with transfer pricing?

100% Transfer pricing.

Unless the profit receiver is offshore. Best thing to do is first leave Germany and the set up your tax residency then incorporate using your new Tax ID.

Anything else requires a Nominee and a pass through entity.

You should budget 10K at least for a proper set up.

 

[JustAnotherNomad]

He mentioned he leaves some profits in the corporation, so I would guess that is to address transfer pricing.
Where do you live now, @mardz ?

 

[erni]

2checkout

Are you sure they won't accept a US LLC - say Wyoming or Delaware company? What aboyt RBS WorldPay don't they accept neither?

There must be payment service providers that can do the processing, have you tried instabill?

 

[Zaki]

Yes, for e commerce.

Is it useless for Services(design,programming...) as well ??

 

[exprtadvisrdev]

Is it useless for Services(design,programming...) as well ??

I have been using it for services for some years without issues, to me LLCs are better when you don't need to handle credit cards