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Wyoming LLC, FACTA report?

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Leeqap

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Oct 23, 2019
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#1
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Hello,

I'm freelancer developer in EU (Denmark) and I would like to incorporate an LLC in Wyoming, because I hate paperwork and don't want to pay 50-60% tax in my country. My income is 15-20K EUR / month. I have clients in several countries (EU, UAE, AU, USA etc... ). I don't have experience in international tax matters, but need to solve this problem.

I would like to use STRIPE with TransferWise borderless, but i'm not sure in it.

What's your experience, the US goverment will report the LLC's revenue to danish tax authorities because the owner is danish? The FACTA is not clear for me, because i'm only a member in this LLC and I'm not US resident. I don't have salary from the LLC.
 
#2
Leeqap said:
I hate paperwork and don't want to pay 50-60% tax in my country. My income is 15-20K EUR / month. I
Click to expand...

Whats wrong with relocating to lower tax or tax free country?
 
#5
Leeqap said:
I'm freelancer developer in EU (Denmark) and I would like to incorporate an LLC in Wyoming, because I hate paperwork and don't want to pay 50-60% tax in my country. My income is 15-20K EUR / month. I have clients in several countries (EU, UAE, AU, USA etc... ). I don't have experience in international tax matters, but need to solve this problem.

I would like to use STRIPE with TransferWise borderless, but i'm not sure in it.
Click to expand...

That doesn't sound like a smart solution at all. Pretty sure TransferWise will report it. The company is not even tax resident in the US, it is transparent taxation. It's basically a Danish company with a US address. (I'm no expert, but that's what I've read online so far.)

Leeqap said:
What's your experience, the US goverment will report the LLC's revenue to danish tax authorities because the owner is danish? The FACTA is not clear for me, because i'm only a member in this LLC and I'm not US resident. I don't have salary from the LLC.
Click to expand...

Even if the revenue isn't reported, you will be required to report the company registration to your home country. Failure to do so will most likely be treated as tax evasion.
Meaning they don't even have to know the revenue to prosecute you. They just need to know that you created this company and did not inform them. It also shouldn't be too difficult for them to estimate your revenue based on previous years.
You may want to rethink that plan.
 
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#7
In theory you can have a US LLC but you would have to report is as personal income in Denmark. Obviously this doesn't make any sense.

Here's what will happen. Tax authorities in Denmark will figure out you have an offshore company - either because they got the info from TransferWise (via reporting) or because you bought expensive stuff and someone reported you (and then it will be up to you to prove the source of funds).

There are 3 legal options here:
  1. move out of Denmark to some other country
  2. set up a limited company abroad with enough substance (office, employees, ...)
  3. set up a company in Denmark
I suggest going for the 1st option but it highly depends on your revenue/net worth and preferences. With 15-20k EUR/month you can simply move to Cyprus and become a non-dom resident.
 
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#11
If moving isn't really an option at the moment (also note that Denmark probably has very strict rules about breaking tax residency status), you could consider finding someone you trust in a low-tax country to invoice your clients. You could then invoice that company. You would basically be paying them a high commission.
But then the money would be theirs and there would be the challenge of getting it out of that company later.
 
#12
JustAnotherNomad said:
Pretty sure TransferWise will report it. The company is not even tax resident in the US, it is transparent taxation. It's basically a Danish company with a US address. (I'm no expert, but that's what I've read online so far.)
Click to expand...
You will get reported with that model. Don't forget that at the end of the year you will have to submit all your personal KYC documents to the accountant and at the latest at this time you will get reported.
 
#17
There are two factors.
First
Do you want to get the money in Denmark back from USA company,or not ?
If so , above program will not help you .
On the other hand ,Manage more than one director from Low tax Country's partner or undeveloped one . There are companies who offer that. and move the money into an offshore country .
Appoint yourself as an employee of the company and get paid for that.
By doing so , You may be only pay the tax you receive in your country's bank.
There are many other thing to be covered . Details discussion is required with Tax experts.
Thank you
 
#18
Right. That won’t raise any red flags whatsoever. If the work is carried out in DK, it is probably taxable in DK (permanent establishment).
 
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