Question wyoming LLC VS UK LP

[hef52372]

Which option would be easier to maintain and have more banking options?
i'm a doing marketing and a bit of web development, clients are outside US and EU, holding EU passport and currently living in EU, but planning to move to some 0% income tax and no CFC location in summer.
Currently i make ~50k yearly

 

[Marzio]

Do you have UK customers? If not you could go with UK LLP (same as UK LP + limited liability protection)

 

[Sols]

For banking, an LP or LLP might be slightly easier but things aren't as easy as they used to be. Brexit and LP/LLPs' popularity with money launderers haven't exactly helped the prestige and acceptance of the entity.

Maybe worth considering that LLC requires only one member, whereas LP/LLP requires two.

 

[Marzio]

Maybe worth considering that LLC requires only one member

Yes but payment processor for LLC will be only in USD.

He doesn't have US customers so it's fair to suppose he is not charghing in USD.

If that's the case he could lose something like 4% because of currency conversion fees.

 

[hef52372]

Do you have UK customers? If not you could go with UK LLP (same as UK LP + limited liability protection)

no, i don't

He doesn't have US customers so it's fair to suppose he is not charghing in USD.

Exactly

 

[Sols]

Yes but payment processor for LLC will be only in USD.

That's perhaps true in this case because going for a multi currency setup may be too complex for such a small business. But a US company can process and receive other currencies.

He doesn't have US customers so it's fair to suppose he is not charghing in USD.

Clients are outside both US and EU and new place of residence is yet to be determined. USD could be useful/as useless as EUR/GBP.

If that's the case he could lose something like 4% because of currency conversion fees.

If you're paying 4% to convert USD, you're being ripped off. Not even PayPal charges that much.

The same would go for EUR or GBP, unless the new place of residence is a EUR or GBP territory.

 

[Marzio]

If you're paying 4% to convert USD, you're being ripped off.

I'm not paying 4% to convert to USD, i'm talking about using Stripe to process non USD charges.

Stripe charges you 2.9% + $0.3 but since USD is the only settlement currency available there will be a 2% charge to convert whatever currency you are charging in USD.

You are losing nearly 5% on every sale.

 

[Sols]

I'm not paying 4% to convert to USD, i'm talking about using Stripe to process non USD charges.

The business activities mention in the first post don't immediately strike me at ones for which you'd use card processing to accept payment from clients.

But if you do, I agree Stripe is popular for businesses of this size.

Stripe charges you 2.9% + $0.3 but since USD is the only settlement currency available there will be a 2% charge to convert whatever currency you are charging in USD.

You are losing nearly 5% on every sale.

I'm not sure how we get from 2% currency exchange charge to 4% (now 5%). It sounds like it's 2.9% + $0.30 for processing (using the processor that you chose) and 2% for currency conversion. Are you saying there is double currency conversion? How do we get to 4% in currency conversion fees?

 

[Marzio]

How do we get to 4% in currency conversion fees?

4% was a bulk calculation of total charges, it's more around 5% (2.9% + $0.3 +2%)

Depending on which currectly he charges his customers with he could save at least 2% in currency conversion.

Sorry for the confusion

 

[JustAnotherNomad]

From what I've heard, US LLCs are very easy to set up and you can easily open an account with Wise for example.
You could also consider a Canadian LP. I believe it has the least filing requirements of all three.