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Wyoming LLC - What solution for bank and paypal to avoid reporting to my local authorities?

kroken

New member
Im thinking starting Wyoming LLC for my digital business i will sell online and use paypal as gateway. im non-us. i dont know what is the best country to open it since i read the US paypal report to IRS over 20000USD? and what can be a good setup if i want to withdraw money to bank account or different bank accounts? i dont mind getting a pm with help how i can find the best setup.
 

Admin

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What is the business you are into. You may want to do a Google search on the forum to find similar threads with lot's of answers. It seems you know the forum rules so even you just registered you may not be new.

There is also a thread about New Mexico which I personally researching on as we speak. It sounds somehow better compared to Wyoming.
 

Gediminas

Offshore Tax Advisory
Mentor Group Gold
Commercial Service
Business Angel
Im thinking starting Wyoming LLC for my digital business i will sell online and use paypal as gateway. im non-us. i dont know what is the best country to open it since i read the US paypal report to IRS over 20000USD? and what can be a good setup if i want to withdraw money to bank account or different bank accounts? i dont mind getting a pm with help how i can find the best setup.
To give you the best solution you would have to provide a bit more information about your situation. What is your budget to set up your structure? What is your tax residency? Why the US? Who are your customers? What is your business exactly?
 

kroken

New member
my idea was to become a resident of philippines or other country, last years i travel and not staying in one country. i recieive around 20K every month. i was looking at estoninan company but there need to pay 20% tax.... looking for advice. what about paypal solution? i want to have a good setup for this.
 
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Admin

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Staff member
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Wyoming LLC owned by an foreigner and then PayPal.... hmmm not sure if this is going to work. I have seen a UK Ltd owned by a non resident in the UK open an account with PayPal and that worked temporary but got shut down after a few months.
 

GiGoGo

I make things happen
Silver Member
Wyoming LLC owned by an foreigner and then PayPal.... hmmm not sure if this is going to work. I have seen a UK Ltd owned by a non resident in the UK open an account with PayPal and that worked temporary but got shut down after a few months.
I have that working and I don't have problems. Maybe because I have an EU passport and the transactions are legit with 0% chargebacks
 

kroken

New member
I have that working and I don't have problems. Maybe because I have an EU passport and the transactions are legit with 0% chargebacks
you registered paypal with your name, business name and all legit information?
 

Admin

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I have that working and I don't have problems. Maybe because I have an EU passport and the transactions are legit with 0% chargebacks
aha, strange, after researching and asking PayPal they said it's not allowed, the system can also not handle it. I believe more that it is a policy PayPal has to comply to because of various International tax rules.

PayPal said, if you have a UK LTD you will need a UK UBO to apply for the account otherwise the account will not be fully verified and approved.

OH and yes, I hold a EU passport ;)
 

GiGoGo

I make things happen
Silver Member
aha, strange, after researching and asking PayPal they said it's not allowed, the system can also not handle it. I believe more that it is a policy PayPal has to comply to because of various International tax rules.

PayPal said, if you have a UK LTD you will need a UK UBO to apply for the account otherwise the account will not be fully verified and approved.

OH and yes, I hold a EU passport ;)
It's a US LLC with registered EIN, have no problems so far
 

Admin

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If that is the case I will try to get it fully verified for a Wyoming LLC , I assume it is the same for Wyoming and Alaska LLC - so let's see where this will go.
 

kroken

New member
what about the paypal? how can i get the money out? one also need to file a 5472 form with all information about the owner etc. im also open for other ideas here come on people =)
 

Wesker

New member
I have that working and I don't have problems. Maybe because I have an EU passport and the transactions are legit with 0% chargebacks
Even being 100% legit as an eBay seller it's very hard to maintain a 0% chargeback account due to scammers.
 

JohnSeed

Corporate Services
BANNED MEMBER
what about the paypal? how can i get the money out? one also need to file a 5472 form with all information about the owner etc. im also open for other ideas here come on people =)
why not use 2co so you will have creidt card processing and paypal in one basked and you don't have to worry about all the PP issues?
 

Admin

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Will look it up. 2co is better than 2checkout.com or are they same? not sure i have never used them..
they are the same.
 

kroken

New member
Another: what is considered doing business in the US? if i have webshop and selling digital goods and sell to one us customer? will this be consider doing business in US or not?

And if someone can for a good setup im willing to pay.
 

Sols

Entrepreneur
Another: what is considered doing business in the US? if i have webshop and selling digital goods and sell to one us customer? will this be consider doing business in US or not?
It's unfortunately not quite that simple. You might want to start here and familiarize yourself with ECI: Effectively Connected Income (ECI) | Internal Revenue Service There are more articles and resources available that explain ECI a in even more depth.

Furthermore, an LLC is normally considered a pass-through entity which itself is not taxed. That means the profits of the LLC become your personal income, which further muddles the waters with regards to ECI.

Enforcement of ECI for small businesses is lax or non-existent. It's not on the IRS' radar to pick up on a few thousand bucks sold to US customers through a foreign-owned LLC. But unless US customers are going to be a significant revenue source, you can do what many businesses do and simply not allow US customers.
 
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