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

kroken

New member
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.
yes other option is to use PayPal from another country but I need some paper to open business account or registered company. seems PayPal in us won't accept only EIN for registration
 

ivan1911

New member
You can sell to USA people as long as the 'service' is provided outside of USA.
Further more you mush not have 'significant' presence in USA , like people who work almost exclusively for you ...

So if you are not from USA , and provide digital service from outside of USA you are safe.

This is according to a few cpa who I talked to..
 

mange38

Entrepreneur
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.
Interesting: UK LTD company, bank account, registered address, PayPal business account & non-resident director

"So, I spoke to PayPal UK support today, and they state that there is no problem for a director of a UK company to be non-resident in the UK and to continue to manage the company PayPal account. You need to update your residential/home address with Companies House, and then do the same with your residential/home address held by PayPal."

Maybe they changed the rules?
 

Admin

Forum Moderator
Staff member
Maybe they changed the rules?
If they have all is good, I will take this link to PayPal in my country and ask them to activate the UK PayPal account we have opened for some time ago but which they don't wanted to verify nor accept.

Thank you very much for this information, let's hope it will help. My fear is that they will say it is different from country to country, but lets see.
 

kroken

New member
okay Will call PayPal and see that they say. For banking options tw and payoner don't accept my business. Did anybody try Mercury?

Interesting: UK LTD company, bank account, registered address, PayPal business account & non-resident director

"So, I spoke to PayPal UK support today, and they state that there is no problem for a director of a UK company to be non-resident in the UK and to continue to manage the company PayPal account. You need to update your residential/home address with Companies House, and then do the same with your residential/home address held by PayPal."

Maybe they changed the rules?
What exactly does this mean?

"You need to update your residential/home address with Companies House, and then do the same with your residential/home address held by PayPal."

I don't get what to update, I know PayPal is country specific and if you open a us account you can only add us address to it?
 

iloveyouguys

Active Member
You can sell to USA people as long as the 'service' is provided outside of USA.
Further more you mush not have 'significant' presence in USA , like people who work almost exclusively for you ...

So if you are not from USA , and provide digital service from outside of USA you are safe.

This is according to a few cpa who I talked to..
What if all your customers are US people and you hire 1000 part time US people to sell your products? You still owe 0 tax to the IRS?
 

ivan1911

New member
What if all your customers are US people and you hire 1000 part time US people to sell your products? You still owe 0 tax to the IRS?
I think in that case you have 'significant' US presence and you will have to pay tax. You should check with certified CPA , I asked for my specific situation...
Further more a part of your operation is based in USA ... So I think there's slim chance you wouldn't get taxed.
 

tevalerie

New 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.
It might be better to just open an account at Bank of America.. but that can't be done virtually. He would have to present an EIN number.
 

challenge

Trusted
Damn they are still doing this????
I agree it already happened to me in past with US LLCs and EU shareholders. They started doing this since maybe 2 years once OECD and EU started to clamp things. Try everything you can to not use paypal, at least not directly. They will limit the account or block the funds and ask for lots of papers... and it's going to take months to free the funds.
 

unicorn

Active Member
I was told that paypal doesn't care much as long as montlhly amounts coming in at paypal / being transfered to a personal bank account do not exceed 9999 euro per month, as everything about 10.000 euro per month is reported. Is this information not correct ?
 
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