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Optimize your taxes with an LLC: our corporate services in the US

calendar 9/6/2020 8:00:00 AM
author Admin System
Even in a globalized world, the US continues to be the unrivaled political, cultural, and economic center of the planet. Even with China’s rivalry, the impact of the US in the West and the whole planet is deeply felt.

Thus, if you have a business that intends to go global, it is only natural that the US is one of the first places that comes to your mind.

The US is the business center of the planet. It has relatively easy access to the Latin American market, the European market, and the Far East market.

The US has been considered the leader of the free world since WW2. That is why it’s one of the freest economies on the planet (17th) and one of the easiest places to do business in the whole world (6th).

It’s a must for you if you’re seeking to expand your business.

But you may also say: hey, my business is small, I’m not thinking about an expansion, or maybe for whatever reason you’re not that interested in doing business in the US.

Still, it’s perfectly reasonable to establish a corporate structure in the US for banking, asset protection, and tax planning purposes.

Many foreign countries don’t have good corporate banking solutions, so it’s a good decision to establish an American LLC to open a corporate bank account. The same applies with tax planning, as the US isn’t a CRS jurisdiction and taxes are somewhat lower than many OECD countries. The best purpose for American citizens, aside from trading itself, is asset protection and using an LLC as a holding of varied companies as they bring added levels of secrecy and civil protection for your business and assets.

Many businesspeople face such dilemmas that generally leave them with two options: setup a structure and keep their money in the USA or go out of business. 

The US has the best banking system in the planet alongside Switzerland. It’s not a member of the CRS, which means American banks don’t immediately report your financial information to foreign tax authorities. And the easiest way to get an American bank account for your business is through the incorporation of an LLC.

Moreover, the US is a federal state. That means every state has a certain degree of independence, which allows them to approve different commercial and corporate laws. Thus, certain states in the US are way more tax-efficient and allow a higher degree of asset protection and fewer requirements for your corporate structure.

All this means an LLC in some states of the US can help you protect your assets from claimants and creditors.

It’s one of the top options from a shared legitimacy and benefits perspective we can offer you out there.

 

Why America? Five reasons to establish an LLC in the US

 

The most important market in the world

Simple as that. The US is the largest economy on the planet, and, by far, the most influential one. Doing business in the US opens unparalleled options for you that are nowhere to be found in the rest of the financial world.

Tax planning

A single-person LLC is considered tax-transparent by the IRS (Internal Revenue Service). That means your LLC’s income and expenses are not taxed on the corporate level, but on the personal level, meaning they need to be reported on your individual return. This eases the tax filing process as you’ll only have to file one tax return.

Moreover, some states in the US also apply state income tax. Establishing an appropriate corporate architecture with an LLC in a proper jurisdiction where such taxes don’t exist will also optimize your taxation.

Liability and asset protection

One-person LLCs, also known as disregarded entities, are not considered a separate legal person from the owner for tax purposes at the federal level. Nonetheless, at a state level, disregarded entities remain a different legal person from the owner. Thus, assets owned by the LLC add an extra layer of protection of your assets from claimants and creditors.

Enhanced anonymity

We’ll talk about this in detail ahead, but there are certain states, especially Delaware, Nevada, and Wyoming, that are usually high on the lists of where to incorporate an LLC.

They generally have little-to-none business taxes, including capital gains tax, such as Nevada. In fact, Nevada doesn’t even have an information-sharing deal with the IRS, and it also permits anonymity in public filings. Wyoming allows the legal owner of shares or stocks to remain anonymous while being represented by a proxy.

All this allows for better asset protection and the anonymity you may want when doing business.

Terrific banking system

Probably only Panama and Switzerland can rival the US banking system. Opening an account is relatively simple, but if you wish to open it for your business, the best way to go is to incorporate a company, preferably an LLC, in the US. The US isn’t a member of the CRS, which means it doesn’t automatically disclose your financial information to foreign tax authorities. That is a fantastic opportunity for foreigners incorporating a business in the US. Also, establishing an LLC in a renowned jurisdiction, such as Delaware, as a holding is an excellent option for American citizens with different businesses in the US and abroad.

 

What is an LLC?

A limited liability company (LLC) is probably the best-known and most-used corporate structure in the whole world. The structure was created in Wyoming in the 80s but was quickly established in all US states and the world. An LLC is a beneficial corporate structure because it incorporates the best of both worlds. It is a separate legal person from its owners, such as a corporation, yet owners are only liable to the extent of their contribution, as in a limited partnership.

The best benefits corporate structures can provide is limited liability and pass-through taxation.

S corporations and limited partnerships offered that in the US, but with certain disadvantages. That’s why we say LLCs are the best of both worlds. They come with the benefits of those structures, but without the drawbacks.

As the US is a federal state, LLC legislation varies. However, most states don’t have restrictions over LLC ownership, meaning the owners of an LLC can be:

  • Individuals
  • Corporations
  • Other LLCs
  • Foreign individuals or companies

Also, there’s not a limit on the number of owners an LLC may have, and almost all US states allow single-member LLCs.

All this makes LLCs an amazingly flexible business structure. Basically, any business venture, with few exceptions such as banks or insurance companies, can be an LLC. It generally allows an indefinite number of owners, can be used for tax planning purposes and is civilly considered a separate legal person from its owners, meaning it can also be used for asset protection.

Thus, LLCs are of two types:

  • Single-member LLCs, also known as disregarded entities, which for federal income tax purposes are not considered a separate person from its owner.
  • Multiple-member LLCs, which are automatically considered partnerships for federal income tax purposes, but the status can be changed to a corporation.

 

Forming an LLC

LLCs are legal entities created under a state’s law. That means each state has different regulations for LLCs.

For an LLC to legally operate in a determined US state, they require (at least in most of them):

  • A registered agent.
  • A registered office (it doesn’t necessarily have to be in the state of formation of the company).

Now, the fact that the US is a federal country means the process to form an LLC also varies from state to state. But, generally, it will take about four days and five steps:

  • Reserve the company name and file the articles of organization and operating agreement (the operating agreement isn’t always a requirement, but is a good practice) with the state’s secretary of state (it can generally be done online).
  • Apply for the federal identification number for tax and employment purposes (online).
  • Register for the state sales tax.
  • Register as an employer with the state’s labor department.
  • Arrange for publication and send the certificate and affidavits of publication.

 

What are disregarded entities?

Now, if you wish to establish an LLC that’s not necessarily only for trading business, but also for asset protection, tax planning, or banking purposes, you can establish a single-member LLC, also known as disregarded entity.

As we said, for income tax purposes, it won’t be considered a separate person from its owners, meaning that all income, losses, and tax credits and deductions must be added to your personal tax return.

But, again, that’s only for incometax. From a liability perspective, it will be considered a separate legal person, which means that any assets you put under the name of the LLC will receive additional protection.

That also means an LLC must file payroll, employment, and excise taxes.

Thus, you, as an owner, are not considered an employee of the LLC, but if you hire other employees, you must file payroll taxes for them.

Also, even if it’s not required or your LLC isn’t directly dedicated to the trading business, it is a good idea to establish an operating agreement for the following reasons:

  • It supports the fact that the LLC is a separate person from the owner.
  • If the owner dies or transfers the LLC to different heirs, he can turn it into a multi-member LLC. An operating agreement can help to prevent a conflict in such a situation.
  • An operating agreement can state a member or manager is authorized to do transactions with third parties.
  • Creditors will be more attentive if they see an operating agreement that lists the property contributed to the LLC.

 

Where should I establish an LLC?

As usual, it depends on your intention and the nature of your business. But there are some clear reasons why certain states are better.

For example, Wyoming and South Dakota don’t levy a corporate tax, while Arizona, Colorado, Florida, Kentucky, Mississippi, Missouri, North Carolina, North Dakota, South Carolina, and Utah levy less than 10 %.

However, in most lists, three states usually top them: Delaware, Nevada, and Wyoming. Let’s see why.

 

Delaware

This state is, by far, the most popular for LLCs. It has a strong pro-business reputation, with a simple and uncostly filing process. Delaware only taxes locally-earned income, and it has low franchise taxes. The Chancery court hears business cases and resolves such cases surprisingly swiftly and soundly.

 

Nevada

Nevada doesn’t levy corporate, capital gains, franchise, or inheritance tax. You’re not required to file an operating agreement, and the state doesn’t have an information-sharing arrangement with the IRS. Nevada is the best choice for those looking for privacy, as it allows for anonymity in public filings.

 

Wyoming

Wyoming is also a popular choice as it doesn’t have an income tax or franchise tax. It was the state where LLCs were created and it has fantastic anonymity benefits, such as allowing you to appoint a lifetime proxy, which is someone that represents your stock and shares, and voteson your behalf, allowing you to remain anonymous.

 

Who are we, and what can we do for you?

Along with NTL, we have 25 years offering top corporate solutions for high net worth individuals, investors, and family offices all over the world.

In this time, we’ve built an unparalleled network of experts and partners to offer the best investment, financial, banking, corporate, and immigration services for our clients.

Thus, it is only natural we offer you top corporate services in the business center of the world:the United States.

We can help you establish and operate an LLC in the US. We can offer our experienced advice regarding which is the best state for your type of business and your financial goals.

 

Why choose us?

  • We have insider knowledge needed to help you set up your LLC swiftly and in a tax-optimized way.
  • We protect your data. We don’t share it with third parties.
  • We can offer our registered agent services. That means you don’t have to worry about that requisite for establishing your LLC in a different state. We’ll be accepting all mail and tax notices for your business. Thus, we locally scan all documents we receive from your business, offer on-the-ground advice, and annual report compliance.

Whenforming an LLC with us, you’ll receive:

  • Tailor-made articles
  • Initial resolutions
  • Operating agreement
  • LLC membership certificate
  • One year of registered agent service

The operating agreement or bylaws we prepare for you won´t have any hidden fees. It will include the following information:

  • Corporate office address
  • When and how you’ll set shareholder meetings and decide locations
  • Notices
  • Special meetings
  • Voting records
  • Book transfers
  • Proxies
  • Actions
  • Stocks, shares, bonds, and dividends
  • Shares
  • Board of directors, executive committees, and removal of directors

 

Our corporate services in the US in a nutshell

  • Formingan LLC or corporation in the US.
  • Advising regarding the best state where to open your company.
  • Preparing the articles and bylaws/agreement of your company.
  • Local registered agent services.
  • Annual report filing.
  • Opening a corporate bank account.
  • Legal representation in contracts, negotiations, license agreements, labor affairs, and more.
  • Accounting services.
  • Tax planning and tax return filing (both state and federal taxes).

The US is the economic center of the world. It has one of the best banking systems, and almost all major businesses in the world are present in the country. That’s why we offer top corporate services to help you start your trading business or a corporate structure for asset protection, banking, and tax planning purposes in the US. Enquire now  and establish a company in the US.

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