Tax exemption and flexibility in dealing with company capital: US-LLC

The advantages of a US LLC for international entrepreneurs

The formation of a US Limited Liability Company (LLC) offers international entrepreneurs, especially EU citizens, numerous advantages. Whether it's tax relief, global reach or the protection afforded by limited liability, a US LLC is an attractive option for business people looking to expand their activities internationally. This article looks in detail at the key benefits of a US LLC and the reasons why it is an excellent choice for international entrepreneurs.

Tax exemption for international entrepreneurs

One of the biggest advantages of a US LLC for non-US citizens is the possibility of tax exemption. Profits that are not derived from US sources (ETBUS) remain tax-free. This allows international entrepreneurs to maximize their earnings and be flexible with company capital without having to worry about extensive tax obligations in the USA.

No minimum capital for the foundation

Another major advantage is that no minimum capital is required to establish a US LLC. This significantly lowers the barriers to entry and also enables smaller entrepreneurs to set up a company in the USA without major financial obligations.

No corporation tax and trade tax in the USA

A US LLC that does not conduct business in the USA is not subject to corporation tax or trade tax. This significantly reduces the tax burden and makes the US LLC a cost-effective and tax-advantageous form of company.

Possible registration of the LLC in Europe as a sole proprietorship

Another advantage for EU citizens: the LLC can often be registered in Europe as a simple sole proprietorship. This means that only income tax is payable on your own income from the LLC, which offers tax and administrative relief.

Protection against the automatic exchange of information (AEOI)

The USA is not part of the CRS system for the automatic exchange of financial information (AEOI) and LLC accounts are not affected by the FATCA agreement. For EU citizens, this means that their US LLC is not subject to the strict EU-wide financial reporting rules, which offers additional financial and administrative advantages.

No control by the EU financial authority

The US LLC is not subject to control by EU financial authorities, which means that entrepreneurs can conduct their business without the strict requirements of EU regulations.

No double-entry bookkeeping necessary

The formation of a US LLC simplifies bookkeeping considerably, as no double-entry bookkeeping is required. Entrepreneurs only pay income tax on profits that are distributed to them or on the salary that they pay themselves from the LLC.

Global reach and independence of residence

A US LLC can be established and operated from anywhere in the world. This flexibility enables EU citizens to conduct global business regardless of their place of residence. A US address also gives the company greater credibility and makes it easier to establish international business contacts.

Limitation of liability and protection of private assets

A key advantage of the US LLC is the limitation of liability. The owners are not liable for company debts with their personal assets. This offers additional protection and enables entrepreneurs to take greater business risks without fearing personal financial disadvantages.

Discretion and anonymity

The formation of an anonymous LLC offers maximum discretion. There are no comprehensive disclosure requirements in the USA, which is particularly attractive for entrepreneurs who value privacy. The simple formation and minimal reporting requirements add to the appeal.

Conclusion: Why a US LLC makes sense for EU citizens

The advantages of a US LLC, especially for EU citizens, are manifold. Tax exemption, no minimum capital, protection from the AIAno double-entry bookkeeping and independence of residence make the US LLC an ideal corporate structure for international entrepreneurs. Would you like to find out more about legally establishing a US LLC as an EU citizen? We will be happy to help you.

FAQs

What is a US LLC?

A US LLC (Limited Liability Company) is a corporate structure that offers the owners limited liability and fiscal offers advantages, especially for non-US citizens.

How to benefit from the tax exemption of a US LLC?
As long as the income does not come from US sources, it remains tax-free, which enables entrepreneurs to use and reinvest their company capital efficiently.

What are the advantages of the USA not participating in the AIA?
Non-participation in the automatic exchange of information means that no sales tax is paid on international transactionswhich reduces the financial burden for entrepreneurs.

How flexible is a US LLC with regard to the domicile of the owner?
A US LLC can be established and operated from anywhere in the world, giving entrepreneurs maximum flexibility.

What kind of protection does the limitation of liability of a US LLC offer?
The owners of a US LLC are not personally liable for the debts or obligations of the company, which protects personal assets.

Why is discretion important with a US LLC?
Discretion and anonymity offer entrepreneurs a protected framework in which to conduct their business without extensive disclosure obligations.

Summary

Overall, a US LLC is an excellent choice for non-US citizens who are looking for a location that offers favorable conditions for their business, international expansion and protection of their personal interests.

Now decide on a total anonymous LLC formationor a Normal LLC formation!