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An interview with LLC founder

Interview with LLC founder

Below you will find an interview with an LLC founder who wishes to remain anonymous.

Can you tell us about your decision to set up an LLC company in Wyoming, USA, as an EU citizen?

For me as an EUCitizens and monthly varying income, the establishment of a LLC in Wyoming, USAThe best option to secure my livelihood in the long term. The LLC structure offers the advantage of limited liability, which is particularly important as in the EU the risk of lawsuits and overwhelming bureaucracy can threaten the existence of many companies. I didn't have the financial resources for expensive lawyers, but I still wanted to appear professional like a serious company. There were certainly competitors who had their eye on me and were keen to undercut me.

What advantages do you see in founding an LLC in the USA compared to other legal forms or locations?

Choosing an LLC gave me numerous advantages over other options. Whereas in the EU, high taxes and social security contributions would have placed a heavy burden on my financial resources and would have been too high for a Limitation of liability the normal Independence However, as a company that does not appear very serious to customers, setting up an LLC in the USA opened up the possibility of saving my income more effectively and running my company with fewer bureaucratic hurdles. In addition, a Company foundation greater freedom outside the EU. The LLC structure in the USA brought considerable administrative simplifications compared to setting up a company in the EU. The formation formalities were significantly less complicated and less expensive. In addition, there were no ongoing accounting and reporting obligations during the start-up phase, which saved me an enormous amount of work and costs as a sole trader.

I would actually rate it as stress-free, but it should be mentioned that I founded the company using a Founding agency and not independently.

Can you tell us more about how anonymity works with an LLC in Wyoming and how it affects your business?

The Anonymity of an LLC, especially in Wyoming, is ensured by registering a registered agent as a director instead of the founder. This practice is extremely practical if, for example, you want to keep your own name in the background, mainly after insolvency or to keep the competition at bay.

Tax optimization was the decisive factor for me. And not every customer needed to know that I was working alone in the company. Setting up an LLC in the USA allowed me to grow slowly without having to give up all my income immediately, which would have jeopardized my professional existence and thrown me back into unemployment.

What role did the unrestricted use of company funds play in your decision to form an LLC?

The unrestricted use of Company funds was another important aspect of my decision to form an LLC. I had a main account for business activities and a separate sub-account from which I could also pay for food or software such as Photoshop. While in the EU certain legal requirements and restrictions would have affected my business decisions, the LLC structure in the US allowed me more flexibility and control over my business activities. The separate sub-account for personal expenses brought significant tax advantages. Since living expenses are considered business expenses in the US, I was able to virtually deduct these costs. tax-free from the company's profit. In the EU, these expenses would have had to be paid from already taxed private assets.

Although founding a company in the USA was an optimal solution for my financial situation, I also considered other options. One Company foundation in the EU might have allowed easier access to certain contracts, but the higher tax and maintenance costs could have jeopardized my financial stability.

What experiences have you had with the banking system in the USA, particularly with regard to the automatic exchange of data with other countries?

My overall experience with banking in the US was positive and supported my decision to form an LLC. And nothing has changed so far!

How did the fact that US banks do not have automatic data exchange with other countries influence your decision to set up an LLC in the US?

The fact that US banks none automatic data exchange with other countries gave me the opportunity to build up my business step by step. In the early stages, I was able to keep my earnings in the company, which gave me the liquidity I needed to start my business successfully. Once I had earned enough, I was able to use the services of a tax advisor to fulfill my tax obligations correctly.

Founding an LLC in the USA was also a strategic decision to protect my business interests in the long term. The legal and economic framework in the USA offers a stable basis for entrepreneurial growth and development. In some cases, a US company enjoys even greater trust in the creative industry than an EU company.

Can you tell us more about how tax collection works for cross-border services in the US compared to the EU and how this benefits your business?

The handling of taxes at cross-border services in the USA was another important factor in my decision. Compared to the EU with its complex tax rules and high tax rates, the US tax policy offered me a simpler and more transparent solution. It is not mandatory, Value added tax from EU customers if you have a US company.

What advice would you give to other EU citizens who are thinking about setting up an LLC in the US, especially with regard to the issues mentioned above?

My advice to other EU citizens with similar financial challenges, primarily in the creative industry, is clearly to consider US LLCs and to consider incorporating in the US. My urgent advice to other EU citizens is to very seriously consider the benefits of a US LLC - mainly the aspects of limited liabilitylow fees, high flexibility in the use of funds and the advantage of a good reputation. These factors can be of existential importance, especially for sole traders and freelancers in the creative industry.

Is there anything else you would like to share with our readers about your experience of setting up an LLC in the USA?

In conclusion, I would like to say that setting up an LLC in the USA can be a brave decision, but it can pay off in the long run. In the beginning, I was a little skeptical whether it was really that easy and good to incorporate in the US, but after 3 years I can say it absolutely was! This step has changed my life positively and opened up new opportunities for professional and personal growth. Thanks to this decision, I have come out of unemployment, pay my taxes in my current Control seat and can also afford other expenses. The LLC structure allows me to present myself professionally, attract large customers and gives my one-man business the reputation and credibility of a large company.

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Disclaimer: Please note that the above dates, tax rates and regulations may change over time. Do not make any independent decisions without first consulting an expert for your individual situation. It is in your interest to always receive individual information from an experienced expert who knows your situation.

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