Can I run my US LLC from Europe? A comprehensive guide

In today's globalized world, where location-independent working is becoming more and more important, many entrepreneurs are asking themselves the question: "Can I run my US LLC from Europe?" This question is becoming increasingly relevant as more and more people discover the flexibility and opportunities that such a constellation can offer. In this article, we will dive deep into the legal, tax and practical aspects to consider when running a US Limited Liability Company (LLC) from Europe.

What is a US LLC?

Before we look at the specific challenges and opportunities, it is important to understand the concept of an LLC. A Limited Liability Company is a popular form of business in the United States that combines elements of a corporation with those of a partnership. It offers owners (also called "members") the protection of limited liability, similar to a corporation, while providing a more flexible management structure and potential tax advantages.

Legal basis

The short answer to the question of whether you can run a US LLC from Europe is yes, not only is it possible, but thanks to modern technology and specialized service providers like Digitalize Global, it's surprisingly easy and accessible. Here are the key legal aspects you should consider and how the process is simplified through online services:

1. FoundationThe LLC must be formed in a US state, even if you are located in Europe. Popular states for LLC formation are DelawareWyoming and Nevada, due to their business-friendly laws. Digitalize Global allows you to complete this process entirely online without ever having to step foot on US soil. You can complete and submit all the necessary forms from the comfort of your desk in Europe.
2. Registered AgentUS law requires that every LLC has a "registered agent" in the state in which it was formed. This is a person or company with a physical address in that state who can receive official documents for the LLC. Digitalize Global offers a reliable Registered Agent as part of their comprehensive service, so you don't have to worry about this legal requirement.
3. Management structureAn LLC can be either "member-managed" (managed by the owners) or "manager-managed" (managed by appointed managers). As a European resident owner, you can easily operate the LLC as member-managed. Digitalize Global will assist you in preparing the necessary documentation and advise you on the optimal structure of your LLC to suit your individual needs.
4. ComplianceEven if you run the LLC from Europe, you must comply with all US and federal laws and regulations. This includes annual reports, tax returns and other required filings. Digitalize Global provides comprehensive assistance in complying with these regulations, including reminders for important deadlines and help in preparing and filing the required documents.
5. Bank accounts and payment processingAn often overlooked but crucial aspect of running a US LLC from Europe is setting up US bank accounts and payment systems. Digitalize Global makes this process much easier by helping you set up accounts and online banking systems that you can easily manage from Europe, thanks to its experience with US banks.
6. Tax considerationsRunning a US LLC from Europe comes with complex tax implications. Digitalize Global works with experienced tax advisors to help you navigate international tax laws and ensure that your LLC is tax compliant in both the US and your European home country.

By using the services of Digitalize Global, the entire process of Formation and management of a US LLC from Europe considerably simplified. You get an all-in-one solution that covers all legal and administrative aspects, so you can focus on growing and developing your business without having to worry about the complex legal details. This modern, digital approach makes it easier than ever for entrepreneurs in Europe to take advantage of a US LLC and expand globally.

Tax implications

The tax aspects of running a US LLC from Europe are complex, but with the right structure and advice they can be managed effectively:

1. US taxesLLCs are taxed by default as "pass-through" entities, meaning that profits are "passed through" directly to the owners and taxed at their personal level. As foreign However, owners can elect to have their LLC taxed as a corporation, which can be advantageous in some cases.
2. Double taxation agreementMost European countries have double taxation agreements with the USA. These can help to avoid double taxation. Taxation but the specific rules vary from country to country. With a multi-member LLC and the right articles of association, it is possible to register the LLC in Europe as a simple self-employment (partnership) and thus only pay income tax. Digitalize Global can assist you with the structuring of your LLC to maximize the tax benefits.
3. FATCA and FBAR: Since the LLC a US bank account has, no further reports such as FBARs need to be filed. And since the LLC is a separate legal entity, the bank information is not reported to FATCA or CRS to foreign parties. This simplifies compliance considerably.
4. Local taxesDon't forget that you may also be liable for tax in your European country of residence. The exact rules depend on your specific country of residence. If you have set up a multi-member LLC and this as a partnership you will not pay any taxes other than income tax. Furthermore, if your company is not geared towards the US market and is not registered as a "Engaged in a Trade or Business in the United States" (ETBUS), you do not pay taxes in the USA. Digitalize Global can help you find the optimal structure for your specific situation.

Practical considerations

In addition to the legal and tax aspects, there are some practical considerations where Digitalize Global offers comprehensive support:

1. Time zone differencesRunning a US business from Europe can be challenging due to time zone differences. Digitalize Global offers solutions and strategies to effectively overcome this challenge, including recommending and setting up communication tools that facilitate asynchronous working.
2. Bank accountsOpening a US bank account for your LLC can be difficult if you are not physically present in the US. Digitalize Global helps you open accounts online with established US banks and helps you manage your US bank account smoothly without the need to travel to the US in person.
3. Digital toolsDigitalize Global provides you with a comprehensive suite of digital tools, ranging from CRM systems to fully-fledged e-commerce and intranet solutions. These integrated systems allow you to efficiently run your business remotely and manage all aspects of your business.
4. Network of specialistsInstead of having to build your own network of professionals, Digitalize Global provides access to a wide range of specialists, including US tax advisors, lawyers and local advisors in your European country. This not only saves Costsbut also ensures that you always have access to the latest expertise.
5. Compliance and reportingDigitalize Global takes over the continuous Monitoring and compliance with all relevant regulations and reporting obligations. This includes the preparation and submission of annual reports, tax returns and other required documents so that you can focus on your core business.
6. ScalabilityWith Digitalize Global's comprehensive services, your business is set up for growth right from the start. You can easily enter new markets or adapt your business model without having to worry about the underlying infrastructure or legal complexities.

By using the services of Digitalize Global, the practical challenges of running a US LLC from Europe are significantly reduced. You get an all-in-one solution that allows you to focus on the strategic development and growth of your business while all operational and legal aspects are professionally handled. This comprehensive support makes it easy for European entrepreneurs easier than ever to take advantage of the benefits of a US LLC and be successful globally.

Examples from practice

To illustrate the feasibility and challenges of running a US LLC from Europe, let's look at two examples:

1. Tech startup: Maria, a software developer from Germany, founded a software LLC in Delawareto launch its app on the US market. It uses a Digitalize Global Registered Agent service, and has its accounting handled by Digitalize Global. She uses digital banking solutions. Her biggest challenge is the time difference when communicating with US customers.
2. E-commerce company: Pierre, a French entrepreneur, runs a business in LLC in Wyoming for his e-commerce business. He sells products to US customers via Amazon FBA. Pierre has a US-based fulfillment partner and uses cloud-based accounting software. His main challenge is keeping up with the changing US tax laws for online sales.

Conclusion

Running a US LLC from Europe is entirely possible and offers many advantages, especially for entrepreneurs looking to enter the US market. However, this requires careful planning, a good understanding of legal and tax obligations and the use of the right tools and resources. You can also leave all of this to Digitalize Global and focus on what you have more experience in: Your business.

With increasing globalization and the trend towards remote working, this type of business management is likely to become even more common. However, it is important to be aware that the rules and regulations may change and that individual situations vary.

Ultimately, running a US LLC from Europe can be a rewarding experience, giving you access to one of the largest markets in the world while enjoying the benefits of living in Europe. With the right preparation and support, you can overcome the challenges and capitalize on the opportunities that this unique business constellation offers.