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US non-domicile LLC (Limited Liability Company)

Non-domicile LLC (Limited Liability Company)

What is a non-domicile LLC?

A non-domicile LLC (Limited Liability Company) is a US company form with limited liability. It is similar to a Non-Domicile Ltd. (IBC) is registered in a country in which neither the owner nor the business activities are located. This corporate structure combines the Liability protection of a corporation with the tax treatment of a partnership.

Advantages of a non-domicile LLC

  • Tax exemption for non-US income
    Income from non-US sources is not taxable for a non-US resident. USA resident director tax-free. Instead, the income is taxed as private income in the country of the director.
  • Independence of residence
    A non-domicile LLC can be founded by a director who resides outside the EU and the USA. The location of the director is irrelevant.
  • Limited liability
    The LLC offers a Limitation of liability for their owners, which means that they are not personally liable for the debts or obligations of the LLC.
  • No control and enforcement of VAT payments to EU countries
    Due to its national legislation and potential problems with double taxation for American citizens, the USA has so far refused to grant the AIA to join.
  • Larger Anonymity the owner
    A non-domicile LLC offers its owners greater anonymity than many others Corporate forms.
  • More flexible corporate structure
    The corporate structure of an LLC is flexible and subject to less stringent regulations than in other countries.
  • No automatic data exchange
    US banks are not obliged to automatically exchange data with the EU and the rest of the world.
  • International recognition and trust
    The LLC as Type of company enjoys worldwide recognition and trust.

 


Cost comparison in (USD)

The standard fees normally incurred for the formation and operation of an LLC may vary. Special cases and additional services are not included

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LLC basic knowledge

Is it a non-domicile company?

Yes, a Limited Liability Company (LLC) can function as a non-domiciliary company if it is formed in a state/country other than the one in which it operates.

International recognition

The LLC as a legal form is recognized in most countries, although local regulations and requirements may vary.

Dissolution or liquidation

The rules for dissolving or liquidating an LLC vary by state. Generally, the LLC must pay its debts and liquidate its assets before it can be closed.

Corporate structure and managing directors

An LLC must have at least one managing member. The managing members have decision-making authority for day-to-day operations, while the members own the LLC and have the right to profit distributions.

Incorporation by foreigners and registered agents

In principle, any foreigner can register a non-domicile LLC in the USA. In most states, a "registered agent" is required who is resident in the state and can accept legal documents on behalf of the LLC.

Accounting and reporting obligations

An LLC must ensure proper accounting and reporting for tax purposes. This usually includes recording income, expenses, profits and losses.

Legal entity and limitation of liability

An LLC is a legal entity that is considered a separate legal entity and provides limited liability for its owners.

Share capital

In most states, no minimum share capital is required to form an LLC.

Formation costs

The cost of forming an LLC varies by state and service provider. General costs include the filing fee for the LLC and, if applicable, costs for legal advice.

Corporate or trade tax liability

An LLC is not classified as subject to corporation tax in the USA. Instead, it is treated as a "pass-through entity", which means that the income is transferred to the individual members of the LLC.


Tax regulations for a non-domicile LLC

Income tax

The income of an LLC is considered the income of the individual members, who must report it on their personal tax returns.

Social security contributions

Social security contributions must only be paid for employees resident in the USA. These contributions include the Social Security Tax, Medicare Tax and the Federal Unemployment Tax.

Conclusion

The formation of a non-domiciliary LLC in the USA offers an attractive opportunity for non-USCitizensto structure their business activities and benefit from the various advantages of this type of company.


FAQs

Can an LLC be formed in any US state?

Yes, an LLC can be formed in any US state, although the specific requirements and fees vary by state.

What are the tax obligations for a non-domicile LLC?

The income of the LLC is regarded as the income of the individual members and reported in their personal tax returns. There is no tax liability in the USA for non-US income.

Is a Registered Agent required for each LLC?

Yes, most states require a Registered Agent who can accept legal documents on behalf of the LLC.

How is the anonymity of the owners guaranteed?

The anonymity of the owners is guaranteed by the corporate structure and the lack of disclosure obligations to international authorities.

What advantages does the LLC offer compared to other forms of company?

The LLC offers a flexible corporate structure, limited liability, tax advantages and greater anonymity compared to other forms of company.

Are there special requirements for foreign owners?

Foreign owners must observe the respective regulations of the state in which the LLC is formed. A registered agent is required and tax obligations in the home country of the owners must be taken into account.

Summary

The U.S. does not offer a federal option for non-domiciliary LLCs, but some states such as Delaware, Nevada, Wyoming, New Mexico and Florida allow the formation of LLCs by foreign persons. Overall, the formation of a non-domiciliary LLC in the USA offers an attractive opportunity for non-US citizens to structure their business activities and benefit from the various advantages of this form of 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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