US companies (LLC) for EU citizens, is there really a difference to EU companies?

The differences and comparison US / EU companies

What difference does it make to EU citizens where their income is generated and where their savings are kept? Many of our readers are wondering this. In the case of an LLC in the US and a US bank account, there are basic exceptions and advantages:

• LLC in the USA:
  • Corporation with limited liability.
  • Highest data protection standards.
  • Pass-through taxation (profits taxed as private income).
  • No corporation and trade tax.
  • Capital may be used for private purposes.
  • Low annual franchise license fee (approx. 50-500 dollars).
  • Formation without share capital.
  • Worldwide acceptance as a legitimate company.
  • Independence from the owner's place of residence.
  • Foundation possible with only one member.
  • No open registers for beneficial owners.
  • US banks do not participate in the automatic exchange of information (CRS).
  • Good selection of secure online banks with modern tools.
  • No sales tax liability, more favorable purchases for US companies.

Comparison with Europe:

• High taxes for corporations with limited liability.
• None Data protection - Disclosure of beneficial owners and publicly accessible registers.
• No possibility of using company capital for private purposes.
• Multiple taxation through corporate and income tax.
• Dependence on place of residence - EU citizens only.
• High Costs for accounting and tax advice.
• Frequent company audits.
• Strict regulation by financial authorities.
• Strict control through data exchange between EU countries and AMLA.
• Strict standards regarding share capital.

Advantage for EU citizens:

For EU citizens, there can be clear advantages to generating their income through a Limited Liability Company (LLC) in the USA and to transfer their Keeping savings in a US bank accountinstead of setting up a company in the EU.

The main reasons for this are:

• More privacy and data protection due to the lack of a public register of owners and no participation in the automatic exchange of information.
• Lower tax burden through pass-through taxation and avoidance of corporation tax.
• More flexible access and use of capital for private purposes.
• Significantly lower bureaucratic hurdles and costs for founding, accounting and regulation.
• Global acceptance and independence from residence within the EU.

Companies in the EU are subject to strict regulation, high taxes and public traceability, while the US LLC is an alternative more Financial and legal advantages offers.