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

What difference does it make to EU citizens where their income is generated and where their savings are kept?

What difference does it make to EU citizens where their income is generated and where their savings are kept?

Many of our readers wonder. Well, the truth is that the governments of the world have a common pattern and don't really care about the welfare of their citizens. Citizens care. That's true as far as it goes. But in the case of a LLC in the USA and a US bank account, there are fundamental exceptions and advantages:

  • The Limited Liability Company (LLC) in the USA is a 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 where you can look up the beneficial owners of an LLC.
  • US banks do not participate in the automatic Exchange of information (CRS) will participate.
  • Good selection of secure online banks with modern tools.
  • No sales tax liability, more favorable purchases for US companies.

Some differences compared to Europe:

  • High taxes for corporations with limited liability.
  • No data protection - disclosure of beneficial owners and publicly accessible registers.
  • No possibility to Company capital for private purposes.
  • Multiple taxation through corporate taxes and shareholders' income tax.
  • Depending 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.
  • Limited liability companies are subject to strict standards regarding share capital.

Conclusion:

For EU citizens, there can be clear advantages to generating their income through a Limited Liability Company (LLC) in the US and keeping their savings in a US bank account rather than setting up a company in the EU.

The main reasons for this are:

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

While companies in the EU are subject to strict regulation, high taxes and public traceability, the US LLC as an alternative offers more financial and legal advantages for EU citizens.

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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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