USA Federal states: A buffet of lucrative business opportunities for foreigners

Formation of a Limited Liability Company (LLC) in the USA as a foreigner

Attractive options for foreign entrepreneurs

The United States offers entrepreneurs from abroad a variety of attractive options when it comes to setting up a Limited Liability Company (LLC).

No VAT and no automatic exchange of information

Due to national legislation and potential double taxation problems for US citizens, the USA has so far refused to participate in the AEOI (Automatic Exchange of Information). As a result, US banks do not exchange data with foreign authorities on accounts held by non-US citizens in the USA. In addition, the International sales tax regulation not for the USAwhich makes double taxation agreements for US LLCs superfluous.

Simplified administration without VAT

This means that for US limited liability companies (LLCs), the Payment of sales tax not requiredas international VAT regulation is virtually non-existent for the USA and the USA is not part of the automatic exchange of information (AEOI). This means that it is not necessary to enter into double taxation agreements, which simplifies administration for US LLCs.

Lucrative locations for foreign LLC formations

Each state has its own advantages - from favorable tax regimes to a high degree of legal certainty. Let's take a look at some of the most lucrative locations for foreign LLC formations:

Delaware: The gold standard

• Renowned legal system with a high level of legal certainty
• No corporation or income tax on LLCs
• Annual franchise fee of $300
• High degree of flexibility

Application examples:

• Technology start-ups that want to benefit from the advanced infrastructure and access to venture capital
• Companies with high protection requirements for intellectual property, as Delaware provides a strong legal framework

Wyoming: Maximum discretion

• No income, wealth or inheritance tax
• No corporation tax or other taxes on LLCs
• Annual fee of only $50 for LLCs
• Extremely high anonymity of the shareholders (Anonymous foundation)
• Strong legal protection for entrepreneurs

Application examples:

• Companies that place particularly high value on confidentiality and discretion, such as asset management companies or financial service providers
• Company founders who set up an LLC as Holding for their international business

Nevada: Tax haven

• No income or corporation tax or other taxes on LLCs
• Annual franchise fee of approx. $500
• High degree of shareholder discretion and anonymity (anonymous formation)
• Simple management and administration

Application examples:

• E-commerce companies that want to benefit from the favorable tax conditions
• Trading companies that transport goods to, from or via the USA

New Mexico (Santa Fe): Attractive business environment

• No corporation tax or other taxes on LLCs
• Annual registration fee of only $50
• Low administrative effort
• Well-developed infrastructure and international flair in Santa Fe

Application examples:

• Real estate investors who want to benefit from the tax advantages and the legal system
• Companies attracted by the attractive infrastructure and dynamic environment in Santa Fe

What are franchise fees and annual fees?

What do "annual franchise fee" and "annual fee", etc. mean?