Advantages of a U.S. LLC for Foreign Owners - Including NO U.S. Taxes

Learn about the advantages of setting up a U.S. LLC as a foreigner-including no U.S. taxes.
U.S. LLCs are cost-effective and offer superior benefits when compared to alternatives, like, BVI, Cayman Islands, and Nevis companies.
If you have questions about a U.S. LLC you already own or are interested in setting one up, contact us at esquiregroup.com/contact/ or email us at [e-mail].
In this video you will learn about:
What an LLC is
1. The different ways in which an LLC can be taxed (disregarded entity, partnership, or corporation)
2. How as a foreigner you can conduct business and own assets through a U.S. LLC without paying any U.S. income taxes
3. All the advantages U.S. LLCs offers their foreign owners
We also created this helpful “U.S. ENTITY INFORMATION GUIDE” so you can learn about the various U.S. entity types, including LLCs, their tax treatment, and the ADVANTAGES and DISADVANTAGES of each.
DOWNLOAD THE GUIDE here: esquiregroup.com/foreign-inve...
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Hi! I am Jimmy Sexton, LL.M. - Founder & CEO of Esquire Group. I founded Esquire Group with the objective of helping and inspiring wealthy families, investors, entrepreneurs, and high-level executives obtain and gain control over and protect their wealth, via strategic wealth planning.
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-------------------------------------------------DISCLAIMER-------------------------------------------------------
This video is prepared for educational purposes only. This video is not legal, tax or any other type of advice. Each individuals’ circumstances are different, you should seek legal and/or tax advice to address your specific situation and any questions you may have.

[@HKAguides]

Great info, thanks for the sharing.

[@AmazingVideos-wk6kz]

What a great video. It has cleared all of my questions. Stunning

[@esquiregroup]

Glad it was helpful!

[@ndemir07]

Thank you for the great video! I have a question: In the case of a French citizen (foreigner) forming LLC in US, and providing wine-tours in France to Americans, if the LLC has one employee in US for marketing and customer support, would the company paying all its taxes in US, or would the owner be still liable for taxes in France?

[@esquiregroup]

It is possible that taxes are payable in both countries. This is a bit of a complex situation as the tax treaty between France and US could change the standard tax treatment. Additionally, we need to take a careful look at how the US employee is employed and what their specific duties are. The best thing to do would be to set up a consultation with me so we can sort this out. You can email us at [e-mail] to set up a consultation.

[@mattball7074]

Thanks for the video. Two quick questions. If you paid out dividends from the US LLC to yourself in Costa Rica lets say is there a withholding tax? Assume all the terms you named of no source are true & 2nd question, is there any difference having a single member LLC to a 2 or 3 member LLC with respect to this tax law? Are they taxed as corporations once you hit 3 members or is this at your discretion? Cheers!

[@esquiregroup]

Question 1: There are no withholding taxes when the LLC pays you distribution. Any withholding would be done at source on US-source income paid to the LLC. Question 2: Yes, a single member LLC is disregarded for US tax purposes. Once the LLC has more than 1 member, it is taxed as a partnership. You can, however, elect for the LLC to be taxed as a corporation regardless of how many members it has. Being taxed as partnership or corporation will have US tax consequences that will need to be analyzed. If you would like to get som advice regarding the above, you can schedule a consultation with me by emailing us at [e-mail]

[@launchcode5083]

great video, thanks for this. What about having the LLC and running a Saas product under the LLC. If the Saas has US customers, does that mean I have to pay tax for those customers?

[@esquiregroup]

Not necessarily but the analysis must consider many factors. I'd welcome the opportunity to help you figure this out. Please email us at [e-mail] to set up a consultation.

[@straightcheeks4756]

Hi, i am not from USA. I watched another video saying that single member LLCs need to pay self employment taxes. I would have business in USA (product is shipped from the USA to USA customers). Would I also need to pay this or only income taxes, sales taxes, state taxes and franchise taxes? And other taxes maybe? Thanks

[@esquiregroup]

This would likely be subject to all of the taxes you mention but should not be subject self-employment taxes. I would need more information to be able to answer your questions definitively. You can setup a consultation with me by emailing us at [e-mail].

[@fashionschoolsnitch6866]

So does an llc allow a non resident expat to open a PayPal account like a local? I want to be able to easily receive payments from platforms like upwork (as my country is not allowed to receive funds through PayPal)

[@esquiregroup]

You would need to ask PayPal this question.

[@raulgutierrezescareno7361]

I have a question, we have an LLC partnership, all members from MEXICO non resident/citizen of USA, we selling logistics services for a Mexican company who pays us in USD in an US bank account , what we do is that we contact carrriers in the USA and pay them to carry packages in the USA for this MEXICAN company, is this income US taxable?

[@esquiregroup]

I would need more information to fully understand your situation in order to advise your property. Please contact us at [e-mail] to setup a consultation with me.

[@luisaveiga724]

Thank you for the video! Could you please help me with this question ---In the company type "Inc" based in USA which I work we have a vendor, this person is from France but he created a company in USA an LLC, We have an agreement with that LLC and he is invoicing us through the LLC (all his professional services are provided form France). Right now we need to pay him and for onboarding this new LLC as vendor we are asking him to fill out the Tax Form W-9 which is for (US residentes/businesses) but his accountant from France is telling him just to fill out the W-8 because he is mentioning that the LLC is a disregarded company. My question is: what should be the right Tax form they should fill out and why ?? Which tax form should they fill out W-8BEN-E or W9???

[@esquiregroup]

Assuming the LLC is a disregarded entity and wholly-owned by a French individual, the proper form would be W-8BEN.

[@mrsergiu01]

Thank you! If to open an single member LLC in New Mexico for non resident. Selling for example supplements that are made in the United States.Selling on Amazon,Walmart,Personal website and Retails as well,without having any employe in the United States... what taxes should i pay?

[@esquiregroup]

This will likely be subject to US income taxes. I would need more information to make this determination definitively and see if there is a legal strategy for avoiding the tax. The best way to proceed is to have a consultation with me. You can email [e-mail] to set up a consultation.

[@Traisna]

Have u already itemn on amazon ?

[@gilcohenmusic]

Thanks for this info! What about income from apps in Google or Apple?

[@esquiregroup]

I would need to research this as it depends on how the income is classified; e.g. service, royalty, etc. I would be happy to do so but you would need to set up a consultation with me. You can do so by emailing me at [e-mail].

[@MubeenBinSaddiq]

Hello Jimmy Lovely video. i am a foreign alien. i wanted to setup an llc for my amazon business, 1.what state would be better for me. 2. if i am buying from US whole sale dealer with invoice and selling on amazon, do i need to pay any tax? ( if yes please explain) Thanks BR

[@esquiregroup]

The best way to get the answers to all your questions about setting up and doing business through a US LLC is to set up a consultation with me. You can do so by emailing us at [e-mail]. Thanks!

[@tabischaliem5808]

Hello, [uhm, you didn't give your name in the video : ) ] I'm glad I found your video. It answered some of the things I've been looking up. I'm Tabisch and I'm reaching out to you from Pakistan. There's a few questions I've got. Hopefully you can answer them: 1. Will the company (the LLC you talk about in the video) need to file returns in the USA? 2. In what manner/mode will the tax authority IRS treat this company? Will it be treated as a resident company or not? 3. Will the authority issue an EIN (Employer Identification Number) or Tax ID to the company? 4. If the company will be called a resident company, will IRS issue a tax residency certificate to the company's owner? Thank you so and kind regards

[@esquiregroup]

I would be happy to answer to answer your questions during a consultation. You can contact us at [e-mail] to setup a consultation. Thank you.

[@tabischaliem5808]

@@esquiregroup Thank you, Mr. Jimmy. I shall contact the esquire group.

[@Hantarolu]

Hello Jimmy Is there a maximum limit on the amount of revenue you have to pay in taxes for an LLC? With resident Dubai

[@esquiregroup]

Only US source income of the US LLC would be subject to tax. If the income is non-US source then there is no limit how much can be earned tax-free. That said, the rules as to what is and what is not US source income are complex. To say for certain how the income of your LLC would be taxed, I would need more info. The best way for me to advise you is for you to set up a consultation with me. You can do so by emailing us at [e-mail]. Thanks!

[@1showie]

Hi thanks for Clarifying things for me. I am in Jamaica and got my LLC 29th Dec 2022. I got an EIN in January 2023. I sell online to US persons sending items from JA to the US. Now that it's tax time, do I need to file forms to share this info with the IRS and what forms?

[@esquiregroup]

I would need more information to determine your U.S. tax obligations. For example, are you a U.S. person or nonresident alien. Are the goods you sell purchased or manufactured. The best way for me to advise you properly is to have a consultation with you. Please email us [e-mail] to set one up. Thanks!

[@lorearco4013]

Yes, you have to. I am in the same situation two years already filling forms to the IRS

[@KokoSword]

​@@lorearco4013can you tell me how did u form it ?

[@doglegish]

@@KokoSword the LLC? I hire a guy on Fiverr and he helped me to set up my LLC as a foreign owner

[@plammenn888]

Can I use the $ earned through this LLC in my home country which is Bulgaria tax-free?

[@esquiregroup]

That is a Bulgarian tax question, you would need to ask a Bulgarian tax advisor.

[@AmiraSaad-th1pb]

Great video. Hi, I deposited in my US LLC bank account 2500 dollars. Didn't do any business sales or purchases. Now in 5472 asset blank should I enter 2500 dollars. And is this a reportable transaction

[@esquiregroup]

Thank you for your question. Please schedule a consultation with me to get an answer to your question. You can set up a consultation by emailing us at [e-mail]

[@eduardosoares2484]

I'm not a resident or american citizen. If my BVI company open a Delaware LLC and buy common stocks through this US company will the dividends be taxed if i never withdraw them from the LLC?

[@esquiregroup]

It somewhat depends on how the US LLC is taxed. If it is taxed as a disregarded entity, the US will charge withholding tax when dividends are paid to the LLC. If it is taxed as a corporation, there will be withholding tax charged when the LLC pays dividends to the BVI company. I would be happy happy to help you figure out the best structure for you US investments. Email us [e-mail] to schedule a consultation with me.

[@eduardosoares2484]

@@esquiregroup "If it is taxed as a corporation, there will be withholding tax charged when the LLC pays dividends to the BVI company." So if the LLC never distribuite money to the BVI company it will never pay taxes in US. Is that correct? Appreciate your answer and for sure i'll contact you to structure open my american LLC.

[@NewinAI]

Let's say If I register a llc today, UAE sourced income, single member, what do i need to do in the next 1 year related to legal things?

[@NewinAI]

as I don't need to pay taxes, do I need to mention this somewhere?

[@esquiregroup]

Assuming you are not a U.S. person, you would need to renew the LLC each year and file Form 5471 with the IRS to disclose you as beneficial owner and related party transactions. This is a purely informational form, however, but no tax is due absent U.S. income.

[@stephenwilliams1286]

Uk Amazon seller on Amazon USA. If create a llc in USA will Amazon stop charging VAT even tho it’s a pass through entity and tax falls on uk soil?

[@esquiregroup]

To answer this question I would need more information and would likely need to do a bit of research. I would be happy to assist. Please email us at [e-mail] to set up a consultation with me.

[@belmisof]

Is the trading of futures considered as effecitively connected income ECI?

[@esquiregroup]

Trading futures should not be considered ECI if you are a nonresident alien trading from outside the US.

[@belmisof]

@@esquiregroup thank you

[@ajaysarjine3649]

what if i establish single owner LLC in USA and providing services(Logistic Navigations) from India? Is it taxable

[@esquiregroup]

This should not be taxable, however, it is impossible for me to say without more information. The best way to get a definitive answer is to set up a consultation with me. You can email us at [e-mail] to set up a consultation.

[@milkovivaldi]

Can I have an LLC that operates in the United States with a 21% tax (real estate) and, at the same time, does business in the stock exchange with a 0% tax (because it is considered a non-U.S. business)?

[@esquiregroup]

The only way an LLC would pay tax at 21% is if it has elected to be taxed as a corporation, in which case all income from any source would be taxed at 21%.

[@milkovivaldi]

@@esquiregroup ok, I’m going to set up 2 different companies 😎

[@leensteed7861]

How do I set up an LLC? What about bank accounts?

[@esquiregroup]

You can contact us at [e-mail] and we can assist with setup and a bank account.

[@fesalkhaled9579]

What about the US federal estate tax on foreign owner ?

[@esquiregroup]

U.S. situs assets will be subject to U.S. estate tax.

[@lightningstar44]

lets say im in india and i opened a LLC in US just for document that i have a company in US. So what is the payable tax for me as im still live in india and doing my company work without going to US.

[@esquiregroup]

Assuming you are providing services from India with no US premises or personnel, there should be no US tax. That said, I can't say definitively without knowing more. The best way to get answers to your questions is to set up a consultation with me. You can do so by emailing us at [e-mail].

[@erictan9274]

Do these type of company has to pay federal income tax?

[@esquiregroup]

Generally, if an LLC is owned by a single nonresident alien, it does not pay U.S. federal income taxes. That said, it depends on the type of income earned and whether the LLC has U.S. personnel or premises. I would need more information to advise on this. Please contact us at [e-mail] to setup a consultation.

[@Gamekopigayo]

🙂

[@qolv]

🎯 Key Takeaways for quick navigation: 00:00 🏝️ Overview of U.S. LLCs for Foreign Owners - U.S. LLCs are used by foreign owners as asset holding vehicles. - Traditional tax-free jurisdictions have faced increased regulatory burdens. - U.S. LLCs offer benefits similar to traditional offshore centers at lower costs. 01:09 🧾 Taxation of U.S. LLCs with Foreign Owners - U.S. LLCs with foreign owners are typically treated as disregarded entities. - Disregarded entities don't pay U.S. income tax unless they have U.S. source income. - Foreign owners can conduct business through a U.S. LLC without U.S. tax liability. 04:24 💼 Business Activities and U.S. Taxation - Income from services performed outside the U.S. is not considered U.S. source income. - Selling personal property from a foreign location does not create U.S. source income. - Non-resident aliens can own a U.S. LLC and conduct business without U.S. tax liability. 06:02 🏦 Advantages of U.S. LLCs with Foreign Owners - U.S. LLCs have no U.S. tax liability in the absence of U.S. source income. - They are easy and cost-effective to set up and maintain. - U.S. LLCs offer privacy, legitimacy, and access to the U.S. market without excessive regulatory burdens. Made with HARPA AI

[@esquiregroup]

Thanks for this!