How I Use a Foreign Owned US LLC to Pay 0% US Tax

[@kevinmckenziee]

Very well explained, it is important to do things right :) Great explanation!! Editing was awesome btw

[@tuomaskiv]

Thanks so much!

[@lovalona7389]

Your tax obligations as a foreign individual are as follows: Federal Corporate Tax State Corporate Tax Sales Tax

[@Ngan-zy9kd]

@@lovalona7389Most businesses are selling to US consumers so most businesses have to pay US tax, it’s better NEVER get US involved because big brother always try to find ways to tax you! Go ask openAI FOR best advice! He’s selling digitally products without have to hire US workers ship to US customers, that’s why his bs title said pay 0% tax while 99% other businesses are not selling digital products! Bs I did extensive R&D😊😅

[@Ngan-zy9kd]

US IRS are very bossy they want to make worldwide minimum tax rate and force other countries must obey their laws and how to run their businesses, that’s why the world hate them dictator very bossy against others, you need to renounce your US resident to avoid their dictator power rule your life no freedom! 😊

[@Ngan-zy9kd]

Most banks don’t like to deal with US money open account there for complicated reporting IRS regulations! 😢 Don’t get US involved😊

[@synia566]

Great video. You mentioned my country?😅 I will be registering a US LLC, too many restriction and limitations operating anything from here. Thanks again for the great video.

[@Life-With-Tim]

Very informative!

[@crybananas]

Great video, finally someone explains this in a straightforward way. One question, if I own a US LLC as a non US citizen/resident and have no presence in the US, will the LLC still be liable for tax in the US if I have US clients? I invoice my clients monthly for consulting work and some of them are American so the invoice I would need to send them would be to US companies I do work for. Thanks in advance.

[@tuomaskiv]

no, having US clients will not make you taxable in US

[@crybananas]

@@tuomaskiv Thanks!

[@NicoSEO]

Can you explain why your Dubai company owns the US LLC, and not you personally? What is the difference? I would also be interested to book a call with you

[@doolaHQ]

Great question! Having your Dubai company own the U.S. LLC instead of owning it personally can provide benefits like clearer separation of personal and business assets, potential tax advantages depending on your situation, and easier management of profits through your Dubai entity. It also helps streamline compliance and legal protections. While I can’t assist with booking a call, we’d love to help you explore this further! 😊

[@Lestca1]

Awesome and clearly explained. Thanks!

[@MentalFrameworks]

Great video! I'm really curious about what state you registered your llc in, is there a difference?

[@tuomaskiv]

Wyoming is often recommended for LLCs, Delaware for C corps. I can't remember the reasoning for that but that'sthe conclusion I came to at the time.

[@joemq]

Which company did you use to help you set up your Dubai co? Great vid

[@dismahusername8309]

3:35 How are the profits automatically payed out? doesnt each member choose how much they want to draw out whenever from the business bank account?

[@FuadAman-wv5pc]

Great video! Approximately what percentage of your Stripe payments got previously declined?

[@sherifkhalaf-zj1nm]

I have a Certificate of Organization for my LLC, which was created on 05/30/2024. However, I do not have an EIN, ITIN, or bank account, and I am a foreigner. Is it necessary to close my business, or can I leave it as it is? Are there any tax liabilities or BOI reports that I need to be aware of?

[@mazzidumato]

So now with the 9%, does your UAE company have to pay for the US company profit?

[@tuomaskiv]

Depends, watch my guide to the UAE corporate tax or book a meeting with us

[@qartheros]

Thanks for the clear explanation. How do you account for the income flowing from USA to UAE on the UAE end? Does your UAE company invoice the US LLC? Or is it personal offshore income?

[@tuomaskiv]

Good question, on the UAE corp accounts they are dividends/profit distributions from a subsidiary

[@qartheros]

@@tuomaskiv so does that mean the LLC is owned by your UAE company, not you?

[@tuomaskiv]

yes

[@samirthevirtualbookkeeper]

@@tuomaskiv do you have a guide on how to transfer ownership of the US LLC to the UAE Company?

[@LeonardoFiori]

So at the end of the trip the UAE company or let's say the Bulgarian company (if you are an EU citizen) still pays taxes for the country. Having the US LLC is more of a shield for other stuff, but not avoiding taxes, right?

[@tuomaskiv]

The US LLC/whatever other companies you have pay taxes according to the laws of your country of residence. The LLC doesn't help you avoid tax if you're taxable in a country that charges tax to all companies.

[@zakross]

So would you say registering the business LLC structure in Dubai first then the US makes sense?

[@tuomaskiv]

yes

[@dismahusername8309]

Im based in the UK, my business partner in the USA, how can this video help me? Is the fact there is a member in the USA enough to trigger all US taxes on my side as well?

[@michellecandis]

Yes. 100%

[@Kodiiiiiiihg]

hi , a quick question please ,im italian and i created animation channel for kids english language , so 90% of the audience are american , now im planning to move to uae for low taxes and im planning to build a business in usa ( merch ,playground for kids ..) , but i dont like living in usa ! can i manage this from uae ? i know it is a little bit complicated but no one actually give me clear vision , even consultant ! thank you in advance

[@tuomaskiv]

Yes there is no problem with this, but if you have somthing physical in the US like a physical playground that you run from there that could create "US connected income" which would make you liable for US taxes

[@zeyad3k]

Great and very informative video .. I’m a UAE resident and I’m in a process of opening a US LLC … but I’m not sure why you are using your UAE company to pay yourself salary and not doing it directly from your US LLC.

[@eldridgesawyer2384]

You need an US LLC to set up an e-commerce business like Amazon FBA or TikTok Shop in the US, and you do also need an UAE company to pay yourself a salary in order to maintain your residency status in Dubai.

[@zeyad3k]

@@eldridgesawyer2384 that makes sense … thanks. And what would be the transaction type/description from the US LLC to UAE LLC?

[@pierrotmd]

8:25 He was talking about our weirds countries 😂😂

[@OperationsManager-j5u]

Can this work: US citizen establishes a foreign LLC in a zero tax jurisdiction that has no US locations or bank accounts (and is exempt from US BOI reporting) to invoice a US LLC for services. If you need to re-repatriate the funds for whatever reason, the foreign LLC can act as a bank and lend the funds via a loan agreement to another US LLC at a nominal rate. Borrowed funds are not considered income and thus exempt from taxes.

[@tuomaskiv]

If you are a US citizen you cannot setup a foreign US LLC as you are a US citizen

[@Lewi.s]

Hey Toumas.... KIndly break down the part of actually bringing your money back to your country

[@tuomaskiv]

What you should do depends on your specific situation. For me: LLC -> UAE holding company -> personal account

[@Lewi.s]

@@tuomaskiv Understood. From UAE holding to personal, do you eventually incur taxes?

[@tuomaskiv]

As a UAE resident I have 0% personal income tax. You pay the income tax rate of your country of residence when paying a salary to yourself, or the dividend rate if paying to yourself as a dividend. What makes most sense for you depends on your exact situation.

[@Lewi.s]

@@tuomaskiv Wow. What an elaborate explanation. Thank you for your response

[@anmolverma318]

@@tuomaskiv From LLC -> UAE holding company You won't pay 9% Corporate tax?

[@MikeH-h2l]

How about earnings from KZbin adsense or Facebook, and working with brands that are located within the US?

[@tuomaskiv]

Brands located in US it doesn't matter. Adsense has withholding tax as it's classed as royalties. If your country of residence has no tax treaty with US it'll be taxed at 30%

[@ironsa97]

Great Video! I already set up a UAE Company now I’m searching for a better solution because of stripe offers only Credit Cards in the UAE Business Location. Do you know how long it takes to set up the US LLC ?

[@leo-phiponacci]

Hey, If you need a UAE bank account, try wise(transferwise)

[@ironsa97]

@@leo-phiponacci Thank! I already set up everything with WIO Bank for Personal and Business Bank Account. Was a really smooth experience with them.

[@nickyverhoeven4791]

Thanks for the video sir. Question: How you receive your youtube adsense income in the UAE? because the UAE don't have a tax threaty with the USA. Or can you use the LLC's information in your adsense and get away without the 30% tax withholding.

[@tuomaskiv]

You have to pay the 30% withholding tax on all US viewer earnings, using US LLC will not get you around that if YOU are UAE resident

[@BrendanPGoodman]

Do you know if having one employee who is American citizen but resides abroad would qualify the LLC (w non-resident owner) as having a presence in U.S.?

[@michellecandis]

yes

[@DannyPasquel-q7n]

Hi, a quick question please, i created an youtube channel and my main audience is american but youtube retains 30% of the profit generated by US views, with an LLC can I avoid this 30% tariff?

[@tuomaskiv]

no you cannot avoid it with a US LLC if your country of residence has no tax treaty with US

[@JaydotBeats]

SO if i open and LLC via help (Bizee + register agent who i am also going to hire ) to do Amazon Wholesaling , because i am Non-US person (Im located in the caribbean) i wont be taxed by US ? Also i would only be taxed by my country that i live in?

[@tuomaskiv]

yes, probably, there are nuances to keep in mind

[@JaydotBeats]

@@tuomaskiv what’s are some of the nuance to keep in mind?

[@helenefalk500]

Nice video thanks. Keep in mind that with a USA based company you will need to be USA export compliant which means respecting all USA sanctions against many countries and companies / people that operate in those countries (e.g., China, Russia, Cuba, Iran, etc...) en.wikipedia.org/wiki/United_States_sanctions

[@AllInOneTunes]

This video is so helpful but I just have a quick question about what will happen if I open a bank account in US ?Does that change anything regarding tax?

[@tuomaskiv]

doesn't change anything

[@AllInOneTunes]

@@tuomaskiv Please could you assist me regarding this matter Please see below answers: Do you own the company? Yes How do you generate revenue? Marketing services Is there someone managing the business locally, or do you oversee it online? Online What type of business do you operate? Could you describe its nature? It's a marketing company Is your business registered in the USA or South Africa, given that you are a South African citizen? USA - I have a USA tax number If you could provide a brief overview of how you manage your business, it would greatly aid my research. I manage it from here, I have a USA bank account, tax number and company number. *My worry is about paying tax there and when transferring money to SA, having issues with tax here* Thank you in advance

[@marcososa1986]

did you open a US Business bank account? how?

[@tuomaskiv]

Yes, Mercury (link in description)

[@michelemacnab8471]

Very useful video, thank you! I am a South African resident planning on using Bizee to register an LLC in Wyoming. I have a US bank account but need a business registered in the US in order to use Stripe. None of my operations will take place within the US. I will use Quaderno to take care of my international VAT, GST and other sales taxes. I know from this video that I will not have to pay US federal income tax, just local tax. Bizee will inform me of any business filings and fees payable to Wyoming. The only piece of info I'm missing is what personal income tax forms I'll have to file with the IRS and how often, even if I have zero US tax dollars to pay in the US. Is there a service that can assist with this? It's mind-boggling looking at the IRS website...I think it's form 1040-NR but that's all I can make out. Another question - I'm setting up the LLC using a registered agent where documents can be sent, but no operations will take place within the US. Does a registered agent count as having an agent in the US for operations purposes?

[@subthewaysurfz]

Hi there, I am also from South africa and I want to open an llc in US, do you need a address in US to do this? I want to open one but I don't have an address to put as my registered agent or an social security number from us

[@michelemacnab8471]

@@subthewaysurfz You don't - you can use the registered agent's address. Take a look at Northwest Agent. There is also an application process for foreigners without social security numbers - although they say it takes 3 months. Bizee is another one, although they seem to force you to sign up for their virtual address service, which you don't need in order to register.

[@Steve8105]

Where is your accountant from then, the US?

[@edheldude]

The doola service he mentions offers bookkeeping but you can find cheaper ones too.

[@AllInOneTunes]

If you are a South African citizen providing freelance marketing services to a client in the U.S. while living and working in South Africa, and your business is registered in the U.S. with a U.S. tax number (such as an EIN) how this works in terms of tax

[@tuomaskiv]

You pay tax in South Africa

[@vibewithdipen8473]

@@tuomaskivwhat if he doesn’t transfer any money which he receives on his US bank accounts to his local African bank account?

[@Lewi.s]

@@vibewithdipen8473 Exactly...

[@goodbye_py]

I AM SOLD. REGISTERING AN LLC RN.

[@tjace4262]

Hi, i’m from peru, I run airbnbs in my country but I want to open an LLC in Delaware. I wonder if i will have to pay sales taxes?

[@tuomaskiv]

You would most likely have to pay local Peruvian sales taxes but that depends on your local laws

[@Lewi.s]

@@tuomaskiv Kindly break this down

[@RedouanFrero]

What about US VAT? you don't have to charge a US client VAT through a UAE entity. isn't it?

[@AllInOneTunes]

No Vat in USA

[@Divyv520]

Hey Tuomas , very good video . I can do better editing in your videos which can help you to get more engagement in your videos . Pls lmk what do you think ?

[@lovalona7389]

Your tax obligations as a foreign individual are as follows: Federal Corporate Tax State Corporate Tax Sales Tax

[@strauss7151]

Why did you use your Dubai company as the LLC owner and not yourself? Wouldn't you have saved on taxes if you had it in your own name, since Dubai has 0% income tax?

[@tuomaskiv]

No, the US LLC is liable for corporate tax in UAE - the UAE treats it as a corporation