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Ta wire looks interesting. Let me pick your brain here for a moment, my wife is looking to start SaaS soon, she is based in EU but intends to open both EU and W
by rnewme 2y ago
Ta wire looks interesting. Let me pick your brain here for a moment, my wife is looking to start SaaS soon, she is based in EU but intends to open both EU and Wyoming llc. Wyoming llc would sell B2C, EU llc would then invoice Wyoming llc monthly so she and her future employees can get paid. Since the eu country doesn't have tax agreement with USA the anon llc would be practically invisible to EU, and additionally as foreign owned llc with no employees I believe there is no tax in USA either? What do you think about this approach? Does your advice still hold; start with stripe, do the minimum to have llc working?
- alexanderchr 2y agoBe really careful with this unless you know what you’re doing. Setting up a foreign entity that only collects revenue and pays royalties is a known trick and will be looked at very closely by tax inspectors. Worst case they will consider the foreign entity artificial and tax it as if it was a local company. My recommendation would be to keep things simple with a local company, and start worrying about complex structures once you have enough revenue for it to make sense.
- rnewme 2y agoBut the local bureaucracy is the problem, not the tax. I would actually pay more tax in my scheme, but not have to deal with complex tax tracking, remitting etc..
- alexanderchr 2y agoYeah I understand where you're coming from. I'm just saying that the tax authorities might not see it that way, and you can end up in really tricky situations unless you have sveral layers that cover you from responsibility. Hence my recommendation to keep the company structure simple even if it means more bureaucracy.
- rnewme 2y agoI appreciate your advice, and you're right.