I have a question regarding setting up a non-resident LLC in California.
I'm in online business (making web sites, web applications, web-hosting re-seller) and I have clients in Europe, where my company is based. The taxes in Europe are huge ... monthly wages are taxed at 50% , tax on yearly profit approx. 46% etc.)
My plan now is to divide the business - I would acquire a new clinet through my EU company and then outsource it to a US company (that I plan to incoporate now) or hook US company and client directly.
This way I can channel the money outside the EU company, where the taxes are enormous.
Why California? I do not wish to set up a LLC in Nevada, Delaware, Wyomning or any other tax heaven (Belize, Gibraltar etc.) since all of these states are already stigmatized at tax officials and also at some clients. It is completely different perception if I offer them services from a company based in California than to Cook Islands etc. Even a dumb secretary knows there are IT companies in Silicon Valley and raises eyebrows when a well known tax heaven is mentioned. Unforunatelly, but true in many cases.
So now- can anybody tell me - if I forgot something or have a better idea in general:
Thanks, Owen
I'm in online business (making web sites, web applications, web-hosting re-seller) and I have clients in Europe, where my company is based. The taxes in Europe are huge ... monthly wages are taxed at 50% , tax on yearly profit approx. 46% etc.)
My plan now is to divide the business - I would acquire a new clinet through my EU company and then outsource it to a US company (that I plan to incoporate now) or hook US company and client directly.
This way I can channel the money outside the EU company, where the taxes are enormous.
Why California? I do not wish to set up a LLC in Nevada, Delaware, Wyomning or any other tax heaven (Belize, Gibraltar etc.) since all of these states are already stigmatized at tax officials and also at some clients. It is completely different perception if I offer them services from a company based in California than to Cook Islands etc. Even a dumb secretary knows there are IT companies in Silicon Valley and raises eyebrows when a well known tax heaven is mentioned. Unforunatelly, but true in many cases.
So now- can anybody tell me - if I forgot something or have a better idea in general:
- I incorporate a non-resident LLC in California (I'm a non-US citizen).
- I don't have any business with any US resident company and never use this company for any US based business or have a US partner
- I open a bank account outside EU
- I pay $800 annual CA franchise tax
Thanks, Owen
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