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.

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.

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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.

[AmazingVideos-wkkz]

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

[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

[lightningstar]

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.

[luisaveiga]

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???

[raulgutierrezescareno]

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?

[stephenwilliams]

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?

[launchcode]

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?

[fashionschoolsnitch]

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)

[straightcheeks]

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

[mattball]

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!

[ndemir]

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?

[tabischaliem]

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

[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

[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

[ajaysarjine]

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

[mrsergiu]

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?

[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)?

[eduardosoares]

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?

[AmiraSaad-thpb]

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

[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?