LLC Info

Business 3 views 3 answers
I'm based in the UK and run a membership paysite with all billing via US company CCBill. They transfer money to my UK bank every week and I then have to figure out what memberships are from the EU and pay 20% VAT. I'm thinking it might be better to rather open an LLC in US and keep all funds there and just draw a salary each month? I am selling non physical goods but members join my site from various states (and countries) so do I need to register in all states? Also what taxes will be applied to any profit left sitting in the company, i.e. not drawn out as salary?

Attorney Answers

3
Michael Doland ·
You certainly can open an LLC in the US and the choice of where can be important. However, if you will have a "local" presence in California you will have to register as a "foreign" LLC in California. If the LLC elects to be treated as a corporation then there is the issue of "accumulated profits tax" but a CPA or tax attorney should be consulted on that issue, and I am neither. There would be legal IP issues that would need to be dealt with. Having represented Europeans opening buisnesses in the US , I notice no mention is made of immigration issues but the capacity to open an LLC does not signify to have a resident work permit to work for your own LLC so this might be a related need.
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Dana Shultz ·
I have helped more than 30 foreign clients - some with circumstances similar to yours - establish businesses in the US, and I have blogged extensively about the challenges that these clients must address. I recommend that you start a my blog's Foreign Countries page (link below), and follow links to whichever posts interest you. You will have some practical issues to address: Not just taxes, but also opening a bank account. The Foreign Countries page includes links to accountants / tax advisors who are familiar with these types of issues.
0 upvotes
Peyman Dadmehr ·
If you are not going to have a physical presense in every state, you will most likely not need to register in those states. There are a number of considerations (some tax related) that you'll need to deal with. I suggest hiring an attorney in the US to assist you with this.
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