LLC – A Profitable Company Establishment

LLC – A Profitable Company Establishment

LLC is 100% owned by the founder (single-member LLC), and there is no commercial establishment in the US, said company in the US would be tax-free ( at least for the part of the United States).

LLCs are fiscally transparent. We face pass-through taxation: no corporation tax is paid in the place of origin, and the tax liability is transferred from the company to the administrators.

The tax liability of the administrator depends exclusively on his place of residence. If the LLC’s assets are not enough to cover debts and liabilities, creditors usually cannot look to owners, managers, or officials for relief.

An LLC can be taxed as a “pass-through” entity, a sole proprietorship or partnership, or a regular corporation. By default, an LLC is taxed as a pass-through entity, where the owners only pay taxes on the LLC’s profits at their individual tax rates.

In addition, there is no VAT as such, but there are only regional sales taxes in case of shipping physical products to or from certain states. This does not affect the case of customers outside the US or services within the country. The top LLC services will help you in creating the LLC and take care of all formalities.

Of course, another advantage is that you save yourself from filing the accounting, with all that that entails:

  • You don’t have to keep vouchers
  • It is not necessary to present invoices and/or receipts from restaurants and others
  • A simple profit and loss account is enough

Since it is not required to file the tax return, you need just a simple account of exits and entrances, and if you want, you can easily fit the company accounts so that there are no benefits at the end of the year.

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