Entrepreneurship & Small Business

Creating an LLC in a US state where income tax is zero on non-US generated income

  • Last Updated:
  • Jan 13th, 2020 11:16 am
Newbie
Jan 10, 2020
2 posts

Creating an LLC in a US state where income tax is zero on non-US generated income

Could you please share your experience setting up a company in one of the US states where income tax is zero on non-US generated income? Is it as easy as they advertise? Have you had any trouble with reporting in later years? How easy was it to open bank accounts? If you could recommend any law/accounting firms that help with such procedures, I would appreciate it.
2 replies
Deal Expert
User avatar
Aug 2, 2010
15196 posts
5016 upvotes
Here 'n There
Why do you want to do this should be the first question.
Sr. Member
Jan 18, 2017
607 posts
527 upvotes
AB
Any firm that says that a Canadian citizen/Canadian resident should set up a US LLC for anything, is probably not a cross-border firm you want to work with.

First problem is the "double-tax" issue re. the way Canada treats US LLC's. Second issue is going to be compliance costs ($$$). There's a lot of US disclosure returns that are required when an non-resident alien holds ownership of a US LLC.
WorkLife wrote: Could you please share your experience setting up a company in one of the US states where income tax is zero on non-US generated income? Is it as easy as they advertise? Have you had any trouble with reporting in later years? How easy was it to open bank accounts? If you could recommend any law/accounting firms that help with such procedures, I would appreciate it.
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MR CROSSBORDER KNOW IT NOTHING, but ready to spew forth. (Also a CPA)

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