Frequently asked questions about the zero-tax US LLC

Frequently asked questions about the zero-tax US LLC

• Is the LLC really tax-exempt in the US? Am I operating in a grey area?

No, you are not in a grey area, provided you meet the conditions that apply to the tax exemption. In essence, there must be no permanent establishment in the US, and you yourself must not be subject to tax in the US.

• Do I have to pay tax at home?

That depends on where you live and how you run the LLC. If you live in a low-tax country where the LLC does not create a permanent establishment, the income is tax-free there as well.

• What about digital nomads?

The zero-tax LLC is the ideal legal form for many digital nomads and perpetual travelers.

• Do I need a Social Security Number (SSN) to use the LLC?

No, an SSN is not required. Some providers, such as Relay or PayPal, ask for an SSN or ITIN. In those cases an ITIN is enough. A US LLC no longer gets you one these days; you get it with the Credit Builder.

• Do I need a US tax ID number (ITIN)?

You do not need an ITIN for the formation and the EIN. Day to day, though, it has become valuable: some banks (e.g. Relay) and payment providers (e.g. PayPal) require an SSN or ITIN. The LLC no longer gets you one these days. You get your ITIN with the Credit Builder and are covered for every case.

• I thought Delaware was a tax haven.

There are plenty of myths about Delaware. None of them is true. Delaware offers no tax advantages at all, except for billion-dollar corporations based in the US, such as Coca-Cola.

• Does it make a tax difference which state the LLC is formed in?

No, from a tax point of view the state of formation for the zero-tax LLC makes no difference at all. It is tax-exempt in every state. These are the 3 best states for your zero-tax LLC.

• Does the business address affect the tax burden?

No, the business address is not a permanent establishment, just a virtual office.

• Which bank is the LLC's account opened with?

We open your company's account with an online bank such as Mercury or Brax.

• Does the US bank offer euro accounts too?

No, euro accounts are unfortunately not possible. You can, however, easily open a euro account yourself with a provider such as Wise or Payoneer.

• Does the US take part in the international information exchange under the OECD CRS?

No, the US does not take part in the OECD CRS data exchange.

• Is there a beneficial ownership register in the US?

No. Since March 2025, LLCs formed in the US are fully exempt from BOI reporting. Your details are not held in any US federal register. We monitor the legal position continuously and will handle any future filings at no extra cost if the obligation ever returns.

• What is published about the LLC in the business register?

Business registers are run individually by each state, so the information they publish differs from state to state. Normally the company name, registered office and one member of management are published, which for an LLC means a member or manager. In Delaware, Colorado, New Mexico and Wyoming, no personal details are published.

• Does the LLC have to prepare a balance sheet?

No, the LLC does not have to prepare a balance sheet.

• Will my name appear anywhere?

If you form in Delaware, Wyoming, Colorado or New Mexico, your name does not appear. In Nevada, Florida and Texas, your details are published in the business register.

• Can the LLC accept credit card payments?

Yes, the LLC can open accounts with providers such as Stripe.

• I need a certificate from the business register with an apostille for my LLC. Can you help?

Yes, we are happy to obtain it for you. Which documents exist and what they prove is explained in our article on the Certificate of Good Standing.

• Can you provide a manager for my US LLC?

Yes, in some circumstances we can put you in touch with a potential non-executive manager who does not live in the US. Please contact us.

• Do you also form in Washington D.C. or Puerto Rico?

Only after a case-by-case review in a consultation (held in English). Both territories follow their own tax rules, Puerto Rico in particular: the well-known tax advantages there apply to people who actually move to the island, not to a company on its own, and the zero-tax mechanics of the 50 states do not automatically carry over. For almost every case, a state is the right choice.