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LLC guide

11 practical ways to use your zero-tax LLC

Invoicing, trading, asset protection, contracts: 11 concrete ways clients use the tax-free US LLC. Ideas for your own next step, honestly explained.

How clients around the world earn money tax-free, build and protect their wealth and enjoy a life of freedom. All with full privacy, and without appearing in public company or transparency registers.

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If you are fully tax resident in a country that does not allow the tax-optimised use of a foreign company, using a zero-tax LLC that way is not legally possible for you.

A zero-tax LLC is meant for clients who live in a low-tax country or as digital nomads or perpetual travellers.

In what follows, we assume that you already live in a low-tax country or are about to move there.

If in doubt, book a consultation (held in English) or get independent advice from your own tax adviser and lawyer.

Issuing a bond

The LLC is ideally suited as an SPV for issuing a bond. In the US it is standard practice to structure bonds through LLCs, but of course you can also place them in Europe. Mind the prospectus requirements!

Services

The daily bread of many digital nomads: you provide services to your clients abroad (for example coding, consulting, design or writing) and invoice them through the LLC. The advantage: you enjoy liability protection and do not have to put your private address on the invoice.

E-commerce

You sell goods to customers worldwide, including in the EU and the US, either through Amazon or your own shop.

Important: when selling to customers in the EU, keep EU VAT firmly in mind. You CANNOT get around it with the LLC. The LLC then has to register for OSS in the EU and collect and pay over the VAT.

A fresh start in business

If, for example, you have been through insolvency proceedings and your credit record is ruined, or there are still creditors making your life difficult, a zero-tax LLC can be a good way to set up a new business. Especially one in which you do not appear by name, without any trustee or nominee! You can act again and calmly get on with building a new livelihood.

Crypto

Crypto trading, staking, mining: these are all activities you can carry out in the name of the LLC rather than in your own name. The LLC can hold wallets, open accounts on crypto exchanges, and buy and sell coins.

IP holding

The LLC can hold intellectual property and charge licence fees for its use. Above all, check whether the licensee is required to withhold tax at source, which can eat noticeably into your revenue. Get tax and legal clarification on this in advance.

Issuing invoices

Do you need to issue an invoice, for example for a success fee or a commission, and need a company to do it because you do not want your name on the invoice? The LLC is ideal for invoicing your business partners, once or on a recurring basis.

Trading

If you want to trade but would rather not open a portfolio or account with your broker in your own name, the LLC is ideal, provided of course that the broker opens accounts for companies and the LLC is an accepted legal form for opening an account.

Asset protection

With the LLC you can protect assets and put them beyond the reach of third parties. Even if you later run into financial difficulties, the assets in the LLC remain protected from being seized.

Contracting party

Cooperation agreements, settlement agreements, fee agreements, sales contracts, leases, loan agreements and so on: if you want to enter into a contract without appearing in person, or generally prefer to use a company, a zero-tax LLC makes an excellent contracting party.

Non-compete situations

If you are bound by a non-compete clause, or generally do not want to appear in the market as a competitor, the LLC is an excellent screen behind which to keep your outward presence out of view.

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