10 COMMON MYTHS ABOUT THE US LLC — DEBUNKED

Fact: A US LLC can be owned by any person or entity, regardless of nationality or country of residence. Non-US residents can form and own US LLCs without any restrictions. In fact, the tax-exempt structure we describe is specifically designed for non-US residents.

Fact: The entire LLC formation process can be completed remotely. No in-person visit to the US is required. ZeroTax LLC handles everything online and delivers all documents by email.

Fact: The ZeroTax LLC is not a tax haven structure. It is a legitimate US business entity that is tax-exempt in the US because the owner is not a US resident and the LLC has no US-source income. This is a feature of the US tax code, not a loophole.

Fact: A US LLC does not eliminate your tax obligations in your home country. The LLC's profits flow through to you as the owner and are typically taxable in your country of residence. The ZeroTax LLC is only beneficial if you are tax-resident in a low-tax or territorial-tax jurisdiction.

Fact: Delaware is an excellent choice for many situations, but it is not always the best. For non-residents who prioritize low ongoing costs, New Mexico is often better. For maximum asset protection, Wyoming is superior. The best state depends on your specific situation.

Fact: A ZeroTax LLC has annual IRS reporting obligations, including IRS Form 1120 (short form) and IRS Form 5472. These filings do not create a tax liability, but they are mandatory. The penalty for non-filing of Form 5472 is $25,000 per form.

Fact: Using Amazon FBA does not create a permanent establishment in the US. Amazon is acting as an independent service provider, not as an agent of your LLC. The IRS has confirmed this position in guidance.

Fact: Anonymity depends on the state. In Wyoming, Delaware, New Mexico, and Colorado, the owner's name does not appear in public records. In Florida, Texas, and Nevada, at least one member's name is publicly disclosed.

Fact: The United States does not participate in the OECD Common Reporting Standard (CRS). US banks and financial institutions do not automatically report account information to foreign tax authorities. However, if you use a European bank for your LLC, that bank may be subject to CRS reporting.

Fact: Cheap online formation services typically provide only the Articles of Organization and a registered agent. They do not include EIN application, ITIN, custom operating agreements, annual reports, IRS filings, legal advisory, or any of the ongoing compliance services that keep your LLC in good standing. A poorly maintained LLC can lose its good standing and become a liability rather than an asset.