Why every international business needs a tax-free LLC 

Mundo is pleased to announce we have established a joint office in the USA with a licensed accountant specialized in foreign investment into the US who is also part of a top legal team of lawyers, CPAs, and tax advisers. Our Mundo team of experts have developed a unique product that provides efficient banking solutions together with global asset protection in the following unique packages: 

Bronze package: A zero tax (pass-through) United States LLC with bank account – USD 3500

Platinum package: A zero tax (pass-through) LLC with a bank account where the banking relationship and tax filings are personally attended to by our expert team. USD 9000 

Why a U.S. Company? 

With this offer, Mundo presents a unique opportunity in the US. With a properly established LLC in the US, a foreign business can invoice clients from any part of the world and be free of income and withholding tax. If the products and services are not offered in the country, and if the company does not have offices, employees, or a dependent agent in the US, then this tax exemption is applicable.

Moreover, foreigners from economically unstable countries have the opportunity to establish an account through their LLC and thus access the solid banking system of the US, keeping their funds in a country with a stable currency.

This can be achieved with low costs and simple procedures as LLCs are easy to set up and manage. Unlike regular companies, LLCs don’t have minimum director requirements, or mandatory meetings, and are not obliged to have a board of shareholders.

What is an LLC?  

The main characteristic of an LLC or “limited liability company” is that it maintains the corporate and personal assets separated. Thus, if the LLC should ask for a loan and the loan is not paid, the members of the LLC will not be liable for their personal assets. Also, the LLC is known as a “pass-through” entity, which means that the company does not pay corporate taxes, but the tax liabilities are passed through to the members, who will include this income in their yearly personal income tax filing.

Uses of an LLC 

Tax-Free Subsidiary (for Non-Residents): Foreign-owned LLCs are not subject to income or withholding tax in the US if they don´t conduct business in the country and don’t have a dependent agent.

Holding Company: An LLC can be used to own real estate or other assets to provide additional confidentiality and legal protection. 

For examples of the uses of LLCs, please read our article here.

Why you should bank in the US 

1. No US Tax Liability (if the company does not conduct business in the US and the owners are not US residents/citizens). 
   
2. No withholding taxes (if the company does not conduct business in the US and the owners are not US residents/citizens). 
3. Access to US bank accounts and a stable currency.
4. Access to US-based payment processors such as Stripe.
   
5. Legal protection (personal and corporate assets are kept separate). 
   
6. Flexibility in operations and ownership.
7. Low maintaining costs. 
   
8. The United States is not part of the CRS. 

Our banking options 

We can open personal and corporate savings/checking/money market accounts. Our expert only works with FDIC-insured banks which means the deposits are insured by the US government. We can also offer wealth management and business brokerage accounts. The brokerage account is SPIC (as long as funds are in the money market account and not in an active investment).

For qualifying customers, some banks and financial institutions may offer merchant services, which allow businesses to receive credit/debit card payments from customers, enhancing their cash flow.

To help ensure our customers the best possible experience, we get to know you and help select the best bank for your specific needs. Banks will generally ask for a passport, second photo ID, utility bill, resume/CV, business plan, website, etc. Once all of the documents and information have been provided, the process generally takes around 2-3 weeks to have the business account fully operational. 

What kind of business customers the USA banks want 

Banks in the USA generally want normal, commercial businesses that have easily identifiable business transactions. For example, an import/export company needs to receive payments from customers and pay suppliers. 

Next steps to open a bank account at an FDIC-insured Bank in the USA 

1. Fill out our questionnaire. 
   
2. Provide requested documents. 
3. Answer follow-up questions as required by the bank. 
4. Sign and return forms. 
5. Send the initial deposit. 
6. Register and log in to online banking. 
7. Maintain a long and enjoyable relationship with the bank. 

Tax-free LLCs in the US 

The foreign-owned LLCs are free from income and withholding taxes in the US as long as they don´t “engage in a trade or business in the US”. This means that a foreign-owned LLC will be subject to tax if: 

-It has an office with at least one employee. 

-The representatives of the LLC enter the US to deliver services. 

-The LLC has a dependent agent which can be an employee or a company working almost exclusively for the LLC and performing essential tasks.

It is important to remember that, even if the LLC is not subject to tax, it still needs to file an annual report and a form 5472 once a year stating all the transactions between the LLC and third parties. If this requirement is not met, then the LLC should pay a 25,000USD fine.

Tax-free LLC application process + bank account opening  

First step: 

Fill the form so that our partner can proceed with the LLC registration. After this, we will acquire the company´s tax ID. 

Time frame: from 1 to 2 weeks.

Second step: 

If you are eligible for a US bank account, we will ask you to send us the corresponding documents for the opening. The minimum deposits, bank fees, and interest rates depend on the bank and will be discussed during a personal consultation with our expert.

Time frame: from 1 to 4 days.

Third step: 

We will request the individual tax number that will be required to set up online payment accounts such as PayPal or Stripe.

Time frame: from 3 to 5 weeks.

Fourth step: 

File the annual report before March (each year). 

Time frame: Once a year.

Fifth step: 

File form 5472. This document will report all the transactions of your LLC. This form is not a tax filing, but a report of the company's activities so that the US can keep its transparency standards. The penalty for not submitting this form is 25,000 USD.

Time frame: Once a year

Why us – Our packages  

Mundo has partnered with one of the best lawyers, who is an expert in foreign investment and corporate services in the US. With an LLC, investors from all over the world can access amazing tax advantages. This benefit can be enhanced in combination with a properly structured Nevis trust.

Our package system, divided into two different options, offers different layers of protection that adapt to each investor´s needs. The bronze package includes all the basic features to form and operate an LLC in the US. The Platinum package includes this plus personal advice from our expert. 

Contact us today and find out more about the US LLC.