Put two jurisdictions or legal forms side by side. See how ownership, annual work and tax rules differ before discussing the account and structure your business needs.
Foreign service income can fall outside US federal tax.
A non-US resident individual working entirely outside the US may owe no US federal income tax on that service profit through a single-member LLC.
When it applies
The LLC must be disregarded for federal tax, with no US trade or business or effectively connected income. Where the work is done matters more than where the client lives.
Tax triggers and filing
What creates the tax
US business activity, US-source income or a corporate election can change the result. Keeping money in the LLC does not defer a member’s tax.
Payments and returns
Owner returns and estimated payments depend on the income and tax status. A foreign-owned disregarded LLC files Form 5472 with a pro forma 1120 when it has reportable transactions, even if income tax is zero.
LLC: services delivered outside the US
A non-US resident individual with a disregarded single-member LLC, working entirely outside the US with no US trade or business, may have no US federal income tax on that foreign-source service profit.
The client’s country alone does not determine where services were performed. Working in the US changes the assessment.
State charges, applicable Form 5472 reporting and tax in the owner’s country can still apply. A multi-member LLC, corporate election or different income needs a separate review.
Ownership and running costs
Ownership and running costs
What to consider
WyomingLLC
DelawareLLC
Typical use
Wyoming / LLCOwner-managed services, trading and businesses that need flexible management.
Delaware / LLCOwner-managed services, trading and businesses that need flexible management.
Owners and eligibility
Wyoming / LLCOne or more members; foreign owners generally permitted.
Delaware / LLCOne or more members; foreign owners generally permitted.
Personal liability
Wyoming / LLCGenerally limited liability, subject to local exceptions, guarantees and personal misconduct.
Delaware / LLCGenerally limited liability, subject to local exceptions, guarantees and personal misconduct.
Management
Wyoming / LLCMembers or appointed managers, under an operating agreement.
Delaware / LLCMembers or appointed managers, under an operating agreement.
Local presence
Wyoming / LLCA registered agent with a Wyoming address. Operating elsewhere can require registration in that other state.
Delaware / LLCA Delaware registered agent. Actual operations elsewhere can create additional registrations.
Capital and funding
Wyoming / LLCDocument contributions or shares in the company records; capital needs depend on the selected form and business.
Delaware / LLCLLCs document contributions. For a corporation, the share structure can affect the franchise-tax calculation.
Local annual obligations
Wyoming / LLCAnnual report and licence tax: USD 60 minimum, or 0.0002 of Wyoming assets if higher. Agent and federal work are additional.
Delaware / LLCLLC: USD 400 annual state tax, due 1 June, with no LLC annual report. Corporations have a separate franchise-tax and annual-report regime.
Banking
Wyoming / LLCThe institution considers the owner, customer countries, supplier countries and business model together. Registration does not guarantee an account.
Delaware / LLCThe institution considers the owner, customer countries, supplier countries and business model together. Registration does not guarantee an account.
Advantages and limitations
Wyoming / LLC
Advantages
The minimum state annual charge is lower than Delaware’s LLC tax.
LLC and corporation options allow different ownership and investment arrangements.
Limitations
Operating in another state can add registration and tax duties there.
An annual report is required, separately from federal filings.
Delaware / LLC
Advantages
LLC and corporation routes accommodate different ownership plans.
The LLC has a fixed annual state tax rather than a state annual report.
Limitations
The USD 400 LLC tax is due even if the LLC has no activity.
Corporate franchise tax must be calculated for the actual share structure.
General information on standard regimes. Activity, VAT, payroll, treaties and the owner’s circumstances can change the result. Assess banking and residence before choosing.
Banking requirements before incorporation.
A tax comparison becomes useful once both options can support your real business. Compare bank eligibility and the owner’s residence as well as the entity rules, especially if the company will be managed from another country.
Aleksandar Dobromirov and the advisory team.
Aleksandar Dobromirov, CEO of Euro Commerce LLC, works with a team of lawyers and accountants on company structures and the administration that follows. His more than 30 years in business span international trade, representation, construction, marketing and management, as well as corporate, investment and holding structures. We bring the owners, customers, suppliers and activity into the same discussion before choosing where to register.
Company management and your tax residence.
If you move between countries, start by establishing your personal tax residence and where the company is really managed. An address from a formation package cannot answer either question. Banking, CRS and FATCA documentation must reflect the underlying facts.
The owners and management
Where do the owners live, which citizenships and tax residences do they hold, and where are company decisions made? Explain changes of residence rather than assuming that travel removes a tax connection.
Customers and incoming payments
Identify customer countries, contracts, currencies and expected volumes. A provider needs to understand the source of the money, not just see a registration certificate.
Suppliers and outgoing payments
Map contractors, stock purchases and service providers, including the countries receiving funds. These flows should fit the activity described in the application.
The activity itself
A consultancy, a trading company and a regulated financial business face different acceptance rules. Check whether the institution supports the model before paying to incorporate.
Sources and further reading
Requirements depend on your circumstances. Check the original rules and agree the scope before proceeding.
Does the lowest tax rate mean the lowest overall cost?
No. Include recurring services, local obligations and the owner’s position. The displayed regimes are general information, and the same income can raise questions in more than one country.
Can I compare two legal forms in the same country?
Yes. Choose Company structures to compare forms within a jurisdiction. Ownership eligibility, liability and administration can differ even when the country is the same.
Will either option qualify for the account I want?
The comparison cannot establish bank acceptance. The institution considers the owners, customers, suppliers and activity together. Discuss that business picture before committing to registration.
How do I ask about my selected options?
Use the discussion button after the results. Your selection is added to the enquiry, where you can explain the business and review an email draft. The form does not send automatically or reserve an appointment.
Discuss the companies you are comparing.
A comparison helps you spot the trade-offs; your working location, customers and suppliers determine which matter. Send the selected options with a short business outline so we can discuss the suitability and work involved before you register.
