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Where Taxpayers and Advisers Meet

US LLC with UK LTD Member

stephen2.0
Posts:2
Joined:Fri Oct 06, 2017 10:08 am
US LLC with UK LTD Member

Postby stephen2.0 » Fri Oct 06, 2017 10:17 am

We have a ltd company in UK. Our business is drop shipping. Our customers are mostly from the US and the products are shipped from outside the US to the US. We want to create a US LLC so we have access to the US Banks and credit card processing. US People like to deal with US companies. We've noticed a lot if they try to make a purchase on our website their bank automatically blocks the transaction because we are not located in the US and thus the bank calls the customer to confirm , sometimes resulting in a loss of sales.

I've done a bit of research about the topic.

Q. Do we have a people on the Ground in the US working for us or fulfilling the orders?
A. No.

Q. Where is our office and control and management?
A. In the UK

Q. Do we have ETBUS ?
A. We don't have trade or business in the US so we are NOT considered to be Effectively Connected Income (ECI). Only our Web Servers, Our Banks, Our Credit Card Processors is all we have in the US.

So the next part:
1. How do we form an LLC so that it has my UK ltd company as the member. Example:
US LLC-->UK LTD COMPANY MEMBER-->UK RESIDENT OWNER

2. Will will pay the corporate taxes of the US LLC in UK. UK has high personal tax rate so we want our ltd company to be the member and pay the tax and not me personally.

3. How do we transfer funds from the US bank to our UK bank.

4. UK has a tax treaty. How would this benefit.

5. What reporting requirements do i have in the US and UK. From research i've done there is just 1 form to report income to the US.

Any Advise?

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