Hacker News Reader

Comment by fakedang | Hacker News Reader

Can't you just incorporate a Wyoming LLC (zero corporate tax + federal tax because you're non-resident in the US) then just open a Wise account?

Wyoming LLC gives passthrough taxation, and because you're in Germany, you'll be subject to German corporate and personal taxes alone, I presume?

Edit: changed from just personal tax to personal+corporate

View on HN

What should the US LLC do ? It will end up being treated like a GMBH in Germany (keyword : Typenvergleich ) and you will have to do all the bureaucracy in the us + Germany and end up paying the same taxes

The point I thought was a plus was that you'd be paying German taxes without all the German bureaucracy? Because there's definitely no bureaucracy for a Wyoming LLC except for a couple of IRS forms annually.

from what I know this is very much possible, you can also use tax treaties to transfer taxation to Germany.

e.g. Irish Ltd that is a resident in Germany

you won't have to bother with the naming problems etc. either

Unfortunately it doesn't work like that. You are just adding us bureaucracy+ dual accounting (euro/USD) to German bureaucracy where nothing changes .

My point is that US bureaucracy is very minimal - like I said, just need to submit a couple of forms to the IRS as a foreign-owned LLC.

Finanzamt may well decide this is a German company in the cunning disguise of a cowboy hat, and charge it German corporate tax

Which is still fine imo. My idea was not about skipping German corporate or personal taxes - it was about skipping German bureaucracy.

> it was about skipping German bureaucracy

By creating a company that requires a special filing status to the German tax office?

Ouch, is that painful too? Damn.

Do not know Germany's specific tax code, but in most EU countries should a control fire up it would result in tax evasion (not even tax avoidance), as in this case Germany can easily demonstrate the center of control is in fact in Germany.

Especially as you will have to file tax forms and disclosures for your salary.

You guys might want to take a consultation with a proper accountant/tax advisor for these setups.

Bookmarking for my personal posterity.

Reply on news.ycombinator.com