Tax Advantages of a USA Company for Non-Residents

Your US company is considered an American 'person' in legal terms and can do anything a US person can do, like open up a US bank account, sign contracts, do business, get paid, and like any other US person, file their US tax returns.

You've probably heard of the Tax Free LLC. 

It is possible, under limited circumstances, for the Pass-Through Taxation of an LLC to a sole-proprietor (one owner) or partnership (many owners) can be taken advantage of by non-US residents.

You still have to file a simplified version of a corporate tax return and a form telling the IRS about overseas payments (the pass-through) to the owner. So although you wouldn't be liable for taxes in the USA, you still have to file in the USA, and the passed through revenue and expenses have to be declared in the owners tax return wherever they file.

Maybe you already live in a low tax jurisdiction, or maybe you're an expat that gets to choose your tax residency jurisdiction and this would make sense.

You can read more about the Tax Free LLC here, if you like: https://valisinternational.com/blog/the-tax-free-llc-for-non-us-residents


The really good news is that even if you form a C-Corp or an LLC taxed as a C-Corp you can still pay $0 taxes in the USA. We prefer this method ourselves as there is no qualification or limited circumstances, this applies to everybody equally:


The No Questions Asked Tax Free C-Corp

Here's the no questions asked, simple and legal way, to pay $0 tax in the USA while taking advantage of all the US tax system has to offer US companies.

Conduct your business as you normally would, but be sure to invoice your company personally for managing it, thus reducing its profit to $0. And since you only pay federal income tax on profit you won't owe any money to the IRS. You'll be able to account for all the revenue and expenses in the US company (C-Corp or LLC taxed as a C-Corp) and then have pre-tax pure profit delivered to the manager/owner (you) wherever you are. Better yet, you can break up that pure profit amongst your family, or your businesses, or any combination you want. Total flexibility.

Like the Tax Free LLC you pay no tax in the USA, but unlike the Tax Free LLC, with the No Questions Asked Tax Free C-Corp, you don't have to account for the business in your personal tax return (or local corporate tax return if the owner is a company), you just have to account for the pre-tax management income wherever you move it to. Making everything a lot more straightforward.


Contact us if you'd like to discuss your particular situation with us. We're happy to help!