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ResourcesCorporate and Tax AdvisoryUS Corporate LawUsage of American LLC Corporate Structures for US Citizens Abroad

Usage of American LLC Corporate Structures for US Citizens Abroad

Transcript of the above video:

In this video, we're going to be briefly talking about LLC's so-called limited liability companies and how they can be somewhat useful for American citizens who are resident abroad so-called expats. An LLC, a limited liability company - they were created at around 20 years ago. They were basically created as a fast, quick to set up entity that provides limited liability much like a so called incorporated entity or an INC that you used to see some decades ago, not as common now.

The LLC can be very, very useful for an American overseas because basically, the LLC itself is an onshore entity in the United States and the American citizen can use that entity to basically allow it to be a repository for payments and fees associated with that individual’s business activities. And basically, so an individual can be paid for their LLC account in the U.S. and can then go around and can operate outside of the United States at the behest of the LLC. And the individual can be the sole managing member or you know, however you want to set it up, but the individual can be the sole person behind LLC structure.

The beneficial thing with respect to this type of setup would be that one taxes, U.S. tax filings would get significantly less cumbersome under certain circumstances. There are situations where an American operating abroad using a company that's registered abroad might be in a position where his or her tax filings would be extremely cumbersome depending on the jurisdictions, depending on things like double tax treaties. You know, you can end up with a phone book every time you file your tax returns whereas using an onshore entity such as an American LLC might provide some administrative convenience, for lack of a better term.

Another thing to think about is credit card processing. An LLC can have a bank account in the United States is attached to a credit card processor in the United States and that credit card processor could process credit cards as if it was in the U.S. And it's been my experience that those individuals who utilize such a structure have credit card processing capabilities that are much more convenient and easy to use compared to some credit card functions outside of the U.S.A.

Here in Thailand, I found that most credit card processors are actually fairly convenient and relatively easy to set up and relatively easy to use. But that being said, some folks don't feel particularly comfortable dealing with the institutions or perhaps the language barriers that are inherent in dealing with jurisdictions outside the U.S.A.

So for all of these reasons and many more, an LLC may, depending on the circumstances of the American in question, an LLC may be the right fit with respect to one's business organization.