The US is often overlooked by international businesses seeking to maximise value for their shareholders. Increased reporting requirements (e.g. FBAR) have resulted in a decline in interest in such vehicles in recent years, however, an appropriately structured and managed US limited liability company (LLC) continues to offer advantages for those conducting business internationally.
Typically, LLCs are treated similarly for the purposes of both state and federal tax unless classified otherwise. Delaware, Georgia and New York are amoungst the most popular states for the creation of US LLCs. Georgia is particularly attractive, because of its low cost base and its network of specialist services.
USA Key Facts [Georgia LLC]
Pearse Trust offer LLCs in multiple US states. Each state has its own requirements. Below are the requirements for Georgia LLCs.
Up to ten working days
Annual informational return required to be filed each year.
Double Tax Treaties:
If non-resident for US tax purposes then the LLC does not qualify for double tax treaties.
Minimum of US$1
- Either members or managers can be appointed to manage the affairs of the LLC
- No restriction on residence or nationality
- Legal or natural persons permitted
- Recommended number of members: 1
A Georgia LLC with only one member is treated as a “disregarded” entity or sole proprietorship for Georgia state and US federal tax purposes, under certain circumstances.
Such an LLC will not be liable to US federal or Georgia state taxation, nor will it be required to file a federal or state tax return.
Limited Liability Companies (LLCs) registered in Georgia, Delaware and New York do not incur federal taxes once certain conditions are met.
The general taxation principles for these three states are similar. Certain LLCs are exempt from federal taxes if they are treated as a “disregarded” entity or sole proprietorship. In the case of Georgia, the rules include that the LLC has:
- No members from either Georgia or the US
- Not engaged in business in the State or the US
- No permanent establishment there
- No income from the state or the US
Pearse Trust is well-placed to advise international clients on the use of LLCs. The company established an office in Atlanta in 1999 to offer a broader LLC service to clients.
Limited Liability Companies (LLCs) formed in Georgia, Delaware and New York are governed by the relevant companies act in each of those states.
Establishment rules are broadly similar. All must maintain registered offices and registered agents within the state in question. The only document on the public record is the certificate of formation. There is no obligation to declare the beneficial owner of the LLC.
Pearse Trust’s office in Atlanta has many years’ experience of registering companies on behalf of its clients. The company offers a full online service for company formations for clients.
Compliance requirements for limited liability companies (LLCs) which are registered in the states of Georgia, Delaware and New York are broadly similar. Tax filing requirements are governed by the classification of a LLC. For all states, there are:
- No requirements for an annual audit, unless mandated by the LLC members
- No obligations to hold an annual meeting, unless it is stipulated in the agreement
- No stipulations about annual meetings, again unless it is specifically mandated in the agreement
- An annual foreign currency account reporting (FBAR) may be required by a US LLC where the aggregate of foreign accounts which the LLC has financial interest in, or has signature authority (or other authority that is comparable to signature authority) over, exceeds US $10,000 at anytime during a calendar year.
Pearse Trust’s Atlanta office has a lengthy track record of advising international clients on legal and compliance issues relating to LLCs.
Appropriate use of Limited Liability Companies (LLCs) by international clients of Pearse Trust has led to significant returns for those clients.
Non-US members of limited liability companies (LLCs) in Georgia, Delaware and New York do not attract any federal or state tax exposure, if these vehicles have been correctly structured.
Pearse Trust’s Atlanta office has considerable knowledge of LLCs and of advising international clients how they can be used to reduce or eliminate tax charges. We provide specialist advice on legal, taxation and compliance issues, as well as an incorporation service.