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American abroad creating an LLC

Asked by: John  — 19 March, 2013

I am living abroad and looking to start a consulting company on the side working with non-US clients. I know I will lose money the first few years and that this can be deducted from my tax obligation (in the US) but my salary overseas is low enough that I do not need to pay US taxes. Are there still benefits to creating the LLC or should I just create the company in the country I am in?

Answered by: admin  — 19 March, 2013


To my understanding, when you form an LLC, the company does not pay U.S. taxes. Instead, the income is passed-through the entity to the owners’ personal income, where you are subject to personal income taxes as per your claimed residence.

We offer a free tax-webinar which addresses the common questions of operating a U.S. company from abroad which I believe you would find very helpful.

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