Can you make a video explaining the legal structure more? Why the Arizona LLC versus Delaware or others, what freezone specifically you picked in dubai, etc?
Why not just connect Stripe to the Dubai bank account? As per my understanding, customers just see the Stripe portal, they dont know if its going to the USA or Dubai. So, why create the extra layer of USA when it can be done only from UAE?
In that case it doesn't matter, but people won't be doing 5 figure plus transfers through a stripe page... people at that level would find ask about your bank
Awesome man happy to help! The personal tax depends on where you live, Cyprus could be good but better have your residence in Dubai and connect your assets here
If everything is going great with the US LLC then why would you need to have a Dubai FZ company! In other words, if you are not paying taxes using the US LLC then what's the point of the FZ Dubai company!
@@sbadrawi2011a 1. If the members of the LLC is you, then you would’ve required to pay tax 2. If the member of the LLC is a FZCO , then the FZCO would be liable to pay tax …. 1. You=10% or 20% , or whatever % 2. FZCO = NO tax.
Man this vid is a gold mine, thank's a lot for what you're doing ! What if you're non-US resident ( instead you're tax resident of a territorial tax country) and bill US clients via your US LLC and transfer instantly that money to your UK LTD. In this case do you have to pay taxes to the US on US sourced income ?
I learnt so much from you in a few videos about where to setup best for crypto and citizenship than all the other YTs I have been watching for the past 2 years.
Hi , quick question: What about the VAT you charge per service? Meaning would your invoices - USA LLC INVOICES - have the US TAX (local tax %) + the Amount you charge? How do you then justify the money to go all the way up to the UAE company? Invoice it as consulting? Thanks, Tiago
I have the same question but for e-commerce (selling products). Trying to figure out how the sales tax is handled. Update: I use TaxJar so I think it's just a matter of linking it my new (foreign) bank account. Still have to pay sales tax per each state as required.
@@mlee9049 I belive stripe has a feature where they collected does taxes, since each state has its own taxation which has to do with my client but not us. or am I wrong?
Dubai for the first time introduced taxes in main land companies , in case you want to do business in UAE you must have a mainland company set up not freezone
WOW, that's exactly what I'm doing, and already have mercury account for the US/FL company as non citizen (already dont pay taxes unless I employ a citizen and/or reside there for 6 months). Currently it's in my name, I was first considering to have a holding company in WY. Then I start to stumble across UAE and that is definitely the direction I am going for the holding company.
If everything is going great with the US LLC then why would you need to have a Dubai FZ company! In other words, if you are not paying taxes using the US LLC then what's the point of the FZ Dubai company!
I’m interested in learning more but I’m also a Spanish resident. Would you have any knowledge in how to help? Basically I’m starting an online business and want to minimize tax obligations in a US CITIZEN and Spain resident.
If you have a US LLC you will need an EIN to open a bank accountant, how do you do this or get around this if the LLC member is 100% a Company and an offshore Company....?
What is the purpose of putting FZCO instead of yourself as the beneficiary for a US LLC? IRS will find out the ultimate beneficiary anyway, when you will receive EIN and you will have to disclose the information. And especially with the new law (orporate Transparency Act), which started in January 2024, the point is completely lost, even if you don't get an EIN.
4:40 I don't understand, could you please clarify!? You say this setup is tax free for non US Citizens, then say i still need to pay taxes if i live in my country of origin! What do you mean?
Great video but there is a problem... You can open up a US LLC and use neo-banks like Wise & Mercury with no issues at all. But as a non-resident of the USA, how do you set up Paypal & Stripe accounts for US customers to pay? This entire plan doesn't work if you can't use US payment processors.
Hi Rafael, please don’t mind but the person who is holding USA passport in their hand in the video at 2:13 possibly get your nail checked - the line in the nail can be an issue.
@@WealthyExpat Thanks your reply, I'm currently not a US resident/citizen and I own real estate rental houses in the US, my LLC currently has to pay taxes. What's the difference between the business you are describing and my LLC? Is it because yours is an online business that does not serve US clients or it's because my business is in Real estate?
@@michelfahed I think that it has to do with the fact that the income you generate from your real estate is US sourced. In his case it is not US sourced (online).
I’m a licensed psychotherapist living in Vietnam. My company is technically owned by my Vietnamese girlfriend, however I also have a EIN tax ID number associated with this company (I’m American). I’m still paying 15% self employment tax every year. Can this be avoided?
I am an American citizen who recently just got dual citizenship in Italy. I live in Italy now. What’s the best way for me to start and LLC and have the least tax possible. Help!
Why would I move the money to Dubai if I'm a non-US citizen/resident? i could just keep the money and spend the money thru the USA Company bank account and credit card
Brother like Mercury in USA, is there any bank in UAE as well in which we can easily open without living there and operate easily from any part of the world?
I am iranian but I have an Italian ID card and bank account ( no valid residemce permit at the moment tho) will I be able to work online and take benefit from this UAE zero tax program?
I would love to see you do a video about which countries allow us to make deposits by bitcoin. I know there are a few. Andrew Henderson, who. She's so e great videos, loves to post click bait videos. He made one on this topic but gave away nothing as he never gives anything away for free.
Can you please explain this in more details? I'm completely new to online business and have no previous background so I didn’t understand most of the video, so I asked AI and it said "However, there are some nuances....consult a tax professional"...for example, I want to run a subscription based web design agency and I am from a third world country where stripe and paypal isn’t available so eventually I have to open a uk or us llc company to be able to use stripe..and according to my understanding of your video, if I open a free zone company in dubai and let it own my us llc 100% then i won't have to pay any taxes cuz ultimately the free zone company in dubai is making all the profit not the us llc, since it owns 100% of us llc, and thus 0% taxes, correct? Please clarify. Love from 🇧🇩🇧🇩🇧🇩
I’d really love to consult with you in about a months time when I’ve got everything sorted out from my side and you help me set up a free zone company, can I still live in my countries of origin and withdraw cash from the dubai free zone company and only be held liable for dividends tax (which is 20% in my country) or will the free zone in dubai also he liable for corporate tax in my country? Thank you.
No country can charge corporate taxes from a company in another country. You’ll pay on the dividends only. Probably higher than the standard IRC in your country, if they don’t have a Treaty.
Awesome! How often would I need to file taxes in the US? Can I easily open a paypal account under the name of the LLC? Would it be possible to have multiple PayPal accounts for multiple LLCs? Thanks :)
Hi! If I live in Canada , my corporation currently is à Québec corporation. Would it be possible to keep living in Canada, have an LLC in US and transfer the money to UAE without having to leave Canada ? Or any money that is foreign if I still live in Quebec Canada will get taxed?
Thanks for this amazing content. I just wonder, do I have to live in UAE in this solution you explained? Imagine I am a UK rezident and want to follow that solution. Does it work? Please let me know. Cheers! Onder
Rafael you talk too fast through most of the important parts and I don’t know if that’s a sales tactic just to get people to setup a call or not but it’d be helpful if you went a bit slower when explaining the details - otherwise well put together info thus far!
How can you just transfer the money to the UAE company? Doesnt that count as dividends which isn't technically a business expense? They are not tax deductible
if someone has a nonforeign LLC, and selling consulting services to the US, should they get the stripe feature for collecting sales tax even tho is not a physical product?
Hey, when trying to complete a 6 month stay to claim residency in Dubai for tax purposes, are u able to leave the country for holidays and if so how long? Also, is there a certain amount u have to spend on a property before applying for residency? Thanks a lot.
Hey, what are your thoughts on setting up an office in the US for US clients which you just visit from time to time (as you don't recommend living their for tax purposes when you run your business from Dubai)?
I'm wondering: Why would you do this instead of having a webstore with your service as something you can buy online with Stripe and paypal and then just receive the money into you bank account directly?
Asset protection and extra fees. When doing business one of the worst things you can do is have one method of payment. Systems go down and fail. And sometimes you get holds. You want complete control if mercury can get it direct from payment processor then more power to you
Ah sorry I see you mentioned the 10.5% GILTI tax. If the Dubai company then pays out either a wage or dividends, how is this taxed as a US resident? Thanks!
![14 Biggest Tax Write Offs for Small Businesses! [What the Top 1% Write-Off]](/img/1.gif)
Man I really appreciate your effort, everything I need in 10 minutes
Good to know thank you for watching!
This is pure gem man!
Can you make a video explaining the legal structure more? Why the Arizona LLC versus Delaware or others, what freezone specifically you picked in dubai, etc?
I am learning so much from watching your videos. Thank you so much for sharing this amazing source of information. This one is quite helpful.
Why not just connect Stripe to the Dubai bank account? As per my understanding, customers just see the Stripe portal, they dont know if its going to the USA or Dubai. So, why create the extra layer of USA when it can be done only from UAE?
Outside the stripe link, clients generally don't like to deal with non western companies
How they gonna know on stripe or paypal payments that its linked to dubai bank account 🤔@@BDUDE
In that case it doesn't matter, but people won't be doing 5 figure plus transfers through a stripe page... people at that level would find ask about your bank
This really spoke to me. Set up a US LLC last year and beginning stages of looking at A FZCO. Might be your perfect client 😂
Curious about how the personal tax residency is connected. Been looking at Cyprus non-dom
Awesome man happy to help! The personal tax depends on where you live, Cyprus could be good but better have your residence in Dubai and connect your assets here
If everything is going great with the US LLC then why would you need to have a Dubai FZ company! In other words, if you are not paying taxes using the US LLC then what's the point of the FZ Dubai company!
@@sbadrawi2011a asset protection & investing. Potentially tax residence
@@sbadrawi2011a 1. If the members of the LLC is you, then you would’ve required to pay tax
2. If the member of the LLC is a FZCO , then the FZCO would be liable to pay tax ….
1. You=10% or 20% , or whatever %
2. FZCO = NO tax.
I have my US LLC for my online business. It works great. I hope in some years I'll have a free zone company in Dubai. Thanks
Definitely yes, let me know if you need help setting it up
This is a fantastic video. It's clear and easy to understand your explanations. Thank you for providing this information.
Your channel is a gold mine❤
I’m trying to understand why you need to set up in the US and then have it owned by a UAE company.
Why not just set up a UAE company.
Because he can then get a residency permit in uae, one factor that provides uae tax residency ie 0% tax
Man this vid is a gold mine, thank's a lot for what you're doing ! What if you're non-US resident ( instead you're tax resident of a territorial tax country) and bill US clients via your US LLC and transfer instantly that money to your UK LTD. In this case do you have to pay taxes to the US on US sourced income ?
I learnt so much from you in a few videos about where to setup best for crypto and citizenship than all the other YTs I have been watching for the past 2 years.
I like your video presentation. It is informative too, at the same time. Thanks a lot for your guidance!
Hi, What is the setup cost for this structure?
Isn't there transfer pricing rules and regulations?
You should have a uk company in between LLC and UAE to avoid any withholding tax issues
Great solution, Thanks a lot bud
Hi , quick question: What about the VAT you charge per service? Meaning would your invoices - USA LLC INVOICES - have the US TAX (local tax %) + the Amount you charge?
How do you then justify the money to go all the way up to the UAE company? Invoice it as consulting?
Thanks,
Tiago
I have the same question but for e-commerce (selling products). Trying to figure out how the sales tax is handled.
Update: I use TaxJar so I think it's just a matter of linking it my new (foreign) bank account. Still have to pay sales tax per each state as required.
@@mlee9049 I belive stripe has a feature where they collected does taxes, since each state has its own taxation which has to do with my client but not us. or am I wrong?
@@RookieSDR Please elaborate. TaxJar does everything. Even files for me. For U.S only though
What about EU options?
Thank you very much for this... I am definitely setting up a call with you
Dubai for the first time introduced taxes in main land companies , in case you want to do business in UAE you must have a mainland company set up not freezone
Wow! This Is Very Valuable Information. Thanks For Sharing 🙏🏾
Thank you for watching!
WOW, that's exactly what I'm doing, and already have mercury account for the US/FL company as non citizen (already dont pay taxes unless I employ a citizen and/or reside there for 6 months). Currently it's in my name, I was first considering to have a holding company in WY. Then I start to stumble across UAE and that is definitely the direction I am going for the holding company.
Wyoming is better than Florida and Cheaper!
I also have a mercury acc and company in WY.But i m not from US so do i have to file tax in US??
If everything is going great with the US LLC then why would you need to have a Dubai FZ company! In other words, if you are not paying taxes using the US LLC then what's the point of the FZ Dubai company!
@@sbadrawi2011a Dubai company is one of the members of the LLC - Dubai company pays UAE TAX on profits instead of US TAX which is higher!
I’m interested in learning more but I’m also a Spanish resident. Would you have any knowledge in how to help? Basically I’m starting an online business and want to minimize tax obligations in a US CITIZEN and Spain resident.
Would the IRS not expect to see some profits and tax for the US corp? Are they 100% ok with it just being used as a pass through like this?
I read reviews that Mercury freezes accounts without warning, same for wise
Great video!
If you have a US LLC you will need an EIN to open a bank accountant, how do you do this or get around this if the LLC member is 100% a Company and an offshore Company....?
Hmm, you cannot send money to parent company without proper reason, in this case is the capital distribution which implies withholding tax
That’s what I am thinking about too
@@erictan9274 yeah so one needs to be careful taking online advises
What is the purpose of putting FZCO instead of yourself as the beneficiary for a US LLC?
IRS will find out the ultimate beneficiary anyway, when you will receive EIN and you will have to disclose the information.
And especially with the new law (orporate Transparency Act), which started in January 2024, the point is completely lost, even if you don't get an EIN.
4:40
I don't understand, could you please clarify!? You say this setup is tax free for non US Citizens, then say i still need to pay taxes if i live in my country of origin! What do you mean?
What about VAT when you are selling online service to people all around the world?
is it also possible to have an existing US LLC and then later on create a company in Dubai and have the US LLC to be a subsidiary of the UAE company?
Do you need to add in your professional license that the FZCO also holds shares in other entities (which I believe is a commercial activity).
Do I need to pay state tax for the US LLC
What is strategy for capital gains tax for US Citizens?
Hey there... absolutely great content. I have a completely unrelated question, though: what is that wireless mic you are using in this video?
Thank you for the advices, well done
I thought also about this for online business. But I have another idea. Company in Cyprus and LLC in US. What u think on that?
Is this still applicable with the new Dubai laws? How would your advice change?
so this option isn't really available for Americans permanently living in the US?
Perfect structure for georgia aswell😁
Yes can definitely work but the banks will shut you down for large transfers unfortunately
Do you need to set up a company in Georgia as well or a bank account will just do?
Hi what about the VAT when you sell to companies or private people in Europe?
Awesome video bro, I'm not in the us or use but this still works worldwide right?
Great video but there is a problem... You can open up a US LLC and use neo-banks like Wise & Mercury with no issues at all. But as a non-resident of the USA, how do you set up Paypal & Stripe accounts for US customers to pay? This entire plan doesn't work if you can't use US payment processors.
simple, Stripe PayPal will ask for a US SSN (to prove you arre a citizen) or, a US EIN (to prove you have a company in the US). Use the EIN option.
Don't you need a Transfer Pricing (TP) document as these are transactions between related entities?
It's not a payment for the use of an asset, it's the shifting of profits from a company to another that just makes the scheme useless
Hi Rafael, please don’t mind but the person who is holding USA passport in their hand in the video at 2:13 possibly get your nail checked - the line in the nail can be an issue.
Could you explain why the US company owned by the UAE company doesn't have to pay any taxes to the US?
If it's owned by a non-US citizen, non-US resident then it doesn't pay any tax since LLCs are pass-through entities and taxed at the personal level.
@@WealthyExpat Thanks your reply, I'm currently not a US resident/citizen and I own real estate rental houses in the US, my LLC currently has to pay taxes.
What's the difference between the business you are describing and my LLC?
Is it because yours is an online business that does not serve US clients or it's because my business is in Real estate?
@@WealthyExpat Does this also include US-sourced income that made payment through WY LLC with foreign owner?
@@michelfahed I think that it has to do with the fact that the income you generate from your real estate is US sourced. In his case it is not US sourced (online).
I’m a licensed psychotherapist living in Vietnam. My company is technically owned by my Vietnamese girlfriend, however I also have a EIN tax ID number associated with this company (I’m American). I’m still paying 15% self employment tax every year. Can this be avoided?
How about CRS? If you are the director in the Dubai company, you'll be taxed. At least that's how it works in the UK.
Great presentation
I am an American citizen who recently just got dual citizenship in Italy. I live in Italy now. What’s the best way for me to start and LLC and have the least tax possible. Help!
Would this work on Malta or maybe Bulgaria instead of UAE ?? I'm in Italy but want to move and get better tax setup.. Thx
Why would I move the money to Dubai if I'm a non-US citizen/resident? i could just keep the money and spend the money thru the USA Company bank account and credit card
Brother like Mercury in USA, is there any bank in UAE as well in which we can easily open without living there and operate easily from any part of the world?
Great video, I’ll be in touch
hey what about if you have UK customers ? what do I do then
Would subscriptions for online content be considered local source of income in a territorial taxation country?
So when I setup a US LLC as a non US residence I pay 0% tax?
I am iranian but I have an Italian ID card and bank account ( no valid residemce permit at the moment tho) will I be able to work online and take benefit from this UAE zero tax program?
Where is the video for people living in US
I would love to see you do a video about which countries allow us to make deposits by bitcoin. I know there are a few. Andrew Henderson, who. She's so e great videos, loves to post click bait videos. He made one on this topic but gave away nothing as he never gives anything away for free.
Can you please explain this in more details? I'm completely new to online business and have no previous background so I didn’t understand most of the video, so I asked AI and it said "However, there are some nuances....consult a tax professional"...for example, I want to run a subscription based web design agency and I am from a third world country where stripe and paypal isn’t available so eventually I have to open a uk or us llc company to be able to use stripe..and according to my understanding of your video, if I open a free zone company in dubai and let it own my us llc 100% then i won't have to pay any taxes cuz ultimately the free zone company in dubai is making all the profit not the us llc, since it owns 100% of us llc, and thus 0% taxes, correct? Please clarify. Love from 🇧🇩🇧🇩🇧🇩
Great vid!
This will only work if you live in UAE or a country without CFC
How much you keep paying to Dubai for the Freezone, Visa, corporate Bank account and the corporate taxes ?
I’d really love to consult with you in about a months time when I’ve got everything sorted out from my side and you help me set up a free zone company, can I still live in my countries of origin and withdraw cash from the dubai free zone company and only be held liable for dividends tax (which is 20% in my country) or will the free zone in dubai also he liable for corporate tax in my country? Thank you.
Hi , did you found the answer at your question?
No country can charge corporate taxes from a company in another country. You’ll pay on the dividends only. Probably higher than the standard IRC in your country, if they don’t have a Treaty.
thanks mate
Dubai charges 9% tax now even in free zones is that correct?
My dream destination is Japan. How can I find out the tax benefits and legal structure to do business from
Japan?
This structure in great for the US, but won’t work for the EU because of the new ATAD 3 Unshell regulation
How does this work in Germany?
Awesome! How often would I need to file taxes in the US? Can I easily open a paypal account under the name of the LLC? Would it be possible to have multiple PayPal accounts for multiple LLCs? Thanks :)
You mean to say Dubai Freezone Company or InLand Company. ..?
How do you set up a usa-based Stripe account without having a USA address?
Can you please tell some other alternative for ppl like iranian citizens?
Also, regarding Freezone and Main....(?) businesses; what if you want to trade locally in Dubai And internationally?
Hi!
If I live in Canada , my corporation currently is à Québec corporation.
Would it be possible to keep living in Canada, have an LLC in US and transfer the money to UAE without having to leave Canada ? Or any money that is foreign if I still live in Quebec Canada will get taxed?
Awesome video, keep up the incredible work! :)
Thank you so much for watching!
Yeaaah… you kind of forgetting about transfer pricing, which is essentially a corporate profit tax in the US 😁
I'm from uk, any tips?
Will this still work if the US LLC is owned 50/50 by a Dubai FZCO and another company elsewhere?
How can I get in contact to speak with you?
Hi Rafael, question.. what if I earn my profits to my uae bank acc (wio) but actually live in EU (Hungary). Are there solutions to 0%? 😏 Thanks!
Thanks for this amazing content. I just wonder, do I have to live in UAE in this solution you explained? Imagine I am a UK rezident and want to follow that solution. Does it work? Please let me know. Cheers!
Onder
Rafael you talk too fast through most of the important parts and I don’t know if that’s a sales tactic just to get people to setup a call or not but it’d be helpful if you went a bit slower when explaining the details - otherwise well put together info thus far!
How can you just transfer the money to the UAE company? Doesnt that count as dividends which isn't technically a business expense? They are not tax deductible
Just create an invoice from the UAE company for some "service" you provided to the US LLC.
@@proro485 is that legal? Looks very much like a gray area.
How would this work for Canadian entrepreneurs ?
Same way, I wouldn't recommend Canadian non-residents to have a Canada company just so the CRA doesn't tag you back as tax resident
Does anyone know how to open the LLC in the US and incorporate it as the owner of the Freezone company? Anyone that's gone through the process?
if someone has a nonforeign LLC, and selling consulting services to the US, should they get the stripe feature for collecting sales tax even tho is not a physical product?
whats the difference between owning the US LLC yourself, or having the dubai company own it?
Do Wyoming LLCs owned by non-resident+non-citizens need to file taxes in the US?
You only need to file form 5472 thats all.
@@WealthyExpat thank you so much!
@@WealthyExpat do have to fill FBAR form? what about income and expenses of the LLC that flow onto personal income tax return in my home country?
Will this work for Amazon fba biz?
Hello, is it possible to set up a company in Dubai but without moving there. Thanks
Yes.
Hey, when trying to complete a 6 month stay to claim residency in Dubai for tax purposes, are u able to leave the country for holidays and if so how long? Also, is there a certain amount u have to spend on a property before applying for residency? Thanks a lot.
You can leave for holidays but keep it short at 7-10 days and no need to spend certain amount of time in the property just have the lease / deed ready
Hey, what are your thoughts on setting up an office in the US for US clients which you just visit from time to time (as you don't recommend living their for tax purposes when you run your business from Dubai)?
Illegal
@@momentumstocks3493 :))))
Why don't you qualify for the foreign exclusion as a bonafid resident of Dubai and not worry about the 330 days?
Can I transfer my existing US LLC to a company that I open in UAE?
Or is it necessary to open a new US LLC after opening the UAE Freezone co?
I'm wondering: Why would you do this instead of having a webstore with your service as something you can buy online with Stripe and paypal and then just receive the money into you bank account directly?
Asset protection and extra fees. When doing business one of the worst things you can do is have one method of payment. Systems go down and fail. And sometimes you get holds. You want complete control if mercury can get it direct from payment processor then more power to you
Hi there. Green card holder here living in the US. Would this work in my circumstance? You said it doesn't work if you live in the US.
Ah sorry I see you mentioned the 10.5% GILTI tax. If the Dubai company then pays out either a wage or dividends, how is this taxed as a US resident? Thanks!
As a US resident then the company would be engaged in trade or business in the US so it would pay regular corporate tax in the US.
and I dont have to pay self employment tax or any of that bs either because the American company made no money right?