U.S. LLC in Germany

[stevynhydex]

Does anybody know if I can operate a US LLC from Germany. We’re dual citizens if that helps. It’s not our main income but we a bunch of small income coming form it, several 100s of dollars a months, so don’t want to lose it.

I know taxes I need to figure out with an accountant in Germany but does anybody have experiences with it?

Also it’s all SaaS business or digital products. Not selling any physical products. Customers are primarily in the U.S. but not exclusively

 

[stanleylynch]

@stevynhydex Pretty much anyone who isn't prohibited by AML / KYC regulations or sanctions can establish an LLC in the United States (so no drug lords, IRGC, or Russian kleptocrats). Depending on the state, you may need a resident director or officer, but most states will let you appoint a local agent if necessary. So as far as the US is concerned, you can almost certainly open and operate an LLC from Germany.

As far as Germany is concerned, however, that may be a different story as you'll need to comply with local tax laws and regulations. Do you need a business license to manage the LLC from Germany? Does the LLC need to pay local social insurance taxes? Do you need state permission to work as an independent? And on and on.

 

[claudiarm2]

@stevynhydex Yes, you can register via Stripe atlas, set it up as a C-corp, pay 21% tax to fed then remit funds to Germany. Double check with local tax expert for Germany and US. check Upwork

 

[trantrang2461]

@stevynhydex I would look into the tax consequences of doing this from the German perspective. Also this likely falls under German Controlled Foreign Corporation rules

 

[stanleylynch]

@trantrang2461 OP needs to go through the US-Germany tax treaty with a fine-tooth comb. If OP works from Germany and the LLC is taxed as an S-Corp, it's likely the LLC will be taxed as a German entity. If the LLC is taxed as a C-Corp, however, there may be a provision in the treaty to tax the LLC as a US entity.

 

[ashp530]

@stevynhydex I’m looking into a similar situation operating a LLC in Finland if we relocate there. It’s likely going to be taxed as a corporation in finland though so makes sense for me to sell prior to relocating (portfolio of rental homes / not a SaaS business).

 

[jeewa123]

@stevynhydex The German tax authorities will consider this a German company since the company is controlled ‘from German soil’ and will expect you to adhere to all German regulations and taxes. Basically if you do this by the book, you have whatever the US rules and obligations are and then add the German ones on top.

I recommend talking to a “Steuerberater” who has experience dealing with international companies and figure out what the easiest way is to continue operating the business while in Germany.

 

[pilot2015]

@stevynhydex Why not?

 

[stevynhydex]

@pilot2015 Can you be more specific with your why not?

 

[pilot2015]

@stevynhydex Residency doesn’t proclude you from operating ‘an’ LLC from Germany but depending on the state of incorporation there might be rules and regs you’d need to adhere to.

 

[pilot2015]

@stevynhydex Your question is can I operate a US LLC from Germany, the answer is Yes in my opinion, do you think differently? Hence my question, why not.

 

[pilot2015]

@stevynhydex There are many other considerations! Depending on where you are taxed, your tax liability might change based on residency etc. Of course the us taxes you on world income so no matter residency you’ll have to file us taxes. German taxes are tax deductible in the us but I’m sure your us cpa has told you all of this, right?

 

[pilot2015]

@stevynhydex Than of course you are aware of the new federal us regulations pertaining to new FinCen regulations in the us that require you to report beneficial ownership information in the us. Sure your CPA and attorney have made you aware of that, right?