I am a citizen in both the EU and the US. I am planning to open an LLC in a tax-favorable state (i.e. DE or WY). I currently live in the US, but plan to move out to the EU (i.e. establish residency) and then travel the world for a year while creating social media content (which will be my source of income). I will not physically spend time in the US during the following tax year. Does an LLC make sense in this case? Will my original state in the US require me to file state taxes? Does it matter if I declare residency outside of the US? What are some good ways to avoid taxes in this type of situation?
Yes, forming an LLC in a tax-favourable state (e.g. Delaware or Wyoming) with residency outside of the US in the upcoming tax year may be beneficial, as it can help protect personal assets and provide tax savings.
Yes, you may have to file state taxes in your original US state but this may vary depending on the specific laws of the state. You should speak with an accountant for more details.
Yes, as a dual EU/US citizen living abroad, you must report your income to both the IRS and any applicable foreign jurisdictions. Depending on where you declare your residence, you may be subject to different taxation rates and could be liable for double taxation. It is important that you consult with a professional tax advisor to ensure compliance with all applicable regulations.
It's recommended to contact a tax advisor familiar with international taxation rules and regulations to determine the best strategies for reducing or eliminating taxes in this situation. Additionally, researching international agreements between the US and the country of residence may provide useful tax benefits applicable to dual citizens.
Answered 2 months ago
As a dual EU/US citizen living outside of the US, you may still be required to file taxes in the US and the EU. In general, US citizens are subject to US tax laws regardless of where they live or earn income.
However, as a US citizen living abroad, you may be able to take advantage of certain tax exclusions or deductions, such as the foreign earned income exclusion and foreign tax credit, to minimize your US tax liability. You should consult with a qualified tax professional who is familiar with both US and EU tax laws to determine your tax obligations in both jurisdictions.
In terms of your LLC, it may still make sense to establish one in a tax-favorable state, as this can provide certain legal and financial benefits. However, you should be aware that as a non-resident owner of a US-based LLC, you may still be subject to US tax laws and regulations related to foreign-owned entities.
Whether or not you declare residency outside of the US may impact your tax liabilities in the US and EU. If you establish residency in the EU, you may be subject to EU tax laws and regulations, and you may be able to take advantage of tax incentives or deductions offered in that jurisdiction.
In terms of avoiding taxes, it is important to note that tax avoidance strategies can be complex and may carry significant legal and financial risks. You should always consult with a qualified tax professional before implementing any tax avoidance strategy to ensure that it is legal and appropriate for your situation.
Answered 13 days ago
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