US LLC or Aust Pty Ltd ?

[BlkNite]

Hi guys ,

I am after a piece of advise , I am starting up couple of reference websites i.e. they are like blogs having reviews of products and links of products on Amazon.
Every click pays me a % and mainly US mkt will be targeted with this.

Now , I already have Australia Pty Ltd , I wanted to know if I shall register my sites on my existing Company name or shall a get a Delware or Nevada LLC ?( Or Do I need to have a US LLC to operate my sites)

What about benefits / negatives of both in my scenario ?

Appreciate that in adv.

Thanks !!

 

[Paul@PFI]

You need personal tax advice that explains how a US LLC may invoke a tax problem with the IRS, ATO and ASIC. A LLC is a US entity. A LLC may be treated as a public company here and lead to all sorts of issues including Part IVA.

 

[BlkNite]

You need personal tax advice that explains how a US LLC may invoke a tax problem with the IRS, ATO and ASIC. A LLC is a US entity. A LLC may be treated as a public company here and lead to all sorts of issues including Part IVA.

Thanks and who can give me that advise , Any recommendations plz ?

 

[Terry_w]

You would also be taxed here as well as the USA. Best to avoid any connection to the US for tax reasons I think.

 

[BlkNite]

Thanks Paul and Terry.
I will cont with my ACN than , just a question ,After leaving tax withheld amount , I can transfer remaining to my personal acc as dividends ?

My previous setup , 6 weeks contract that I did with ACN , was paying myself salary. Can I pay dividends to myself now and Do I need to declare it to ATO that I am paying dividends to myself ?

 

[MTR]

Hi guys ,

I am after a piece of advise , I am starting up couple of reference websites i.e. they are like blogs having reviews of products and links of products on Amazon.
Every click pays me a % and mainly US mkt will be targeted with this.

Now , I already have Australia Pty Ltd , I wanted to know if I shall register my sites on my existing Company name or shall a get a Delware or Nevada LLC ?( Or Do I need to have a US LLC to operate my sites)

What about benefits / negatives of both in my scenario ?

Appreciate that in adv.

Thanks !!

This is my US accountant he is brilliant and should be able to help you with the US side of things, he has many Australian clients.
My experience with him so far has been excellent.

Giese Swany LLC
PO Box 5450
Incline Village, NV 89450
PH 775-298-4333
FX 775-298-4225
www.gieseswany.com

 

[BlkNite]

Thanks MTR , I have made up my mind and will use my ACN for now where needed. Later I can see if i need any changes .

By the way , Do we know how does ATO tracks foreign income coming into my bank or Paypal account , Unless untill I declare do they have a mechanism of saying that Mr XXX u got 2000$ this month from outside Aus ?

 

[Terry_w]

Thanks MTR , I have made up my mind and will use my ACN for now where needed. Later I can see if i need any changes .

By the way , Do we know how does ATO tracks foreign income coming into my bank or Paypal account , Unless untill I declare do they have a mechanism of saying that Mr XXX u got 2000$ this month from outside Aus ?

ACN means Australian Company Number.

ATO using Austrac and data sharing with other countries. Austrac is a software system which captures details every foreign transaction (and every domestic too). Sender, recipient, account numbers, addresses, contact numbers, names and amounts.

 

[BlkNite]

ACN means Australian Company Number.

ATO using Austrac and data sharing with other countries. Austrac is a software system which captures details every foreign transaction (and every domestic too). Sender, recipient, account numbers, addresses, contact numbers, names and amounts.

Thanks , Sorry I mean my Pty Ltd.

 

[BlkNite]

Hi guys , Who knows if a non US resident (not present in US) can open and operate a US bank account ?

Is wire transfer from US bank to Aus bank , the best way to move $$ from US to Aus ?

 

[Paul@PFI]

Hi guys , Who knows if a non US resident (not present in US) can open and operate a US bank account ?

Is wire transfer from US bank to Aus bank , the best way to move $$ from US to Aus ?

Anyone can open bank accounts or move $ after they satisfy ID requirements. The bank may impose withholding tax and will report transactions etc.

Swift is used by many banks and financial institutions. There are also some emerging P2P services. Fees, charges and currency rates vary a bit so shop around.

If you remit USD to an AUS bank account the receiving bank will convert to AUD at an aweful rate as AUD accounts can only hold AUD. Watch that scam. But if you have a USD account here you can control its conversion timing and rate subject to the institution. (eg CBA USD account - Guess who will do the Fx rate ??)

For example you can open a CBA USD account and then wait and choose when to convert it to AUD or any other currency. You will be in control.

All major banks offer international accounts in major currencies. Obviously limits, fees etc apply.

 

[MTR]

I use xe Trade, only pay $23 per transaction, excellent rate when converting from US to Au$, wire/debt from my US Bank account directly into my Australian Bank.

I believe you can do the same with OzForex now but no fees whatsoever, excellent rates. ?? I don't use this, so you may need to do your own homework here.

I am very happy with xe Trade so will just continue to use this

MTR

 

[Aaron Sice]

You would also be taxed here as well as the USA. Best to avoid any connection to the US for tax reasons I think.

only if you bring it back here.

if you quarantine your income there, you only pay 15%.

even if you did bring it back, you would only be subject to the difference between 15% and the Aussie tax rate.

if you want an LLC incorporated in Delaware - good luck! every business wants to be incorporated out of Delaware, even a PO Box is sometimes "sub-let" two or three times over with auto-redirects on the mail....

 

[Aaron Sice]

Anyone can open bank accounts or move $ after they satisfy ID requirements. The bank may impose withholding tax and will report transactions etc.

that's a W8-BEN form and it's not easy.

 

[Paul@PFI]

only if you bring it back here.

if you quarantine your income there, you only pay 15%.

even if you did bring it back, you would only be subject to the difference between 15% and the Aussie tax rate.

if you want an LLC incorporated in Delaware - good luck! every business wants to be incorporated out of Delaware, even a PO Box is sometimes "sub-let" two or three times over with auto-redirects on the mail....

Incorrect. Worldwide income is taxable for an AUS resident. The IRS and ATO share data now.

 

[Hooray]

Incorrect. Worldwide income is taxable for an AUS resident. The IRS and ATO share data now.

I seem to have learned at school that a company is a separate legal entity.

 

[Terry_w]

I seem to have learned at school that a company is a separate legal entity.

It is. But the tax laws have special rules for foreign controlled companies that are controlled by Australian residents.

This is no doubt to reduce the effects of people setting up companies in tax havens and not paying tax here.

 

[Aaron Sice]

My LLC pays 15%, income is quarantined in the USA. I don't bring it back - as in, I don't wire the money trans pacific.

The LLC rolls the cash over in the USA for use inside the USA only.

My current advice is that it's not taxable in Australia.

 

[MTR]

that's a W8-BEN form and it's not easy.

I have 3 bank accounts in USA, one which I opened when I was there, the other 2 my lawyer set up for me.

Perhaps things have changed.

 

[Aaron Sice]

your lawyer would have "vouched" for your identity, citing existing accounts etc.

I have had to do two W8BENs - one for the London acc and one when I started here - but I'm talking over 4 years ago now.