Looks like Delaware LLC:s are not taxed at all. Only tax you pay is 400usd Franchise tax. Tax return itself can be 500-1000 dollars and if not made in time IRS could fine you for 10000usd.
thing is there are cost downsides (data etc) when trading thru a corp, regardless of tax consequences. 學海無涯
Hi, did you end up figuring out the answers to your questions? I'm wondering the exact same thing about setting up a LLC in Delaware for day trading as a non-resident. My understanding is that since a single member LLC is a pass-through entity i'd be taxed the same as a NRA without the LLC, which means if like you I'm a HK resident there's no capital gain tax. Would I even need to file a US tax return in this case if I trade through the LLC?
Hi, this might be a basic question..but why would it be difficult to open a brokerage account in the US for a foreign-owned US LLC?
Good question. Unfortunately the brokers don't specify that(only domestic LLCs allowed) anywhere so it's just a lot of wasted money going through the process.
Hi sorry didn't see your message. I haven't tried since 2019 so I can't say with certainty. Have you had any luck?
You’re only subject to tax in the country the brokerage is in, the country they report your transactions to is who you’ll send a percentage of your revenue to. Like if you trade HK stocks using a HK entity through a Jamaican brokerage, then you’ll pay Jamaican taxes not HK. (But there’s no tax on capital markets in Jamaica really), but this is just an example