Offshore (Non-Resident) Delaware LLC for (day) trading US stocks

Discussion in 'Taxes and Accounting' started by blueraincap, Aug 24, 2017.

  1. Finlanta

    Finlanta

    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.
     
    #11     Jul 15, 2019
  2. thing is there are cost downsides (data etc) when trading thru a corp, regardless of tax consequences. 學海無涯
     
    #12     Jul 19, 2019
  3. otctrade

    otctrade

    Good luck finding a brokerage firm willing to open an account for a foreign-owned US LLC though.
     
    #13     Nov 24, 2019
  4. 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?
     
    #14     Apr 19, 2021
  5. 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?
     
    #15     Apr 19, 2021
  6. LLC is a LLC, so you will be treated like a LLC.
     
    #16     Apr 22, 2021
  7. otctrade

    otctrade

    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.
     
    #17     May 5, 2021
  8. gorkemk93

    gorkemk93

    I have called Fidelity and they told me it's ok? Is your message still valid now in 2022?
     
    #18     Feb 13, 2022
  9. otctrade

    otctrade

    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?
     
    #19     Nov 30, 2022
  10. 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
     
    #20     Mar 24, 2023