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The Key Advantages of the American LLC

There's a reason the LLC is one of the most popular business entities in the USA: it can be classified as a partnership, it needs no share capital at all, and it gives you a lot of room to structure things your way. A possible exempt status makes it especially attractive for entrepreneurs living in non-dom countries. On top of that, it guarantees anonymity, can sponsor a US visa and, when set up correctly, offers favorable taxation.

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Want a US LLC that stays tax-free in the US? Then our sister site zerotax.llc is the right place. It covers the LLC for owners who live outside the US and whose business does not take place in the US: no permanent establishment, no US tax on the profit. This site covers the opposite: companies that genuinely operate in the US, have a permanent establishment there and pay taxes in the US. Both are run by the same firm in Austin, Mount Bonnell Advisors.

Twelve advantages at a glance

01–12
01

Limited liability company

For tax purposes, the LLCs we form are partnerships, with all the advantages that this status and limited liability bring.

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02

Possible exempt status

For entrepreneurs living in non-dom countries, or in countries with similar tax rules for foreign income, profits of exempt LLCs (with no US presence that would trigger tax liability) are tax-free in the USA. Learn more about the exempt LLC here.

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03

Confidentiality

The company's members are not reported to the state registry, so they are not publicly visible anywhere. Only the manager's details (usually the manager we provide) have to be listed in the registry.

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04

No information exchange

The USA does not take part in the international exchange of information under the OECD CRS. Its US equivalent, FATCA, does not cover accounts of US companies whose shares are held by foreigners. Learn more about OECD CRS & LLCs.

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05

Favorable taxation of your LLC's profits

Thanks to the 2017 tax reform, the USA taxes business profits particularly favorably. Learn more about LLC taxation.

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06

A second economic foothold outside Europe

Especially today, a US LLC can be the ideal second pillar for you outside the EU and the euro, helping you protect your wealth and income for the long term.

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07

Overdraft facilities from US banks

Unlike other foreign banks, some US banks grant overdraft facilities to new businesses after just 6 months. Credit lines of $50,000 to $500,000 are not unusual. Learn more about overdraft facilities for a US LLC.

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08

Double tax treaties

With the right tax structure, the company benefits from the advantages and protection of every double tax treaty the USA has signed. Learn more about LLC taxation.

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09

No VAT

There is no VAT in the USA. That means no tedious wait for a VAT number, less ongoing bookkeeping and better cash flow, since there's no VAT to account for. Learn more about LLC taxation.

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10

A strong reputation

As the world's largest economy, the USA has an excellent reputation as a company domicile. With an LLC, there's no risk of it being seen as a tax haven or low-tax country.

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11

Fast formation & account opening

Compared with other offshore companies, an LLC is formed quickly. The same goes for opening the bank account. The months-long waits common with bank accounts abroad simply don't happen.

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12

US visas and green card

With the right planning, the LLC can sponsor a US visa and a green card. Learn more about the US LLC as a visa & green card sponsor.

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Get advice now on US company formation & management, US taxes and entering the US market. Book a one-hour consultation to work through the details of your US plans.

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Advantages of the US C Corporation Entity type Advantages of the US LP Entity type US entity comparison Overview