A retirement visa without a state pension: the pension LLC

A pension LLC is a limited liability company formed in the United States that grants its owner (you) a pension commitment.

The concept is anything but exotic:

Companies have long been allowed to promise pensions to their directors. The pension LLC takes this proven principle into a simpler, tax-free framework that works internationally.

The company is formed, typically in Connecticut, and its Operating Agreement includes a clause allowing it to pay a pension to its owner.

The LLC then formally resolves to pay the pension, issues a Pension Award Letter and transfers the agreed amount to your personal account every month.

These payments show up on your bank statements as "Pension Payment" and in many countries count as valid proof of retirement income, for example for a retirement or pensionado visa.

Since the 19th century, Connecticut has been the heart of America's insurance and pension industry.

Hartford, the state capital, is home to world-famous companies such as Aetna, Cigna, The Hartford and Travelers Insurance.

No other US state combines so much tradition, legal stability and credibility when it comes to employer pensions.

The legal basis is clear:

Under the Connecticut General Statutes, Title 31, Chapter 574, companies may set up their own Retirement Arrangements and Pension Plans for members or owners.

The state authorities are familiar with these structures, which makes notarizations, apostilles and international recognition of the documents much easier.

What this means for clients:

A pension commitment from Connecticut comes across as reputable, transparent and credible, and that is exactly what matters when immigration authorities abroad review your documents.

The pension LLC rests on four core legal documents:

1. Operating Agreement: the LLC's governing document, with the pension provisions built in

2. Pension Policy: an internal policy setting out the pension terms

3. Board Resolution: a formal resolution approving the pension payments

4. Pension Award Letter: the award letter confirming the start of payments

Mount Bonnell Advisors prepares these documents, has them notarized and apostilled by the Connecticut Secretary of the State, and then signs them as Company Secretary, not you.

This keeps everything professional and avoids any appearance of "self-certification".

Forming and fully setting up your pension LLC usually takes about four weeks.

After that, the LLC can start making monthly payments to your personal account.

To apply for a retirement visa, most countries ask for three to six monthly bank statements showing these payments.

Typically, the capital for the pension is first paid into the LLC's account, either as a loan or a capital contribution, and then paid out to you in regular installments.

Because it is your own company, the process is easy to manage and simple to adjust.

Many countries accept any regular, documented pension, whether it comes from a state or a private source.

The countries where clients of Mount Bonnell Advisors most often use this model successfully include:

• 🇨🇷 Costa Rica: minimum pension approx. $1,000 / month

• 🇵🇦 Panama: pensionado visa from $1,000 / month

• 🇵🇭 Philippines: SRRV pensionado visa from $800 / month (age 50 and over)

• 🇲🇺 Mauritius: Retirement Permit from $1,500 / month

• 🇲🇽 Mexico: temporary residence from $2,500 / month

• 🇹🇭 Thailand: Retirement Visa from 65,000 THB / month

• 🇪🇨 Ecuador: Pensionado Visa from $1,300 / month

• 🇺🇾 Uruguay: Pensionado Visa from $1,500 / month

• 🇩🇴 Dominican Republic: from $1,500 / month

• 🇦🇪 United Arab Emirates (Dubai): Retirement Visa from 3,750 euros / month

The exact requirements vary, but the core idea is the same:
regular, verifiable pension payments count as proof of income for the residence permit.

Mount Bonnell Advisors works with local attorneys and visa specialists in all of these countries and helps you prepare your documents and apply for the visa.

As long as your LLC has no permanent establishment in the US, it owes neither income tax nor corporate tax there.

There is also no bookkeeping requirement and no tax return.

Mount Bonnell Advisors handles all annual filings with the IRS, in particular Form 5472 and the so-called pro forma Form 1120, which serve purely statistical purposes.

Whether, and to what extent, the pension payments are taxable in your country of residence depends on that country's domestic law.

In most countries with retirement visa programs (such as Panama, Mauritius and the Philippines), foreign pension income is tax-free.

Even so, we recommend getting separate tax advice on this point.

The owners of a Connecticut LLC do not appear in the public business register.

Only the Registered Agent and the official business address are made public.

That gives you complete privacy, while your company still presents itself as an officially registered US business.

The LLC's pension commitment is not binding.

You can stop the payments or dissolve the company at any time.
If you have already received a visa by then, though, always coordinate any termination with a local legal advisor.

• Official, documented pension income from the USA

• Recognized by immigration authorities worldwide

• Tax-free in the USA (no bookkeeping, no filing obligation)

• Owner anonymity

• Apostilled, legally sound documents

• Flexible setup that you can terminate at any time

• Can serve as the basis for several retirement visas at once

The pension LLC gives entrepreneurs, the self-employed and expats an elegant, legal and tax-free way to create an official pension income, and with it access to the most attractive residency and tax programs in the world.

Mount Bonnell Advisors handles the formation, legal structuring and ongoing support of your Connecticut LLC, including all IRS filings, apostilles and pension documents.

If you like, we can also guide you through the visa application in your destination country.

If you want to find out whether a pension LLC suits your personal situation, the best next step is to book a consultation.

You can also order your company pension LLC directly through our sister site zerotax.llc. For more on how your company is treated for tax purposes, read Exempt LLC and US company and taxes in your country of residence. You'll find more articles under News.

Consultation & implementation

If you'd like to find out what this means for your own situation, the best step is to book a consultation.