LLC Company USA: definition and benefits

A U.S. LLC (limited liability company) is a hybrid business form between a corporation and a partnership.

Indeed, it is a so-called semi-transparent entity from a tax point of view; meaning that the company must declare a profit, but it is the partners who are personally liable for the taxation. Moreover, it has the advantage of limiting the liability of the partners.

It is possible to incorporate an LLC in the United States while being a tax resident of any country. Indeed, the United States has signed a bilateral tax treaty with more than sixty countries. The tax understanding of the LLC and the legal form as such has important advantages; which we will explain in this article.

It is essential to approach a formal expert for the creation as well as the management of the social life of your LLC (tax declarations etc.), which, being a company under American law, presents certain particularities and a specific technicality. The specialists of Expert LLC USA are present to inform you and answer all your questions.  

What is an LLC USA?

A U.S. LLC (limited liability company) is a corporation under U.S. law, which can be formed in any U.S. state. It was created as an important and efficient investment vehicle in the United States. An LLC can be either a single or multiple partner company. The LLC can conduct various types of economic activities: real estate, trade, import/export, investment (crypto, stocks, etc.), consulting, etc. The operating agreement is the legal document that explains the corporate purpose of the company; it is often also referred to in the articles of organization (or formation) of the LLC.

The LLC is a semi-transparent corporation for tax purposes (also called a partnership); meaning that the partners are personally liable for taxation in their country of residence. With a tax-advantaged residency, the owner of a U.S. LLC can significantly lower his or her taxes.

This corporate form can be formed by Americans as well as by foreigners who want to do business in the United States or reach American customers.

Any foreigner can form a U.S. LLC from anywhere in the world without having U.S. citizenship.

What are the advantages of creating a U.S. LLC?

The flexibility of deductible expenses

The American LLC is more flexible regarding deductible expenses compared to French companies. At the time of the tax returns, our expert formalists (in partnership with American chartered accountants) are able to know the deductible expenses and thus reduce the amount of your taxation.

Flexibility in operations advantageous to e-merchants

The LLC presents a certain flexibility for Amazon sellers, dropshippers, traders etc. These professionals who operate a dematerialized activity can very well reside in France and hold an LLC while taking advantage of the tax and legal benefits allowed by this corporate form.

An advantageous tax system for an entrepreneur living in France

The profit will be fully taxed in the hands of the partners, up to their share of participation, as part of their income tax for individual partners.

The hybrid status of the LLC

It combines the advantages of a limited liability company (the partners do not incur personal liability) with those of a personal business (profits taxed directly in the name of the partners).

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The LLC is recognized by French tax law thanks to the Franco-American tax treaty of August 31, 1994(Article 7 of the treaty), thus, the French entrepreneur is not subject to U.S. corporate income tax and is also not doubly taxed (due to tax semi-transparency).

Highly effective asset protection

The LLC separates the personal assets of the partners from the assets of the partnership, thus preventing the personal assets from being used to pay off the creditors of the partnership.

Very few administrative constraints

it is possible to set up a simple accounting system without the assistance of a chartered accountant, thus, the cost of managing the operations of an LLC is quite lower than that of French companies.

Freedom for the manager to dispose of his cash

It can dispose of them without waiting for the balance sheet to be closed. Indeed, the partners themselves decide on the frequency of distributions made by the LLC.

The anonymity of leaders (in some American states)

This is a safety net to protect against potential third party claims.

The specialists of Expert LLC USA are at your disposal to answer all your questions. You can make an appointment directly online, where you can ask all your questions to our experts.