The LLC outside the U.S. – advisably limited

In theory, the LLC is capable of acting outside the US. It must, however, fulfill the same conditions as the corporation in terms of an official U.S. location and an official U.S. contact person. This means that it must have a U.S. company address and a registered agent who will act as the contact person of the company for the U.S. authorities.

In contrast to in the U.S., the foreign tax authorities may establish whether an LLC operating in a foreign country is valued as a stock corporation or as a partnership. The decision of the authorities influences the tax evaluation of the company. It may be the case that the company founder has declared his or her LLC in the U.S. as a partnership, but, despite this, the same company is declared as a stock corporation in in their home country.

Our Advise

If partners are resident in outside the U.S., go the whole way and found a corporation. If, however, you would like to receive classification as a partnership, the founding of a Limited Partnership (Limited Commercial Partnership) in combination with a corporation is advisable. You should contact a tax advisor prior making a decision.