Corporate account in EU for offshore companies

It is so hard to open a bank account for an offshore company nowadays! International regulations and laws do not allow banks to cooperate much with offshores. It is a sad reality.

Do you have a company set up in one of offshore jurisdictions and you need a bank account in EUR? If the answer is yes, then there might be a solution after all!

A payment provider in Lithuania is licensed by the Central Bank of Lithuania as an Electronic Money Institution (E.M.I.) and provides professional services within the framework of the relevant Law and the corresponding Directive of the European Parliament and the European Council. 

What is this corporate account all about?

It is one of the very few payment services that accept classical offshore companies without much struggle but can allow payments only within the SEPA zone. 

Not only that companies registered in offshore zones will be accepted (Seychelles, BVI, SVG, Nevis etc.) but also companies involved with crypto and IT activities.

However, it is not like any company can apply. There are limitations. Companies from the following countries will not be accepted: Afghanistan, Botswana, Bolivia, Burundi, Central African Republic, Chad, Democratic Republic of the Congo, Equatorial Guinea, Eritrea, Ghana, Guinea, Guinea-Bissau, Iran, Iraq, Libya, Mali, Myanmar, Nauru New Caledonia, Niue, Democratic People’s Republic of Korea, Palestine, Somalia, South Sudan, Sri Lanka, Sudan, Syria, Trinidad and Tobago, Tunisia, Uganda, Venezuela, Yemen.

What services does this payment service provider offer?

There are so many services that a payment service in Lithuania can provide to onshore and offshore companies.

First and most important, bank transfers. Clients can perform domestic or cross border transfers. Merchant accounts are also available- provider helps multi channel businesses accept payments through optimized configuration, aimed at enhanced customer experience and increased revenue. Lastly, OTC Desk provides a secure platform for businesses and individuals to buy, sell and store virtual currencies including Bitcoin, Ethereum, USDC stablecoins and more. Last and not the least, personal account opening is also available!

What do you need to open an account with the EU PSP?

Account can be opened completely remotely and within 2 working days. You just need to make sure you have all the required documents first and if you do not have them with you – make sure you can get them. Findove will talk to this payment service and check if they are interested to open an account for you. If we get the positive answer, you can apply for account opening. Documents confirming beneficial owners, director’s and company’s identity will be required. 

You should choose this provider if bank transfers within the SEPA zone are enough for you, and if not – we will find another solution for you. The other good reason for this payment service to be on the top of the list of your choice is that the account can be open almost instantly. Remember, this is not the case with traditional banks that sometimes need a lot of time to decide whether they want you as a client or not!

What are the tax obligations of a Non-Resident Owner Of A US LLC?

Do I have to pay taxes in the United States if I use a non-resident US LLC company?

A US LLC owned by a single member, not a resident of the United States it is not treated by IRS. As long as you are not engaged in trade or business in the United States, your LLC does not pay taxes in the United States. This relates to Federal, State, Income and Sale tax. A limited liability company (LLC) is a popular choice of entity for conducting business or holding rental real estate in the United States. It is a business structure you can form in any one of the fifty states.

How do I know if I am engaged in a trade or business? 

Having an employee or an agent doing the work solely for you or any type of dependent agent in the United States will be considered a trade or business. Administrative tasks are not considered to be a part of the dependent agent scheme. If you just use service providers, your LLC company will not be taxed. The point is that you do not want to employ or have agents working exclusively for you in the US.

Which forms does a foreign-owned LLC have to do to file?

Although there are ways to really optimize your taxes in the United States there is still some mandatory paperwork to be done:

  • Get an Employer Identification Number (EIN, or federal tax number)
  •  File Form 5472 if there have been any “reportable transactions” during the previous tax year (Formation and dissolution filings are considered to be reportable transactions)
  •  File pro forma Form 1120
  •  Maintain books and records to support the claims you make on Form 5472

A US-based LLC can have great tax advantages, especially for foreign entrepreneurs abroad.