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With the start of the new year, we are forced to review the obligations and formalities involved in maintaining our business Business abroad. One of the most widely used compounds within the technology business is status Limited Liability Companies (LLC) from the United States.
Brief description of the path to outsourcing
The accelerated digitization process in recent years has allowed for a remarkable development in… Cross border business Technology. Global demand for services Software development, mobile technologies, online sales, commerce, digital marketing, and programming It has grown significantly in recent years and is expected to have a steeper curve in its increase.
This trend, promoted by companies and government programs to promote computer gadgets, has allowed it to be well received locally. Through continuous training on technological tools that provide skills to professionals at the standards required around the world. Technological knowledge is extensive and the method to achieve it is relatively simple. Under this hypothesis they proceed through the influence of contagion as if they were equal cases to each other. If the elements are the same, everything works the same way!
Thus, a segment of society, especially young people, understands this Your business can be taken abroad With dynamism and Basically a financial benefit. A place where, despite the lack of certain measures to promote their activities, there are no obstacles hindering the development of their business, and this leads to very rapid growth.
Selected destination: United States
construction Vehicles of foreign companies It is offered as an option for developing activity abroad. Current and multiple offers that are presented in digital media presentation Quickly get into the community If used to pay a utility bill abroad. This is how it is one of the most widely used and promoted corporate vehicles American limited liability companies. In addition to the tax advantages they offer, they have other aspects that make them the most popular choice People who reside outside the United Stateswho have decided to expand their business into that jurisdiction.
In principle, they are Companies merged with some easeIts executive body may consist of non-American persons in addition to all of its partners. Another important point is that Opening bank accounts is relatively simple. They could be Exempt from Income tax, As long as there is no physical presence in the country, they offer a simplified system for issuing receipts and, above all, are very flexible when it comes to their management.
Is Argentina strange to my business abroad?
Argentine tax regulations have incorporated changes since the 2018 tax reform by expanding the scope of taxes International tax transparency system.
in it art. 130 of the Income Tax Law This system was developed in connection with the moment of calculation of profits and expenses from foreign sources. Subsection e) deals specifically with the profits earned by the country's residents Participation in companies or other entities abroadIt stipulates that it will be charged to the fiscal year or the fiscal year in which the annual fiscal year of these companies ends in proportion to their participation.
However, the most interesting thing about the article is in the second paragraph where it indicates that the aforementioned attribution is consistent When the car does not have tax personality. A concept that has been incorporated into the regulatory decree of the Income Tax Law. Article 288 of the above-mentioned rule specifies that a company or other entity of any kind resident abroad does not have tax personality when it is not considered a subject obligated to pay tax under tax legislation analogous to income tax of the offshore jurisdiction. .
This organizational establishment aims Directly to limited liability companieswhich has the characteristics of a capital company, but also presents certain characteristics of a company without personality.
For example, in the United States they usually “transparentAt the federal tax level, an LLC can choose to be taxed as a entitytreated like a partnership Or in the case of one partner, it will be considered a Neglected entity. In the last two cases, You are not subject to taxes on the income generated, as it is taxed on the heads of the limited liability partners. Therefore, Argentine residents who own shares in companies that do not have tax personality, as in this case, must allocate their income and expenses in proportion to their holding in the tax period that corresponds to the closure of the company or entity abroad, without regard to the distribution of these profits to its partners. .
Obligations of limited liability companies in the United States
The way to incorporate this type of company is very simple, as well as to manage and operate it. This could lead to Breach of obligations These entities require within their jurisdiction of registration, registration obligations, with respect to state and agent fees, and filings to the IRS (Internal Revenue Services) Regarding Tax revenues annual.
In most cases, there are specialists from the United States who submit the corresponding forms on time, or request an extension of the deadline with the IRS. Conversely, it also happens that the owners are completely unaware of the obligations that come with being accountable to the IRS for a US-registered company. This action leads to a Total penalties Which, when they indicate non-compliance by foreign investors, tends to be very onerous.
In addition to formal fines for non-attendance in terms of Federal tax returnsThere are related ones International information data.
Within the framework of the latter, one of the most severe penalties, which, it should be noted, has aroused greater interest since the last regulatory amendment among corporate officials in the United States, was published on December 13, 2016 as the IRS added new obligations to Section 1.6038A-1 of the Code. Federal regulations. These new changes came into effect on January 1, 2017 and now also affect all foreign-owned LLCs. This section deals with Commitment to providing a large amount of information annually With respect to foreign-owned entities, when ownership is by a non-U.S. person/entity Equal to or greater than 25% From their voices.
As for the penalty itself, the entity will be accountable to A A fine of $25,000 for each year of non-compliance In providing information within the specified period, or in the event of failure to update records.
At the same time, as described in paragraph 2 of point d) of Section 6083 of the Code, if any non-compliance continues more than 90 days after notification, a fine will also be imposed $25,000 per 30 day period During which non-compliance continues after the expiration of the ninety-day period.
As a final reflection on this brief description of the main characteristics and liabilities of Limited liability companies, it doesn't all end with a simple online creation process. We must take into account both sides of the coin, both Dividend distribution The foreign source from the local perspective as well Annual obligations and significant penalties In front of the US Treasury.
Moreover, it is necessary to be knowledgeable about the topic Existing automatic financial information exchange agreements Signed between the two countries, and its possible consequences for residents of Argentina.
Also consider the significant responsibility that includes being a representative of a subsidiary before the IRS, complying with formal obligations for annual tax or international information filings, and, as of January 1, 2024, complying with the FINCEN ultimate beneficiary regime. .
The implementation of a foreign entity should depend not only on ease of establishment, management or business image, but on extensive knowledge of international issues and the accounting, legal and tax consequences that may arise from its selection.
