How to Register a Business in the US from Liechtenstein

Step 1: Benefits of starting your US business from Liechtenstein

Liechtenstein offers a unique strategic advantage for entrepreneurs looking to start a US business. This picturesque European nation, known for its economic stability and favorable tax regime, provides a business-friendly environment that significantly eases the process of international expansion. Leveraging its well-established financial sector, which includes numerous banks adept at handling international transactions, businesses based in Liechtenstein can take full advantage of efficient financial services to ensure smooth operations across borders. Additionally, Liechtenstein’s strong legal framework and wide-ranging tax treaties can provide considerable tax benefits and reduce liabilities for businesses entering the US market.

Moreover, Liechtenstein’s central location in Europe makes it an optimal hub for reaching not only the US but also other key global markets. The country's compact size belies its robust infrastructure and connectivity, enabling seamless communication and logistics. From Liechtenstein, US-based entrepreneurs can manage their operations with ease, enjoying the benefits of a high-quality work-life balance and exceptional safety. The combination of these strategic advantages makes Liechtenstein an ideal starting point for any US business venture looking to expand internationally.

Step 2: How to start your US business from Liechtenstein

Starting a US business from Liechtenstein involves several steps. Initially, it is essential to choose the type of legal entity you want to form in the United States, such as a Limited Liability Company (LLC), Corporation, or Partnership. Each structure has its regulatory requirements and implications. Many entrepreneurs opt for an LLC due to its flexibility and protection of personal assets. After determining the business structure, you must select a state for registration. Delware and Wyoming are popular choices due to their business-friendly regulations and simplified processes for foreign owners.

The next step involves registering your business with the chosen state's Secretary of State. This typically requires submitting formation documents and paying the necessary fees. It is also crucial to obtain a Federal Employer Identification Number (EIN) from the Internal Revenue Service (IRS), which acts as a unique identifier for your business. Additionally, depending on your business activities, you might need specific permits or licenses. To manage these processes efficiently, consider enlisting the help of a qualified legal or business consulting firm familiar with US business regulations. Lastly, setting up a US-based bank account can facilitate smoother financial transactions and operational convenience.

Step 3: Opening a Business Bank Account

A business bank account is a separate account that is used exclusively for business transactions. But why is it important to open a business bank account?

Keeping your personal and business finances separate is crucial. A dedicated business bank account allows you to do just that, making it much easier to track your business’s income and expenses. This clear separation translates to simpler tax reporting come tax season.

But the benefits go beyond bookkeeping. Having a separate account can provide legal protection. It establishes your business as a distinct entity from yourself. In the unfortunate event of a lawsuit or bankruptcy, this separation can help shield your personal assets from business liabilities.

Furthermore, a business bank account can boost your credibility and project professionalism.

It demonstrates to clients and vendors that you take your business seriously and are committed to maintaining accurate financial records. This can be especially important in establishing trust with potential partners.

Finally, a business bank account is essential for accepting payments, even if you utilize a merchant account. Whether you use doola or another service, funneling those customer funds into a dedicated business account is necessary.

doola partners with banks that allow you to open a bank account remotely from anywhere in the world, like Mercury. Shop around and compare different banks’ fees and services.

Look for a bank that offers the features you need, such as online banking, mobile banking, or overdraft protection.

You may also want to consider working with a bank that specializes in small business banking.

Step 4: Understanding Your Compliance Requirements in Liechtenstein

Understanding Compliance Requirements for Running a US Business in Liechtenstein

Establishing a US-based business in Liechtenstein involves navigating various compliance requirements to ensure smooth operations. Understanding these intricacies is crucial for success. Here are key considerations:

1. Legal Structure

In Liechtenstein, businesses typically operate as either Sole Proprietorships, Limited Liability Companies (LLCs), or Stock Corporations (AGs). Choosing the appropriate structure impacts taxation and other legal obligations.

2. Registration and Licensing

Registering your business with the Liechtenstein Commercial Register is mandatory. Additionally, obtaining necessary permits and licenses relevant to your industry is crucial for legal operation.

3. Taxation

Liechtenstein has a favorable tax regime, but compliance with tax laws is essential. Key tax considerations include:

• Corporate Income Tax: Liechtenstein levies a flat corporate tax rate of 12.5%.
• Value Added Tax (VAT): The standard VAT rate is 7.7%, with reduced rates for specific goods and services.
• Withholding Tax: Dividends, interest, and royalties may be subject to withholding tax.

4. Employment Laws

Employing staff in Liechtenstein requires adherence to labor laws, including contracts, working hours, minimum wage, and employee benefits. Social security contributions are also mandatory.

5. Data Protection

Complying with the European Union's General Data Protection Regulation (GDPR) is essential for handling personal data of EU citizens. This includes data collection, processing, and storage practices.

6. Financial Reporting

Businesses must maintain accurate financial records and adhere to reporting standards. Annual financial statements must be submitted to the Liechtenstein tax authorities.

1. Maintain clear and transparent accounting records
2. Ensure timely submission of annual financial statements

7. Anti-Money Laundering (AML) Compliance

Given its reputation as a financial center, Liechtenstein imposes stringent AML regulations. Businesses must establish robust AML policies and procedures to prevent financial crimes.

Conclusion

Understanding and adhering to the compliance requirements for operating a US business in Liechtenstein is fundamental for regulatory adherence and operational success. By carefully considering these factors, businesses can thrive in Liechtenstein's favorable economic environment.

doola offers a Total Compliance package, including bookkeeping services, to help you stay on top of your compliance requirements. This ensures your business operates smoothly and adheres to all legal and regulatory standards.

Step 5: Understanding Your Tax Obligations in Liechtenstein

Understanding Tax Obligations for US Businesses in Liechtenstein

When running a US business in Liechtenstein, understanding the tax obligations is crucial for compliance and financial planning. Below are key considerations for navigating this complex landscape:

1. Corporate Tax Rates

Liechtenstein has a standard corporate tax rate of 12.5%, which applies to both local and foreign businesses. Companies may be subject to additional special taxes depending on their activities and income sources.

2. Double Taxation Treaties

Liechtenstein has several double taxation treaties in place to prevent the same income from being taxed in both Liechtenstein and the US. It's essential to review these treaties to understand potential tax relief options.

• Ensure your business qualifies under the treaty stipulations
• Proper documentation and tax residency status must be maintained

3. Value Added Tax (VAT)

Liechtenstein applies a standard VAT rate of 8% on most goods and services. Businesses must register for VAT and ensure compliance with filing requirements.

1. Determine if your business activities fall under taxable goods and services
2. Maintain accurate records for VAT return filings

4. Withholding Taxes

Liechtenstein imposes withholding taxes on certain types of income, such as dividends, interest, and royalties. Understanding these rates and potential exemptions under double tax treaties is crucial.

• Assess the application of withholding taxes on outbound payments
• Leverage available exemptions to reduce tax liability

5. Transfer Pricing Rules

Businesses operating in Liechtenstein must comply with transfer pricing regulations to ensure intercompany transactions are conducted at arm's length. This can impact pricing strategies and tax calculations.

6. Compliance and Reporting

Strict compliance with local tax laws and timely reporting is mandatory. Non-compliance can result in penalties and increased scrutiny from tax authorities.

• Adopt robust accounting systems to track financial transactions
• Consult with local tax advisors for up-to-date compliance requirements

7. US Tax Obligations

US businesses must also consider their tax obligations under US law, including potential foreign tax credits which can offset double taxation.

By understanding these considerations, US businesses can effectively manage their tax obligations while operating in Liechtenstein, ensuring legal compliance and optimizing their financial strategies.

It’s a good idea to consult with a tax professional or an accountant (or to hire these roles in-house) to make sure you’re not missing anything.

doola's Total Compliance package can handle your tax filings for you, ensuring you remain compliant with federal, state, and local tax requirements.

Step 6: How doola Can Assist

doola simplifies the incorporation and setup process for your company, ensuring you’re ready to charge customers, hire your team, and raise funds as quickly as possible.

Fill out your company details in the doola form in less than 10 minutes. Then, we’ll incorporate your company in any of the 50 US states, get your IRS tax ID (EIN) for you, and file your 83(b) tax election if needed. 

doola can also help you open a bank account and start accepting payments even before the IRS assigns your tax ID.

doola founders also gain access to exclusive discounts at leading software partners, one-click onboarding with select partners, and free CPA consultations.

The doola Application

It takes less than 10 minutes to fill out the details of your new company. You’ll choose your company structure (C corporation, limited liability company) and pick a company name.

Our instant company name checker will let you know if it’s available before you submit your application. You’ll add an address and phone number and review and sign your EIN SS4 letter in one click.

Forming the Company

doola will review your application and file your formation documents in the state within one business day. doola charges $297 for our Starter Plan and your first year of registered agent services (a state compliance requirement), and $297 each year thereafter to maintain your registered agent. 

You can also opt for our Total Compliance plan.

Getting Your IRS Tax ID (EIN)

After your formation in the state is complete, doola will file for your company’s IRS tax ID. Founders who provide a US Social Security number, US address, and US phone are eligible for expedited processing. All other users will receive standard processing. 

For standard orders, doola will fax your form SS4 to the IRS and then call the IRS to retrieve the EIN for you to expedite the process if we can, using real-time IRS data to determine when your filing is likely to be available.

Filing Your 83(b) Tax Election

Many startup founders choose to file an 83(b) tax election to potentially save on future personal taxes. doola can file and mail your 83(b) tax election in one click for both US and non-US founders — no trip to the post office required.

We’ll file it using USPS Certified Mail with tracking, and you’ll get a copy of your signed 83(b) election and proof of filing in your Dashboard.

Partner Perks and Discounts

doola partners with a range of third-party tools to offer special pricing or access to founders. We offer discounts on engineering, tax and finance, compliance, and operations tools, including Amazon Web Services.

doola also partners with Mercury to provide faster, automatic onboarding using your doola company information so you can get ready to bank and fundraise even faster.

Founders may also access discounts on other doola products, including up to one year of free credits toward payment processing.

Read our guides for startup founders, or learn more about doola and how we can help you set up your new business quickly and easily.

Turn your entrepreneurship dream into reality today!

We do our best to provide accurate and up to date information, however the information provided here are just guidelines. Please speak with a tax and compliance professional in your country