Welcome to the LLC Guide

Note on opening a bank account for your US LLC

When opening a business account for your US LLC – whether with Wise or another bank – it’s important to correctly specify the different address types and understand the bank’s requirements. The LLC business address provided at formation is generally not a commercial address, meaning it is not a physical address from which you actually operate. It merely serves as your LLC’s registered business address with the state.

If a bank or payment service provider (e.g. Wise) asks you for a “business address”, “trading address” or “personal address”, this always refers to your operational address – i.e. the address from which you run your business. This can be your apartment (home office), a co-working space or even a small office – the main thing is that you can prove this address with an official document. Valid proof includes a rental agreement, an electricity or internet bill or a bank statement with address details.

Make sure that you do not accidentally enter the LLC business address in the relevant fields, especially if this has been automatically inserted by the bank in advance. If you do not make a correction here, problems may arise later – for example, if you are traveling months later and no longer have access to current verification documents. If, on the other hand, you are explicitly asked for the “Company address”, “Registered address” or “Business address”, you should of course enter the official registered LLC business address from the USA that you received when the company was founded.

Also note that not every bank or platform accepts every LLC. Decisive factors are often your country of residence, the field of activity of your LLC and the documents you can provide for identity and company verification. Almost all banks also require the EIN (Employer Identification Number – the tax ID number of your LLC) as a prerequisite for opening an account.

Which bank is right for you therefore depends largely on your personal situation. Here you will find a selection of fintech banks where our clients have already successfully opened business accounts:

Fintech banks in the EU or worldwide:

Wise, Airwallex, Payoneer, Bankera, Wallter, Zyla, Arival, Satchelpay, Revolut, Paxumbank, Silverbird, 3s.money, Paynexpay, Strondy, Wittix, Ibanera, Paydo, Payswix, Connectpay, Pervesk, Currenxie, Zen

Fintech banks in the USA:

Mercury, Relay, Slash, Trynovel, Globalfy, Zilbank, Orientalbank, Brex

Tip: If you want to start with the account opening, it’s best not to wait too long after forming your LLC. Especially with US platforms like Mercury or Relay, it is easier to open an account shortly after receiving your EIN and formation documents, while your information is still fresh and easy to verify. In addition, banks like to change their policies to the disadvantage of customers!

Residence (important information for banks!)

Anyone who opened a business account, for example with Wise (or another EU fintech/neobank), using a residential address in Paraguay before 2024 was lucky and can keep their account. New registrations with residential addresses from Paraguay, Panama, Cyprus, Malta, and Dubai (UAE) are becoming increasingly difficult or almost impossible at fintech banks within the EU! However, if you register with another residential address (e.g. Switzerland, Germany, etc.), get your account approved, and then later move to Paraguay, for example, you still have the option to change the address via Wise support. However, this is only possible through Wise support, since countries like Paraguay, Panama, Cyprus, and Dubai (UAE) are grayed out and therefore can no longer be selected!

Activity of your LLC (Important information for banks!)

If you want to open a business account, the bank will carefully check what your LLC is engaged in. They do not rely solely on the information you provide in the application but often also review your website, social media channels, or other public information.

There are certain areas of activity that banks generally reject. These include, for example:

• Adult entertainment (e.g. OnlyFans, webcam, escort)

• Financial and investment advice

• Activities in the field of cryptocurrencies

• Offers with unrealistic promises of success (e.g. “Earn 12,000 euros in the first month”)

Therefore, make sure to pay close attention to the information you provide to the bank (especially the business activity description!) and also to how your website appears. Even wording that sounds too much like “get rich quick” can result in your account being rejected.

My tip: Describe your business model in a factual, clear way without making flashy or exaggerated claims. The more professional and trustworthy your online presence appears, the higher your chances that the bank will open your account “without any issues.”

Wise issue (LLC company name in proof of address of Trading address!)

The problem with Wise and the Trading address has unfortunately existed since December 2024 / January 2025. At that time, Wise asked all LLC owners to reverify the Trading address, but this time not only with the first and last name as well as the address of the member of the LLC, but Wise wanted (and still wants) proof of address with the company name included in the address. However, this is not possible, because a single member LLC is not a corporation that can simply open branch offices in other countries, but is considered a Disrerarded Entity, where the member of the LLC can sit and work from a home office.

Actually, Wise knows this as well and even offers business accounts specifically for an LLC. However, Wise’s automatic algorithm always insists that an address verification document with the LLC name in the address must be uploaded.

The good news is that Wise allows all LLC owners who have a Single Member LLC to submit private address verification documents (without the LLC name in the address). I am also sending you a screenshot. In the second red underlined line, you can see that Wise accepts this (but only for a Single Member LLC!).

The bad news is, unfortunately, you will have to clarify this with support, as you probably won’t get any further otherwise! However, you can make it clear to support that your LLC is a Single Member LLC. Attached is a text that you can send to Wise, and I hope this helps you (please adjust the email before sending it!).

E-Mail to Wise

Reference: Clarification on Address Verification – LLC Home Office

Dear Wise Support,

Thank you for your request.

Please note that xxxxxx LLC is a U.S. Limited Liability Company that operates as a single-member disregarded entity. The registered address of the LLC is in (New Mexiko / Wyoming / Florida), as per its official incorporation documents.

The business activities are conducted from a home office by the sole member of the LLC. This home office is not a branch or permanent establishment of the LLC, but rather a remote workplace used by the owner to manage the LLC’s operations. The address is therefore not registered under the LLC’s name, but under the name of the member.

This is a common structure for U.S. LLCs operated remotely, and there are no formal lease agreements or commercial utility bills under the LLC’s name, as the business is conducted digitally without a physical storefront or office. All I can offer is proof of the address of the LLC member (me) who works from home.

I hope this clarification helps. If you need further documents or explanations, please let me know.

Kind regards,

Your name

Managing Member, xxxxx LLC

Annual Report of your US LLC

If you have founded your LLC in Florida or Wyoming, you must submit an annual report once a year. This obligation does not apply in New Mexico, where no annual report is required. The filing is not automatic, but will be taken over by us as soon as you have ordered your LLC renewal with us. We will always remind you when the time comes.

Important: The Annual Report has nothing to do with a tax return and does not require any information on turnover, profits or other financial data. Instead, only the basic company data is updated, e.g. the business address, contact information or the composition of the members. It is therefore purely a matter of formally confirming your company data to the respective federal state.

The time of submission is regulated differently:

In Wyoming, the Annual Report is always due exactly 12 months after the formation of your LLC. In Florida, on the other hand, the Annual Report must be filed every year between January 1 and May 1 – regardless of the actual formation date. This means that even if you formed your LLC in Florida in October, for example, the Annual Report must be submitted the following January.

For you, this also means that the extension of your LLC:

– in New Mexico and Wyoming every 12 months from the date of incorporation,

– and in Florida always in January, regardless of the original founding month.

As soon as you have ordered and paid for the renewal with us, we will automatically send you an online form that you can use to check or adjust your LLC details. On this basis, we will submit the Annual Report for you on time – very easily and stress-free.

IRS Compliance Formalities for Single Member LLCs (Tax Documents 5472+1120)

If you own a US LLC with only one member (you) and this member is not resident in the USA, the IRS requires the filing of Forms 5472 and 1120 once a year. These so-called IRS compliance formalities apply to all single-member LLCs owned abroad – regardless of whether the LLC was active in the respective financial year, generated sales or has already been dissolved. This is expressly not a tax return. The forms are solely for the purpose of providing information to the US tax authorities and do not create any tax liability in the USA.

We send our clients a link to a short online form towards the end of January or beginning of February, which we use to request the information required for the submission. For example, you will be asked whether there were any disbursements to you in the previous year, whether your LLC was invested and the total amounts in USD. A revenue surplus statement or detailed bookkeeping is not required. It is only important that all amounts are stated in US dollars, as the IRS does not accept any other currencies. We will link you to the exchange rate recognized by the IRS in the form.

As soon as we have your details, we will take care of preparing the forms and submitting them on time. If your LLC was inactive in 2024 or has already been dissolved, we still need feedback – because submission is also mandatory in these cases.

IRS Compliance Formalities for Multi Membered LLCs (Tax Document 1065)

If you own a US LLC with several members, your LLC is considered a partnership for tax purposes. In this case, the IRS requires the submission of Form 1065 every year – even if the LLC did not generate any sales in the previous financial year or has already ceased its activities. The form is only used to provide information to the US tax authorities and does not automatically lead to a tax liability in the USA. However, it is used to identify potential US taxable partners.

In order for us to file Form 1065 on behalf of your LLC, we will collect some basic information via our IRS Compliance Interview. This includes the income of your LLC, existing partnership relationships, the tax residences of all members and your current address. Unlike with a single-member LLC, financial data is also requested here – for example, the USD balance in the LLC’s business accounts at the beginning and end of the respective financial year. This information can usually be determined simply by looking at the bank statements or transactions for the year.

It is important that you enter all amounts in US dollars only, as the IRS does not accept information in euros or other currencies. The official exchange rate that the IRS specifies for conversions will of course be linked in the form.

Particular attention should be paid to the period in which your LLC was managed as a multi-member LLC. If your LLC was converted from a single-member LLC to a multi-member LLC (or vice versa) during the year, the information relates solely to the period of the active multi-member structure. All prior or subsequent periods are subject to the separate return requirement on Form 5472.

We will inform you by e-mail as soon as the IRS Compliance Interview starts – usually towards the end of January. If you do not currently have a permanent address or tax residence, you must still provide a residence, for example your last known tax residence in Germany or another country. The form cannot be submitted without this information.

FBAR (Foreign Bank Account Report) for account balances of USD 10,000 or more

If your US LLC had foreign business accounts in the previous calendar year – i.e. accounts outside the USA – and the cumulative balance of these accounts exceeded USD 10,000 at any time, you are obliged to file a so-called FBAR (Foreign Bank Account Report). This applies, for example, to accounts with Wise with a Belgian IBAN, even if they were opened via your US LLC. The FBAR obligation applies regardless of the type of company and also applies to LLCs with only one shareholder.

It is important to note that the FBAR obligation only applies to foreign business accounts of the LLC – not to private accounts and also not to other company accounts that are not registered in the name of your US LLC. So, for example, if you generate income via the LLC but the money goes into the business account of another company or even your personal account, this is not covered by the FBAR reporting obligation. US accounts, such as Mercury, Relay or Wise USD (with a US routing number), are also not affected.

The fiscal year to which the report refers is always the calendar year (January 1 to December 31) – regardless of the date of formation or the renewal date of your LLC. If your LLC was only formed in the current year, you can ignore this information for the time being.

FBAR filing is done via the online portal of the US financial supervisory authority FinCEN. You must enter all amounts in US dollars. We will of course provide you with an official conversion table with the exchange rates recognized by the IRS if required.

The deadline for submitting the FBAR is generally April 15, but it is automatically extended to October 15 – so there is plenty of time to take care of it. We remind you twice a year (on April 1 and October 1) by e-mail!

Extended limited tax liability after moving away from Germany – and how you can avoid it

If you have left Germany and are living abroad permanently – for example in Thailand – you should be aware of the so-called extended limited tax liability. This special regulation applies if you have been subject to unlimited tax liability in Germany for at least five years in the ten years prior to your departure. It can result in Germany continuing to levy taxes on certain income even after your departure – for a period of up to ten years.

Whether you are affected by this depends on two asset limits. The first is reached if your assets in Germany exceed 154,000 euros. The second is relevant if your domestic assets account for more than 30% of your worldwide assets. Important: It is sufficient if one of these limits is exceeded – you do not have to meet both criteria for the regulation to apply.

But that alone is not enough. The law also requires that you continue to have “substantial economic interests” in Germany. What falls under this? For example, if you actively generate income in Germany, run a business, have a permanent establishment or the majority of your customers come exclusively from Germany. And this is precisely where there is room for maneuver: if you align your economic structure internationally and clearly relocate the actual center of your life abroad (with a permanent residence or permanent establishment, e.g. home office), you can avoid the extended limited tax liability in many cases.

An important point is the permanent establishment for tax purposes. If, for example, you use a US LLC and manage it exclusively from your foreign residence (not permanently traveling!) – for example from Thailand, with your own laptop, internet and telephone, without staff or a permanent establishment in Germany – then there is generally no permanent establishment in Germany. This means that Germany has no access to the income of this LLC. And crucially, German customers are also permitted! You may continue to serve customers in Germany with your US LLC as long as the operational and tax management does not take place in Germany.

At the same time, you should keep an eye on your assets. Make sure that your German assets – such as real estate, bank deposits or shares in German companies – either remain below 154,000 euros or make up less than 30% of your total assets. For example, if you have worldwide assets of 1 million euros, you should hold a maximum of around 300,000 euros in Germany to stay below the limit.

Another key aspect is your verifiable place of residence abroad. Rental contracts, electricity and internet bills, bank statements, a tax number in your new country of residence and a long-term visa are helpful documents to make it clear: You no longer live and work in Germany. Also avoid remaining registered in Germany or using bogus solutions such as letterbox addresses – this can be seen as an indication of continuing economic ties.

Conclusion

As long as you do not have a permanent establishment for tax purposes in Germany, manage your LLC from abroad for tax purposes, structure your German assets wisely and have clearly shifted your center of life abroad (residence), you can avoid the extended limited tax liability – even if you work with German clients.

A well thought-out structure at an early stage will protect you from unnecessary tax liability in Germany in the long term.

What is a compliance residence – and what is it for?

A so-called compliance residence is a purely formal residence that is primarily used for proof of address. It is often set up in countries where you do not reside permanently, but where you need an officially registered address – for example, to open bank accounts, use payment service providers or comply with certain registration requirements with platforms or authorities.

It is important to understand that a compliance residence does not replace the actual center of life and is not suitable for circumventing tax regulations such as the extended limited tax liability in Germany. For tax purposes, it is not the address on paper that counts, but where you actually reside, are economically active and spend your everyday life.

So if you are planning to deregister from Germany for tax purposes and avoid the extended limited tax liability, you need more than just a dummy address. It is crucial that you really move the center of your life abroad – ideally with proof of a rental contract, residence permit, bank details, tax residency in the new country of residence and professional activity from there.

A compliance residence can therefore be a practical solution for administrative purposes – but is by no means a substitute for genuine emigration or repositioning for tax purposes.

Real residence vs. compliance residence – what counts for the German authorities?

If you deregister from Germany and move your residence abroad, the question often arises: How do I prove to the German tax authorities that I actually live abroad – and not just pro forma? The difference between a real residence and a pure compliance residence can be decisive for tax purposes, especially when it comes to avoiding extended limited tax liability or assessing economic interests.

A real residence is where you have the center of your life – in other words, where you actually live, work, spend your free time, go to the bank, get medical treatment, go shopping, sign contracts, in other words, where you take part in everyday life as normal. What counts for the German authorities is substantial proof, not just an address on paper.

This will convince the German tax authorities that you are actually resident abroad: