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Old 17.01.2011, 21:13
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Second Job Abroad: Small Business/US LLC

First, thanks all in advance for the help. I have combed the site a few times and have accumulated a ton of useful data regarding business ventures in CH and doing business abroad. To that point I am looking for some help with a few questions. Below is the current game plan:
Base:
I am an US citizen living and working in CH (B permit/about to get C). I have the normal 8-8 job and I plan to keep this job, but have already started a small business for a hobby. This business is just a hobby, but I would like to ensure I have a proper business set-up and also a shelter from liability. This business is currently a venture between myself and a friend from Norway and we do not plan to sell in the US in the near term. Volume is small currently but looking to grow in 6 digits next year. Are plan is to set up an LLC in the US and operate with no physical location. We will drop ship all goods.

Questions:
1) Has anyone set up an US LLC while living in CH? I know formation is easy, but any insight on taxation (personal and company), legal ramifications, etc.
2) or...should I just set up a GMBH in CH when I get my C-permit (which I believe is an option)
3) Any other options? Partner in CH with another company?

Thanks again and I look forward to the conversation.
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Old 17.02.2011, 11:40
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Re: Second Job Abroad: Small Business/US LLC

bump for any insight help...thanks
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Old 18.02.2011, 16:22
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Re: Second Job Abroad: Small Business/US LLC

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First, thanks all in advance for the help. I have combed the site a few times and have accumulated a ton of useful data regarding business ventures in CH and doing business abroad. To that point I am looking for some help with a few questions. Below is the current game plan:
Base:
I am an US citizen living and working in CH (B permit/about to get C). I have the normal 8-8 job and I plan to keep this job, but have already started a small business for a hobby. This business is just a hobby, but I would like to ensure I have a proper business set-up and also a shelter from liability. This business is currently a venture between myself and a friend from Norway and we do not plan to sell in the US in the near term. Volume is small currently but looking to grow in 6 digits next year. Are plan is to set up an LLC in the US and operate with no physical location. We will drop ship all goods.

Questions:
1) Has anyone set up an US LLC while living in CH? I know formation is easy, but any insight on taxation (personal and company), legal ramifications, etc.
2) or...should I just set up a GMBH in CH when I get my C-permit (which I believe is an option)
3) Any other options? Partner in CH with another company?

Thanks again and I look forward to the conversation.
To answer this question properly you would need to say why you think an LLC in the US is the route forward. This exposes everything to the IRS and I am not sure that is such a good thing. Perhaps you should think about setting up an Ltd in the UK or in Gibraltar or in Cyprus - banking can be in Luxembourg or here makes no difference. I think from a tax perspective they would be the most interesting. From a financial investment side the GmbH in Switzerland is actually quite expensive. Firstly you have to have the 20K deposit and then there is an annual tax charge on the capital ie 20K of around CHF 500 and that is before worrying about bookkeeping and tax on profits etc.
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Old 18.02.2011, 18:01
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Re: Second Job Abroad: Small Business/US LLC

I would always recommend people set up a UK company and do things through there..not just because its what i do but because its genuinely the best structure.

pm me if you like
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Old 09.12.2011, 19:26
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Re: Second Job Abroad: Small Business/US LLC

Hi Geo 039,

I am a California lawyer living part-time in California and part-time in Basel. I can go over the pros and cons of setting up a US LLC with you if you like. I set up LLC's in various states.

Regarding the IRS, US citizens are taxed on their income worldwide. Since an LLC is a flow-through structure, meaning you report the income on your own tax return, it doesn't really matter if you form one or not - at least for tax purposes. You can deduct the expenses of your business regardless of whether you run it through an LLC or not. The LLC protects you from liability and also gives you privacy, depending on the state in which it is formed.
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