{"id":4254,"date":"2026-07-02T16:38:18","date_gmt":"2026-07-02T16:38:18","guid":{"rendered":"https:\/\/dartmouthinternational.com\/?p=4254"},"modified":"2026-07-02T16:43:40","modified_gmt":"2026-07-02T16:43:40","slug":"setting-up-a-us-llc-in-just-a-few-days-what-many-providers-dont-tell-you","status":"publish","type":"post","link":"https:\/\/dartmouthinternational.com\/en\/setting-up-a-us-llc-in-just-a-few-days-what-many-providers-dont-tell-you\/","title":{"rendered":"Setting Up a US LLC in Just a Few Days? What Many Providers Don&#8217;t Tell You"},"content":{"rendered":"<p><em>Forming an LLC is usually the simplest part of the process. However, tax, estate planning, and compliance considerations should be analyzed from day one.<\/em><\/p>\n<p>&nbsp;<\/p>\n<p class=\"PDq2pG_selectionAnchorContainer\" data-start=\"402\" data-end=\"593\">In recent months, I&#8217;ve seen an increasing number of posts and advertisements offering to incorporate LLCs in Delaware in just a few days, including an EIN and bank account, for very low fees.<\/p>\n<p data-start=\"595\" data-end=\"673\">The reality is that incorporation is usually the simplest part of the process.<\/p>\n<p data-start=\"675\" data-end=\"750\">However, what is often intentionally omitted from these types of posts are:<\/p>\n<ol data-start=\"752\" data-end=\"1026\">\n<li data-section-id=\"jrt2r\" data-start=\"752\" data-end=\"944\">The implications of US tax treatment and inheritance tax issues, which will be driven by the contemplated activities of the company and ultimately determine how it should be structured; and<\/li>\n<li data-section-id=\"1esx5iq\" data-start=\"946\" data-end=\"1026\">The compliance obligations that arise once the LLC or company is operational.<\/li>\n<\/ol>\n<h2 data-section-id=\"10uuaub\" data-start=\"1028\" data-end=\"1083\">Compliance Obligations That Should Not Be Overlooked<\/h2>\n<p data-start=\"1085\" data-end=\"1166\">A few examples of these compliance obligations and its possible consequences are:<\/p>\n<ul data-start=\"1168\" data-end=\"1720\">\n<li data-section-id=\"1dbxt0n\" data-start=\"1168\" data-end=\"1385\">An LLC with a foreign single member may be required to file Form 5472 annually, reporting certain reportable transactions. Failure to comply with this obligation can result in significant fines of up to $25,000 USD.<\/li>\n<li data-section-id=\"g6i5h5\" data-start=\"1387\" data-end=\"1565\">Depending on the structure, there may be additional reporting obligations, such as filing FBARs when certain requirements related to foreign bank or financial accounts are met.<\/li>\n<li data-section-id=\"9gvj4u\" data-start=\"1567\" data-end=\"1720\">It is also common to find LLCs without adequate corporate documentation or with insufficient accounting records to support their reporting obligations.<\/li>\n<\/ul>\n<h2 data-section-id=\"1bmp39j\" data-start=\"1722\" data-end=\"1779\">A Common Scenario: LLCs Used to Acquire US Real Estate<\/h2>\n<p data-start=\"1781\" data-end=\"1934\">Another scenario we frequently see involves LLCs or Corporations used to acquire real estate in the United States, whether for personal use or otherwise.<\/p>\n<p data-start=\"1936\" data-end=\"2103\">In this regard, many owners mistakenly assume that if the property doesn&#8217;t generate income or remains vacant for part of the year, there are no compliance obligations.<\/p>\n<p data-start=\"2105\" data-end=\"2207\">However, the absence of income does not imply the absence of tax, corporate, or reporting obligations.<\/p>\n<h2 data-section-id=\"1tdkvyq\" data-start=\"2209\" data-end=\"2266\">An LLC Should Never Be Considered a Universal Solution<\/h2>\n<p data-start=\"2268\" data-end=\"2458\">Beyond the specific tax, estate planning, or other considerations of each structure or family, every case must be analyzed considering very carefully its compliance obligations from day one.<\/p>\n<p data-start=\"2460\" data-end=\"2558\">From a tax and estate planning perspective, an LLC should never be viewed as a universal solution.<\/p>\n<p data-start=\"2560\" data-end=\"2796\">The appropriate structure should always depend on several factors, such as: who the owners are, their tax residence, the activities the entity will carry on, the type of assets held, the long-term objectives of the owners, among others.<\/p>\n<p data-start=\"2798\" data-end=\"2961\">These factors may affect not only the US tax treatment of the entity, but also generate potential US estate tax exposure and other cross-border tax considerations.<\/p>\n<h2 data-section-id=\"1ym5cur\" data-start=\"2963\" data-end=\"3011\">The Real Cost of Choosing the Wrong Offshore Company<\/h2>\n<p data-start=\"3013\" data-end=\"3202\">In summary, the structure chosen should always be designed around the intended business and objectives, rather than selecting an entity first and addressing the tax consequences afterwards.<\/p>\n<p data-start=\"3204\" data-end=\"3301\">The decision to save a few hundred dollars when forming a company may seem like a good one today.<\/p>\n<p data-start=\"3303\" data-end=\"3473\">However, the fees involved in correcting non-compliance, addressing regulatory requirements, or regularizing a poorly implemented structure are often considerably higher.<\/p>\n<p data-start=\"3475\" data-end=\"3565\">As we often say, forming an entity is not the end of the process; it&#8217;s just the beginning.<\/p>\n<h2 data-section-id=\"2fhqnb\" data-start=\"3567\" data-end=\"3601\">Before Incorporating a US LLC<\/h2>\n<p data-start=\"3603\" data-end=\"3766\">Before implementing a structure\u2014or if you already have one in place\u2014it is worth confirming that all applicable compliance obligations are being properly addressed.<\/p>\n<p data-start=\"3768\" data-end=\"3914\">If you have any questions, please feel free to contact us. We will be happy to discuss your situation with you, at no cost and with no obligation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Forming an LLC is usually the simplest part of the process. However, tax, estate planning, and compliance considerations should be analyzed from day one. &nbsp; In recent months, I&#8217;ve seen an increasing number of posts and advertisements offering to incorporate LLCs in Delaware in just a few days, including an EIN and bank account, for [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":4248,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":["post-4254","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-compliance-news-en"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Setting Up a US LLC in Just a Few Days? 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