2025 Edition
In today's ever-changing economic landscape, digital entrepreneurs and service professionals face constant challenges: from managing international operations and finding efficient tax structures to protecting their assets and ensuring the viability of their projects both long and short term. And this is where it's important to be realistic: with 90% of startups failing in %, the priority is to survive and consolidate from day one 💡.
Achieving sustainable growth and sound financial planning in a constantly evolving global context requires strategic vision and a real understanding of the options offered by the international market. Those who understand and apply these tools will have a decisive competitive advantage.
I'll quickly tell you the case of Carlos, web designer freelance.
Just a year ago, Carlos worked exclusively with clients in Spain and faced a business management challenge that consumed his time and energy.
Today, after forming a LLC in the USA Within a fully legal tax framework adapted to its activity, it has managed to better organize its business, expand its international presence, and manage its resources more efficiently, always complying with its tax obligations both in Spain and abroad.
*Each case is unique, and results may vary. The key lies in proper management and a strategic approach that ensures regulatory compliance and project sustainability.
That's why we created this The Ultimate Guide to LLCs in Spain: to help you structure and grow your business, optimize its management and lay the foundations for a solid financial future, always within a legal and secure fiscal framework.
Boost your Global Vision.
Anticipate challenges and build a solid business future with strategies adapted to a constantly evolving environment.
🕒 This guide is not for reading in a hurry..
It will take you between 1 and 2 hours to read it completely, but each block is designed so that you can read it separately and put it into practice instantly.
Move at your own pace and return to each section as needed.
[Last updated: August 9, 2025]
Let's start by clarifying that LLC means Limited Liability Company, either "Limited Liability Company" in Spanish. They are very popular and flexible legal business structures for many digital business either freelance professionals.
Why? Because they offer the best of both worlds: limited liability (of a corporation) and flexible management and taxation (similar to those of a self-employed person or partnership), but with fewer formalities. 🙌
In many cases, LLCs operate as “pass-through” entities or transparent. This means that the profits they generate at the end of the year are directly attributed to their owner and must be declared in their Income Tax or the personal tax that corresponds to your tax residence. They cannot accumulate indefinitely without paying taxes. Therefore, LLCs are designed to check in, spend and tax in an orderly manner. 💸
Another advantage is that LLCs don't require a board of directors or mandatory annual meetings, which greatly simplifies their management. This is especially attractive for small businesses or solopreneurs. 👍
The call “pass-through taxation” implies that the profits and losses of the LLC are carried forward to the personal tax return of the member(s), avoiding double taxation that does affect corporations. 🙌
Limited Liability Company
(Limited Liability Company) Only exists in the United States
The double taxation It occurs when a company pays taxes on its profits in the country where it is registered and, subsequently, its owners return to paying taxes in their country of tax residence for the profits. dividends they receive. This system can generate a high tax burden for many entrepreneurs. In certain circumstances, LLC can help avoid this problem, since, if they are taxed as “pass-through” entities, the profits are attributed directly to the owner and are taxed only once, on their personal tax return, always in accordance with the tax regulations of their country of residence.
Passthrough Entity
Profits flow to you automatically at the end of the tax year (The LLC will not “store” money)
When a LLC is pass-through It means that the company does not pay Corporate Tax for its benefits: the result it is attributed to you and you pay taxes on it in your personal income tax. For a tax resident in Spain, this happens via the Income Attribution Regime (RAR): The Treasury “sees” the LLC as transparent and makes you integrate net profit (income − deductible expenses) in the same year in which it is generated, although do not withdraw the money in the LLC account. They are not “dividends,” they are not “payroll”: it is attributable profit 💡.
In practice, the pass-through converts the LLC into a fiscal channelWhatever comes into the company, the Treasury considers yours that same year. Your role is to document every figure and maintain impeccable order.
A quick example:
Imagine that you LLC gets €50,000 net profit. Being an entity "pass-through", those €50,000 are added directly to your personal tax base in Spain. This means that you will have to declare the full amount on your Income Tax as foreign attributable income, applying the section that corresponds to you according to the current Treasury scale for that exercise.
Imagine that this year you LLC bill 60.000 € and has 15.000 € in deductible expenses. The result is €45,000 net profit that, being an entity pass-through, are directly attributed to you as the sole member.
This means that you must declare those 45.000 € in Spain, in your Income Tax, within the section "Income Attribution Regime«. The LLC, by itself, does not pay taxes in the US.; only submits its reporting obligations through the Form 5472 and a 1120 pro forma.
In practice, your LLC:
Important note: Even if you don't withdraw money from the LLC, the profits attributed to it each year must still be reported.
Checklist to comply without errors:
Keep all receipts for your deductible expenses. Prepare and present the Form 5472 (informational) in the US along with the 1120 pro forma. Declare your profits in the Spanish personal income tax (Model 100). Lean on a specialized manager to make sure everything is correct.To calculate the Personal income tax to pay if you have an LLC, you must apply the brackets that correspond to your income level. Keep in mind that these brackets vary slightly depending on the Autonomous Community where you live, so it's always a good idea to check the regulations specific to your region. 📋
Let's see an example using the Personal Income Tax brackets for 2025 in Catalonia. Suppose that you LLC bill 50.000 € and you have 10.000 € in deductible expenses. That leaves a net profit of 40.000 €, on which you will have to pay tax. Next, we'll use the table with the applicable tax brackets to calculate the corresponding tax:
| Stretch | State type | Autonomous type | Total type | Fee in section | Accumulated fee | Marginal applies |
|---|---|---|---|---|---|---|
| Average rate on income | — | — | — | |||
⚠️ Navarre and the Basque Country have their own special tax regime (they do not use this scale).
No personal/family minimums or other reductions. It's all piecemeal.
Another example: of the total IRPF to be paid on 40.000 € general base (without minimums or reductions), applying the 2025 IRPF sections in Catalonia:
Total IRPF: 2.490,00 € + 1.261,68 € + 856,18 € + 3.602,10 € + 2.363,63 € = 10.573,59 €.
Average type: 10.573,59 € / 40.000 € = 26,4 %.
Applicable marginal rate: 33,8 %.
Do you think taxes in Spain are being used fairly? Click here and draw your own conclusions.
When a LLC has a sole proprietor and has not made an election to be taxed as a corporation, the IRS may classify it as a Disregarded Entity. This means that for U.S. federal tax purposes, the LLC is “ignored” and everything is attributed directly to its owner.
For a tax resident owner in Spain, this implies:
Key point: that the IRS “ignores” it for tax purposes does not eliminate the legal protection of the LLC. Your personal assets remain separate from those of the company, as long as you maintain corporate formalities:
Common mistake: Think of “disregarded” as nonexistent. It may be fiscally invisible in the US, but legally, the LLC remains a legal entity with its own EIN and the ability to sign contracts, open accounts, hire staff in other countries, etc.
In practice, this classification gives you the best of both worlds: tax simplicity in the US if there is no business connection there, and a legal shield that protects your personal assets. 
.
Main characteristics of a Disregarded Single-Member LLC:
No permanent establishment
No offices/properties or salaried workers in the name of the LLC in Spain
Limitations to take into account:
Despite its advantages, this structure has certain restrictions:
It does not allow partners or shareholders, limiting possible avenues for financing or growth.
You must comply with tax obligations in both the US and Spain, which can add some administrative complexity.
Therefore, before choosing a Disregarded Single-Member LLC, it is important to carefully evaluate whether this structure fits your business and personal goals.
Limited Liability
Protection of your personal assets
This type of limited liability means that the owner of the LLC and his personal assets They are protected from any financial or legal issues that may arise. The obligations fall on the company itself, since the LLC is a legal person, similar to a Limited Company (SL) in Spain.
In practice, the risk is limited to the company assets and does not extend to the personal assets of its owners. This contrasts with the self-employed, where the entrepreneur and business are legally the same, and personal assets can be affected by debts or obligations of the business.
⚠ Important: if the owner offers personal guarantees for an LLC loan, it could be personally responsible of that debt. 😮
As you can see, the limited liability It is one of the great advantages of the LLC, but it is not absoluteThere are circumstances in which you could lose the protection of your personal assets and be liable for damages from your own assets.
Therefore, it is essential to manage the LLC prudently and always comply with current regulations. Avoid any illegal, fraudulent, or negligent activity that could compromise your legal security and that of your assets.
One of the most widespread myths is to think that if at the end of the year you leave the LLC bank account at zero, you avoid paying taxes or raising suspicions. This is not the case. Taxation is not based on how much money is left on December 31, but on everything that has happened during the year: invoicing, expenses and how it is documented.
❌ Nothing could be further from the truth.
Both the Treasury and the IRS are analyzing the flow: income, expenses, transaction consistency, and traceability. If you artificially "empty" the account but can't justify where the money went, the problem won't be the balance... but the lack of supporting documentation.
What you should do to be safe:
💡 Having a balance in your LLC account is not a problem If you can justify each transaction. The real risk arises when there are transactions without supporting documentation or invoices that don't match the declared activity.
bnet profit = Yoincome – Gastos deductibles*
*Deductible expenses: “Any expense related to your economic activity”
The rule is simple: You can only deduct expenses that are directly related to the activity of your LLC.
Yes you can deduct:
You can't deduce:
)💡 AdviceIf you're unsure whether an expense is deductible, ask yourself, "Is this expense essential for the LLC to operate and generate income?" If the answer is no or ambiguous, it's best not to deduct it.
Why might it be worth leaving net profit at 0?
Practical example:
Imagine that your LLC has invoiced 30.000 $ in 2025. During that same year, you have had the following expenses:
Total expenses: 30.000 $
Net profit: 0 $
Result: You don't pay any income tax, since no taxable income has been generated. But be careful: you should keep invoices, receipts, and contracts in case the Treasury asks you to justify these expenses.
Therefore, you don't need to leave the account at zero: you need that everything that has happened to her is well justifiedIf the numbers add up and the documentation supports each transaction, the Treasury has no way in. 
.
This is the most sophisticated and dangerous myth surrounding LLCs for tax residents in Spain. It's based on a very attractive theory that goes like this:
“If your LLC is a Foreign-Owned Disregarded Entity, U.S. law doesn't attribute profits to you; it only requires you to report transactions such as distributions. Since this attribution isn't enforced at source, you only pay tax in Spain on the money you actually withdraw from the company.”
It is the famous thesis of the “Well, technically…”. Its foundation is a literalist and technical interpretation of the rule, focusing on IRS forms rather than the substance of the matter.
The Reality: Clash with the Treasury Steamroller 
Although the technical defense is intelligent, it clashes with the principle that the Tax Agency systematically applies: economic reality.
Inspector's conclusion: The profit is yours from the moment it is generated and, therefore, you must include it in your personal income tax through the Income Attribution Regime (RAR). For the Treasury, that your LLC is disregarded It is the ultimate proof of its total transparency, not a shield of opacity.
The Verdict: Operational Risk vs. Theoretical Reason 
Is it a lie that “you only pay taxes on what you distribute”? Not quite. It is a high-risk bet with a defensible technical rationaleThe argument isn't about who's right in a theoretical debate, but about the operational risk you're willing to take in practice.
Conservative Way — “The Fortress”
.
Aggressive Way — “Guerrilla Warfare”
.For him 99% of entrepreneurs, the aggressive path is a battle that is not worth it due to its enormous cost in time, money and stress. Don't confuse a technical legal defense with a sound tax strategy.The sensible thing to do is to tax based on income attribution. Peace of mind is priceless. 
If you are an entrepreneur in Spain (or live outside Europe) and you work in the digital world with clients spread all over the planet, there is a legal structure that can become your best ally: the LLC. 
The LLC is a limited liability company created in the United States that allows you Optimize your management, pay less taxes legally, and protect your personal assets.All in a flexible format designed for global businesses like yours.
Now, not everyone is a good fit for an LLC. But if you fit any of these profiles, you're probably losing money and peace of mind by not having one:
If you recognize yourself on this list, an LLC isn't just an option... it's the missing piece to scale your business without borders.
Basically this
If this is your routine, the LLC is your best friend.
There are certain profiles of digital entrepreneurs that can make the most of a LLC in the USABut beware: It is not a universal solution and it is not always the best option for everyone.
Before taking the plunge, it's key to analyze your specific case: your business, the type of clients you have, where they're located, and what your medium- and long-term goals are. You should also be well-versed in your tax, legal and administrative obligations both in the United States and in Spain.
Therefore, my recommendation is clear: get advice before decidingWe can help you assess the advantages and disadvantages of your situation, and help you create and maintain your LLC in a way that is 100% legal, secure, and tailored to your business.
💡 A good structure can be the difference between a business that grows unchecked and one that drowns in unnecessary taxes and paperwork.
An LLC is not for everyone
If you are on this list... we are so sorry :(
Although LLCs offer a structure flexible and very attractive for the digital entrepreneur, its real convenience depends on both the nature of your activity as of you tax residenceTo operate with complete legal certainty, it's key to understand which business models are truly compatible with an LLC under the legal framework of the U.S. and your country of residence.
In the case of Spain and the United States, Only certain types of activities take full advantage of this vehicle's potential.The golden rule is twofold: avoid generating permanent establishment in Spain and not fall into the category of ETBUS (Engaged in Trade or Business in the US) on US territory.
| Type of business / activity | Compatible with an LLC? | Main reason |
|---|
What alternative do you have?
If you find yourself in any of these cases, an LLC on its own It is not the definitive solutionHowever, you can opt for combined strategies:
This way, you separate risks, optimize taxation, and comply with regulations in both countries.
The term ETBUS (ANDngaged in Trade or business in the ORnited Yestates) is the criteria the IRS uses to decide whether your activity is sufficiently connected to the U.S. that you have to pay federal taxes there. It doesn't just depend on where you are physically, but on whether your business has presence or means in US territory.
Even if your LLC is a disregarded entity (taxes in your name, not in the company's name), can be considered ETBUS if it meets certain criteria, which would generate federal tax obligations.
When is an LLC considered an ETBUS?
It is analyzed on a case-by-case basis, but the most common scenarios are:
Not typically applicable to 100 % digital structures without media in the US. If you sell services from outside to clients in the US, there are nuances: it is not always “effectively connected”, but If the activity is regular, directed to the US and you have many clients there, the IRS could consider you an ETBUS. With occasional sales or small revenue in the US, it's unlikely you'll be classified as an ETBUS; if you're planning to scale up there, consult with a tax professional first. Tip: If you're in the right column, stay that way by avoiding physical presence and specifically US-based sources of income.
ETBUS = have business activity actually carried out in the USA. (quick definition) It typically involves physical presence or dependent agents who generate income connected to the U.S. If you are NOT an ETBUS, you are usually left with mere informational forms.
What if I'm ETBUS?
So, does ETBUS affect me? If you sell digital services from outside the US, you are most likely NOT ETBUS. As long as you have no physical presence or income from specific US sources, you will not have tax obligations there beyond information forms (such as the 5472).
Note: ETBUS isn't the only criterion that can affect your US taxation. Factors such as the type of entity, the tax treaty between your country and the US, and applicable deductions or credits also count. Before taking the plunge, speak with a tax advisor familiar with the US market. 
Create an LLC (Limited Liability Company) can be a good option for entrepreneurs and digital companies looking to optimize their structure for global expansion and efficiency. Below, we explore the key reasons to consider this legal form: 
To simplify the declaration and payment of all the collected VAT, the one-stop shop system is used (Non-Union OSS). 
In any case, it is your responsibility to inform yourself and declare your income and pay the corresponding taxes in your country of residence. LLCs are based on common law and may have tax and legal implications that vary by jurisdiction. Before forming an LLC, be fully informed about all the implications and consult with a qualified international tax expert.
We arrived at the black beast to operate in Europe with an LLC: the VATWith 27 countries, each with their own rules, this can feel like a real bureaucratic labyrinth.
The goal of this section is to give you a clear and straightforward map. 
Before we dive into the comparison table, it is crucial that you know a "shortcut" that can change the rules of the game: the
Merchant of Record (MoR).
Imagine that instead of your LLC selling directly to the end customer, you sell to a intelligent intermediary (as Hotmart, Paddle either Lemon Squeezy), and it is this intermediary who becomes the legal seller.
In practice, this means that The whole "brown" VAT issue becomes your problem, not yours. With a MoR, the platform takes care of everything:
Calculate and charge the correct VAT depending on the country of each buyer. Submit tax returns and pay VAT to the 27 EU tax authorities. He transfers the net money to you, discounting its commission (normally a 5-10%).This solution is perfect for those who sell B2C digital products in Europe and wants maximum simplicity.
In the following table, you'll see this turnkey strategy versus direct management head-to-head, so you can choose the path that best suits your business. 
| If your LLC sells… | Concrete example | Still… | What about VAT? | How do I manage it? / Complexity |
|---|---|---|---|---|
| 💿 Product 100% digital and automated | Pre-recorded course, ebook, template, SaaS | 👤 B2C | ⚠️ It carries VAT in the client country From the first euro (OSS) |
Register LLC in OSS, use gateway (Stripe Tax) and declare quarterly. Complexity: Medium |
| 🎬 Digital product via MoR | Infoproducts sold by Lemon Squeezy, Paddle, Hotmart | 👤 B2C | ✅ VAT managed by MoR | You receive net. You don't need OSS. Complexity: Low |
| 🧑💻 100% personal service | 1-on-1 consulting, coaching, design | 👤 B2C | ✅ No European VAT* "Not subject" sale |
Invoice without VAT. Do not declare to OSS. Complexity: Low |
| 🏢 Any product/service to a company | SaaS license, consulting, training | 🏢 B2B | ✅ VAT free Reverse Charge |
Validate VAT Number before charging. Indicate "Reverse Charge". Complexity: Low |
| 🎤 Hybrid video + live Q&A (Law 2025) | Course with recordings + live sessions | 👤 B2C | ⚠️ Now it does have VAT New law 2025 |
Collect VAT and manage it with OSS or MoR. Complexity: Medium-High |
Exception to the new VAT law 2025 (Directive 2022/542):
The exception is not in the format, but in the nature and fundamental value of service.
The key is whether you can make a strong case that what you are selling It is NOT a course with support, but a mentoring or personal consulting service which includes support material.
Think of two models:
Standard Hybrid Model (VAT included): The Exception: Asynchronous Personalized Mentoring Service (arguable as NOT subject to European VAT) Why might this fit into the exception?
For this service to be considered “not subject to European VAT” Under the general rule, the following conditions must be met simultaneously:
This is not a strategy that works for all cases. If you want it to be defensible upon inspection, you must comply these three points to the letter:
❗ Final note:
If you regularly provide the service from Spain or any EU country, the tax authorities may consider that the place of provision is within the Community territory and, consequently, require VAT. The simple fact of invoicing from an LLC in the United States is not enough on its own: what really matters is who provides the service and from where.
💡 The first option carries VAT. The second No (considered a personalized professional service subject to the general rule of localization outside the EU).
A Anonymous LLC It is a company registered in states such as New Mexico, Delaware or Wyoming, where the owner's name does not appear in public records. This added privacy can be very useful in sectors such as cryptocurrencies, cybersecurity either trademark protection, where strategic anonymity is an added asset.
But beware: Registration anonymity does not exempt you from your tax obligations. As a resident of Spain. This is where many people get confused... 😬
Which YEAH makes anonymity:
Which NO makes anonymity (and here comes the important part):
❌ It does not eliminate your obligation to report LLC income. in personal income tax if you are a Spanish tax resident.
❌ It does not allow you to deduct personal expenses as if they were business (Mercadona, rentals, vacations… you know 😉).
❌ It does not protect you from the Treasury If you make unjustified transactions between the LLC account and your personal accounts in Spain.
So, is it good for anything?
Yeah, It serves to protect your privacy, not to hide income. A well-used anonymous LLC:
Of course, as long as correctly declare your income and comply with your tax obligations as a Spanish taxpayer.
🪪 Anonymous LLC: Benefits vs. Risks
| ✅ Benefits | ⚠️ Risks / Limits |
|---|---|
| Public privacy
Your name does not appear in the state registry.
|
It is not total opacity
Banks/KYC and authorities can identify the account holder if applicable.
|
| Strategic protection
Less exposure to competitors and onlookers.
|
Compliance intact
You must declare income and comply with regulations in Spain (IRPF, RAR, etc.).
|
| Brand/positioning
Reinforces a professional image where privacy matters.
|
Documentary support
Unjustified transactions between personal/LLC accounts are a clear risk.
|
| Flexible operation
Privacy-friendly states and registered agent as a contact shield.
|
Banking/fintech
Increased KYC/AML scrutiny and real-world activity testing for account opening.
|
| Communicative simplicity
Separate person/company on websites, proposals and contracts.
|
False security
Anonymity doesn't save you if you default or deduct personal expenses.
|
ℹ️ Eye: “Anonymous” ≠ “invisible.” It’s about public privacy and internal order, not about hiding income or circumventing KYC.
💡 Tip: use privacy as strategic tool, not as a costume. Prioritize the documentary order and the compliance; this way you'll have privacy without surprises from the Treasury.
⚠ Although there is currently no requirement to report to FinCEN if you are a nonresident and your LLC doesn't have an ECI/ETBUS, laws change. Stay up to date to avoid surprises.
Anonymity can be a commercial shield, but it is not a tax shield. Complying with the Treasury is not optional, but how you structure your business is. The key is to optimize without crossing the line. 😊
⚠️ It is critical to understand the responsibilities of operating an LLC. Lack of awareness or failure to comply with regulations can lead to significant risks. Our goal is to help you understand why you should always act within the legal framework to prevent unnecessary consequences.
Key responsibilities to keep in mind:
- Tax compliance in both countries: US reports (e.g., 5472 + 1120 pro forma if applicable) and Spanish declaration (IRPF via RAR, where applicable).
- Real patrimonial separation: separate bank accounts, contracts in the name of the LLC and internal records organized.
- Documentary support: invoices, contracts, bank reconciliations and evidence that proves each transaction.
- Prevention of permanent establishment: Avoid offices, employees or dependent agents in Spain if your model does not include them.
- VAT/international sales: Check VAT/OSS rules in the EU or use a Merchant of Record when convenient.
💡 Conclusion: The LLC is a powerful tool if managed rigorously. With good planning and compliance, you will have protection, order and tranquillity.
⚠️ Most common mistakes and risks
✅ Keys to a smooth completion
💡 Remember: Meeting your tax obligations is not optional; it is the basis for maintaining your legal security and the sustainability of your global business.
Starting a business in the US is much more simple and digitized than in many other countries, where procedures are usually in-person and more complex. 🙌
So cheer up! These requirements are already included in our service. If you meet them, the process will be fast and 100% online:
USA It is a very destination attractive for entrepreneurs who want establish an LLC (Limited Liability Company).
The process is economical, fast and simple, and offers a series of both fiscal and operational benefits. 
The LLC was born in the USA to provide a legal solution to the self-employed with moderate income.
Over time, it has evolved to become a popular choice even for companies that handle million dollar transactions.
In addition, it allows the non-resident foreigners can create and manage a business in the U.S. without having to travel to the country. 
Important: The U.S. isn't the only option. Depending on your goals, other countries also offer opportunities for starting a business from abroad.
Ireland:
Corporate tax of the 12,5%, one of the lowest in the EU.
Privileged access to the European market (500+ million consumers). Dynamic economy with sectors such as technology, pharmaceuticals and finance.
Legal form: LTD (Limited Company), equivalent to the LLC, but requires at least one director resident in the EU.
Estonia: The most digitalized country in the world, with 100% online administration.
Possibility of obtaining the e-residency to create and manage your business from anywhere. Legal form: OÜ (Osaühing), equivalent to the LLC, with the tax advantage of deferring taxes until profits are distributed.Other countries such as Singapore, Hong Kong and Cyprus also offer interesting alternatives.
Before deciding, compare the pros and cons and consult with an international tax expert to choose the best option for your business.
Have a company in the United States It involves complying with two tax authorities: 🇪🇸 Spain and 🇺🇸 USA.
Institute Revenue Service
There you only inform, information is power.
The IRS (Internal Revenue Service) It is the United States tax agency, and applies different rules to LLCs depending on their number of members and the tax option chosen.
Domestic LLC with two or more members:
Members declare and pay taxes on their share of profits. You can choose to be treated as corporation, in which case the LLC pays taxes and then the members pay dividends.
For this option the following is presented: Form 8832.
Unipersonal LLC (Single Member Disregarded Entity): The owner declares and pays taxes as if he were self-employed, but in his country of tax residence. We manage the creation of your Sole Proprietorship LLC, that will not pay taxes in the US. provided that:
Important:Spain and the United States They have an agreement so that citizens and companies that generate income in both countries do not pay taxes twice for the same reason.
Aim: Establish clear rules on where and how much to pay taxes, promoting trade and investment between both countries.
Imagine if you're from one country and earn money in another. This agreement means you may not have to pay taxes in the country where you earned that money.
If you're Spanish and earn money in the U.S., you may not have to share your profits with the U.S. government.
If you have already paid taxes in the US, you can deduct what you paid there is compared to what you have to pay in Spain for that same income. Main benefit: Avoid paying taxes twice on the same income in two different countries.
If you want more details, you can consult the Double taxation agreement signed by Spain and the United States. (in force since 22 February 1990).
This agreement also includes other advantages, such as the elimination of double taxation on dividends, interest, and royalties, and the reduction of withholding taxes. Before doing business between Spain and the United States, be fully informed about the conditions and benefits. A tax advisor specializing in the US market can save you trouble and money.
Important: Complying with the rules of this agreement requires making correct declarations in both countries and keeping all documentation.Entities in the income attribution regime (RAR) These are entities that do not pay taxes as an entity, but rather their income is distributed among their members, who declare it on their own tax returns.
Also applies to some foreign entities, such as American Single Member Disregarded LLCs, which operate in Spain and pay taxes in an equivalent manner. 🌐
📌 Query:
A Spanish tax resident is the sole owner (100%) of a American LLC "disregarded" (that is to say, fiscally transparent in the US), which offers online services and does not have EP in Spain.
Ask if you should report the profits of the LLC on the model 100 (IRPF), in the section E. Income attribution regime, although the model program only allows up to 99% to be included, and he has 100%.
✅ Administration Response:
📌 Query:
When are you going to declare these returns:
🛑 Result: If you enter 99%, the model will only declare 99% of the actual profit, and you will be leaving money untaxed (even if it is unintentional).
✅ The solution (accepted by the Treasury)
The Treasury has acknowledged in an official response that this limit of 99% is a technical error in the program, but that's it does not exempt you from declaring the 100% of the attributed income.
Therefore, the solution is:
💡 Adjust the total performance so that the 99% equals the actual 100%.
🧮 Practical formula
If the actual profit of your LLC is, for example, 100.000 €, you must:
The model will calculate:
99% of €101,010.10 = exactly €100,000 → ✅ Correct
🚫 What NOT to do
[Remember that you are responsible for ensuring that all the information you provide is accurate and truthful. This means that if there are any errors or inaccuracies in your statement, you will be solely responsible.
It is highly recommended that you consult with a tax manager or professional before submitting your return to the tax authorities. This is important to ensure that you are complying with all tax rules and regulations, and to avoid potential fines or penalties.]
Alternatively, if you do not want to do it yourself or your return is more complex because you have other income and special considerations, we strongly recommend using professional services such as TaxDown (plan FULL) to ensure that your tax return is handled correctly and efficiently.
Additionally, it is important that you have the following documents prepared or on hand in case they are later required by the Treasury:
Having these documents will facilitate the filing process and ensure that you are prepared for any requests for additional information from the tax authorities.
📩 Text to send to TaxDown:
Hello,
I have an LLC in the US as single-member disregarded entityI am a tax resident in Spain and I have already received confirmation from the DGT (General Directorate of Taxes) that I can apply the income attribution regime for personal income tax.
I want you to help me with my tax return, including what needs to be reflected from the LLC (income, expenses, etc.), as if it were my economic activity under direct estimation.
I need to know:
• What exact documentation or information do you need to include the LLC's data in your personal income tax return?
• How do I pass the data to you (PDF, Excel, Access, etc.)
Thanks in advance.
When operating your business internationally, it is essential to plan how to manage your social protection and you financial futureAn LLC gives you business flexibility, but that flexibility requires a personal strategy for your long-term well-being. 🌍
Key considerations for your financial future:
A LLC (Limited Liability Company) It is an entity governed by the legislation of the US state where it is created (Delaware, New Mexico, Wyoming, etc.).
This means that it is subject to US regulations, even if you operate 100 % online and live in Spain or Europe. 
Now then, What makes the tax difference is not where the LLC was created, but how and from where it actually operates..
The key point: do you have Permanent Establishment in Spain?
The concept of Permanent Establishment (PE) determine if the IRS can treat your LLC as a Spanish company for tax purposes (and therefore require VAT, IS, etc.).
According to the Article 5 of the OECD Model Convention and the Article 6 of the Non-Resident Tax Law, a foreign entity has a PE in Spain if:
If you DO NOT have an EP, the LLC does not pay taxes in Spain as a company.
This is true if:
So there is no EP, and therefore the LLC does not pay taxes as an entity in Spain.
Instead, the benefits are attributed to the owner, who pays personal income tax as a natural person under the Income Attribution Regime.
Then:
You only pay personal income tax as an individual for the profits of the LLC (distributed or not).
No Corporate Tax.
No obligation to apply VAT on behalf of the LLC.
Without the company being considered a tax resident in Spain.
And yes: this structure can offer greater operational efficiency and legal security if it is well set up and managed.
Did you know there are over 2 million LLCs registered in the U.S.? They're very popular among American entrepreneurs for their flexibility and protection.
Establishing an international presence with your LLC requires a good understanding of the implications of your tax residence and how each country's regulations affect your business structure. The tax treatment of your LLC and your income can vary greatly depending on your current and future country of residence.
But Each country has its own way of looking at an American LLC, and what in Spain is considered a transparent entity (pass-through), In others it may be irrelevant or even treated as an opaque entity subject to CFC rules..
🧠 The CFC Rules (Ccontrolled Foreign CCorporate Rules) are rules that some countries apply to prevent their residents from parking profits in foreign companies with lower taxes.
(Basically, they're trying to prevent you from setting up a company abroad just to defer or avoid taxes, when in reality you control it and it has no real structure.)
Jurisdiction Analysis for Global Entrepreneurs:
The choice of your tax residence directly impacts the management of your LLC and your tax obligations. Each country has its own regulatory and tax frameworks that you should evaluate based on your needs. personal and business goals and the fit with your international structure.
It is crucial to perform an individualized analysis to:
Classify your LLC in the new country (transparent, opaque, hybrid) and understand their effects.
Evaluate CFC standards and how could they impute you undistributed profits.
Determine taxation of the LLC's income (distributed or not) under local regulations.What to look for in each country (quick checklist):
Treatment of CLL: Pass-through, company subject to IS, hybrid entity? Permanent establishment / significant presence: offices, employees, dependent agents, or effective management.
CFC Standards: participation/control thresholds, low taxation test, substance tests. CDI and withholdings: existence of a treaty, types of withholding tax (royalties, interest, services) and credit mechanism at destination.
Personal tax residence: days of stay, center of vital interests, habitual residence, effects of a change of residence.
Reporting and compliance: information templates, CRS/FATCA, banking requirements (KYC/AML) and supporting documentation. VAT: B2B/B2C rules, OSS (or MoR if applicable), and local sales links.
Social security: mandatory contributions, bilateral agreements and coverage (health, pension). Effective taxation: marginal rates, exemptions/deductions, imputation of income and treatment of dividends/capital gains. Key idea: Your LLC's “passport” is US, but Who is in charge is your tax residenceFirst, define where you reside (and will reside), and align the LLC's operations with that framework to avoid surprises and optimize with legal certainty.
Final Conclusion:
For one strategic and legally compliant international tax planning, a detailed analysis of your personal and business situation in relation to the laws of your country of residence and the jurisdiction of your LLC is essential.
Make sure you understand How your country of residence views your structure and how to meet all your obligations. Good planning involves choosing the setting where your business shines. 
always within the legal framework.
Even if your LLC is registered in US and does not have permanent establishment in SpainIt is important to fully understand the scope of the concept of effective direction This criterion is only relevant when the entity is taxpayer in itself (for example, a C-Corp or an LLC that is taxed as a corporation).
However, if your LLC is a disregarded entity and in Spain it is considered under the income attribution regime (RAR)It does not have its own tax personality and cannot be considered a tax resident in Spain.
In that case, the effective management has no legal effect on the entity, and taxation falls directly on the partner through the Personal Income Tax.
What does the law say if the LLC is not pass-through? According to the Article 8.1.c) of Law 27/2014:
"An entity is considered to have tax residence in Spain when has its effective management headquarters in Spanish territory. It will be understood that there is an effective address when the address is located in Spain. direction and control of all its activities."
In practical terms, the effective direction This only has an impact if the entity is a separate taxpayer. That is, if your LLC:
It was not incorporated under Spanish law. It has no registered office in Spain. But You manage everything from Spain. and also The LLC is taxed as a corporation (C-Corp), Tax authorities I might consider who has tax residence in Spain (art. 8.1.c LIS).
How to strengthen effective leadership outside of Spain (role of manager)
Although it is not mandatory, delegate operational management in a professional manager In the United States, it provides evidence and substance. A manager is a U.S. entity or professional who:
Assumes the administrative management and legal compliance from the LLC from the USA Performs operational tasks and processes the necessary documentation with the IRS, FinCEN, BEA, etc.
Coordinates with the registered agent and maintains corporate records and reports.
It provides documentary evidence that the management is effectively carried out from the U.S.
Strengthening the structure for compliance
Having a professional manager does not change the tax treatment of an LLC disregarded, but if strengthens international coherence and demonstrates that the entity has a presence in its country of incorporation. Documentary evidence shows that management takes place outside of Spain, which helps to avoid misinterpretations or misrepresentations.
This approach adds a layer of legal security and fiscal consistency to your structure, although it is always advisable to adapt the strategy to current regulations.
Tip: Always consult with a certified tax professional to review your specific case and the tax situation of your LLC.
As managers of your LLC, we assume the administrative and operational management of your company directly from the USA, guaranteeing its legal and tax compliance in that jurisdiction. Our goal is to offer you tranquillity and efficiency, so you can focus on what really matters: the strategic growth of your business 🚀.
📝 This entire relationship is formalized through a service provision contract between your LLC and our entity, a US person with operational headquarters in the USA This contract does not “transfer” the tax residence of the LLC —which in a disregarded entity It doesn't exist in Spain—, but It does document that executive management is carried out from the U.S.
This document is a Tangible proof of substance and international coherence that you can provide in case of inspection or requirement, supporting the correct operation of your structure.
🛠️ Creation and comprehensive maintenance of the LLC
We take care of setting up your LLC, processing your EIN, and ensuring it complies with all legal and corporate obligations required in the U.S.
📋 Operational Management and Compliance in the U.S.
We oversee the legal and tax status of the entity, maintaining up-to-date records and processing the necessary forms. We file annual returns with the IRS (Forms 5472 and 1120), FinCEN, and BEA (BE-13, if applicable), and manage the renewal of the registered agent, as well as any other federal or state requirements.
🤝 Support and Coordination
We offer ongoing support to resolve questions, coordinate procedures, and assist you with any requirements or processes that arise.
💬 Communication and ongoing support
We are available to answer questions, coordinate procedures, and assist you with inspections or official requests.
🎯 Commitment to Management and Compliance
We are committed to managing your LLC in a legal, efficient and transparent, acting on your behalf to ensure that your business operates with solidity and compliant with US regulations.
Important: This service is not a fiscal panacea, but it is an essential element for provide real substance to your LLC in the U.S. and Strengthen your documentary and legal defense in case of review by the Treasury or any other authority.
He Agreement An LLC (LLC) is the fundamental internal document that governs the operation and management of your LLC. Although it's not mandatory in many U.S. states, drafting it correctly is key to establishing a solid structure, defining roles, and ensuring the legal security of your global business.
What is OA for?
Operating rules: how decisions are made, profits are distributed, and the company is managed. Role of the owner and manager: in a single-member LLC (single-member), the owner can manage it directly or delegate to a third party. Effective address in the USA: key to preventing the Treasury from considering the LLC a tax resident in Spain. Limited liability protection: The company's debts and obligations do not affect personal assets.
Your LLC's OA if you use a US manager.
If you like ensure that effective management is exercised in the U.S. and strengthen the legal structure, the OA can formalize the delegation of management functions to a professional manager In U.S.A.
A well-structured OA with a manager should include:
Delegation of administrative and operational management: The manager is responsible for administrative, operational, and legal compliance functions in the U.S., ensuring that the LLC complies with its bylaws and local regulations. Clarity in roles: The OA defines the manager's responsibility for day-to-day management and compliance, while the owner maintains a strategic oversight role. Tax compliance: The manager handles tax and regulatory obligations to the IRS and other entities, including filing official forms.
Importance for legal security and taxation
A well-drafted OA and a professional US manager are key evidence that your LLC has substance and effective direction in your jurisdiction of incorporation. This strengthens the legal security of your structure and demonstrates compliance with international regulations.
In short, the OA is the legal backbone of your LLC. Well-designed, it allows you to operate with transparency, consistency, and efficiency, ready to respond to any information request.
If one day you receive a notice from the IRS advising of an inspection or investigation into your LLC in the U.S., take a deep breath. 
and follow these practical steps to deal with it safely:
Keep calm and organize your documentation
Be clear about the areas that will be examined with a magnifying glass 
Collaborate… but with precision
Rely on specialists
Remember: A well-managed structure and proactive compliance are your best defense against any inspection. Transparency and solid documentation are the foundation of your legal security and the sustainability of your global business.
Cheer up, if you have everything in order, you've won!
Did you know that the first LLC (Limited Liability Company) was created in Wyoming in 1977? It was an innovative idea that soon spread throughout USA, as it offered multiple benefits for entrepreneurs.
By the 1990s, nearly all states had adopted this legal form, which combined the best aspects of partnerships and corporations. Thus emerged a solid legal framework that allowed entrepreneurs to choose a flexible and protective business form.
Today, LLCs remain very popular, especially in digital commerce and global entrepreneurship. Their success is due to the fact that they offer a perfect balance between the protection of a corporation and the simplicity of a partnership. Their advantages include:
Efficient organizational structure Simplified regulatory requirements Elimination of double taxation typical of traditional corporationsWith these characteristics, LLCs have become a preferred option for businesses seeking to expand internationally and for digital startups that value speed and reduced bureaucracy. 
And which states are the most advantageous for creating them? 
Delaware, Wyoming, and New Mexico are among the favorites for their favorable laws, low taxes, and high confidentiality. If you want to create an LLC in the U.S., our top recommendation is New Mexico.
If you want to create a LLC (Limited Liability Company) in USAIt's crucial to choose the state where you register wisely. Not all offer the same conditions or benefits, and some stand out especially for their tax, legal, and administrative advantages.
Among the most favorable for LLCs, the following stand out: New Mexico, Wyoming and DelawareEach one has characteristics that can be very attractive to Spanish entrepreneurs, depending on their goals and needs.
Our recommendation: If you are not a citizen or resident of the U.S., New Mexico It is the best option due to its low cost, zero annual bureaucracy, and total privacy in registration.
If you want us to help you create your LLC and optimize it for your global business, contact us hereWe take care of everything so you can get off to a good start.
When operating your LLC In the US, it is key to understand how the Sales Tax (sales tax) to digital services, as it depends on the state where it's registered. Regulations aren't the same across the country, and following the rules will prevent surprises. 
Application of Sales Tax on digital services: Some states, such as New Mexico, also apply this tax to digital services. This means that certain providers may add it to your bill if your LLC's registered address is in one of these states.
Determination of the obligation: A LLC Single-Member Disregarded A company without a permanent establishment in the U.S. is typically not subject to this tax. However, some providers apply it by default based on the company's registered address.
Strategies to avoid improper payments:
Important: Since rules vary by state, always consult with a U.S. tax advisor to ensure your LLC is properly compliant… and that you aren't being charged anything you shouldn't. 
If you are a tax resident in Spain and want to create a company in USA, one of the best options is LLC (Limited Liability Company). This legal form allows you to own a foreign company without legal or tax issues. 🇺🇸
One of the great advantages of LLCs is that they are companies passthrough: They do not pay taxes at the entity level, but their profits are passed on to the owners, who declare them on their personal taxes. Furthermore, if your LLC does not have permanent establishment in Spain, is not subject to the taxation or regulations of a Spanish company. 😎
This makes them an ideal option for businesses that operate globally, without the geographic limitations that plague other business structures. This way, you can diversify your customer base and take full advantage of the opportunities in the digital marketplace. 🌎
Another advantage is that an LLC can be anonymous, offering greater privacy and protection. However, this feature can raise suspicions with tax authorities if there's no legitimate reason to open it abroad. 😓
Therefore, it is key to maintain transparency and comply with all tax obligations in both Spain and the United States. you will avoid problems with the Treasury and you'll fully enjoy the benefits of having an LLC. 🙌
Remember: LLCs with at least one foreign-owned 25% must file Form 25% annually. 5472 before the IRS (Internal Revenue Service) to report transactions between the LLC and its foreign partners. Failure to comply can result in fines of up to 25,000 $. We handle your annual filing for you, so you don't have to worry.
Opting for an LLC in the US represents a strategic decision for entrepreneurs and digital companies seeking operational efficiency and a solid legal framework Globally. This structure offers a series of advantages that position it as a key option for the success and growth of your international business. Here are some of them:
Flexibility in management and structure
A single-member disregarded entity (SME) LLC allows you complete control over business operations without partners or complex structures. You can adapt to the digital market quickly and with less bureaucracy.
Efficiency and Legal Security: A well-structured LLC provides a solid legal framework and efficient international tax management, providing security for your global business.
Limited protection Privacy in the Public Registry
Simplified accounting
Efficient set-up and maintenance costs Reduction of bureaucracy Operational advantages: Tools, hard currency, global payments… Having an LLC opens doors that an SL can't touch.
Access to Stripe USA Access to the dollar Access to better banks Access to investment and financing
Strategic advantages: Gain a foothold in the U.S. without living there, build a global reputation, and scale your business more easily.
Favorable business environment
Reputation and credibility Internationalization of your businessEstablishing an LLC in the United States for your digital business can provide you with numerous advantages, from better access to banking services and the stability of the dollar, to the ease of using Stripe USA and the ability to internationalize your business. You'll also enjoy limited liability protection, simplified management, and a suitable framework for the growth and success of your global business. 
If you have decided to open a LLC (Limited Liability Company) in USAYou should know that there are several responsibilities and obligations to fulfill. It's not enough to simply create the company: you also have to keep it up to date with the legal and tax requirements of both countries.
Some of the responsibilities you should keep in mind include:
Public Address in the USA: You must have a public address in the U.S. to receive business correspondence. This can be your office address, your home address, or a virtual mail service.
Registered Agent in the U.S.: The person or company that receives official notifications and certified mail on behalf of the LLC. Must have a physical address in the state where you registered the LLC and be available during business hours. LLC Documentation: Include the Certificate of Formation, the Operating Agreement, the EIN (Employer Identification Number), and, if your business requires it, the ITIN (Individual Taxpayer Identification Number). They must be complete and up-to-date.Regarding tax obligations, consider the following:
US Tax Return: The LLC must file an annual tax return with the IRS (Internal Revenue Service).
Paying Taxes in Spain: As the owner of an LLC in the US, you must pay personal income tax in Spain on the profits you earn, declaring that income as income from economic activities.In addition, there are specific reporting obligations:
Form 1120 + 5472: Annual IRS return, including Form 5472 if you have at least one foreign-owned LLC. This is used to report transactions between the LLC and its foreign owners or partners. BE-13: Federal Economic Survey for investments over $3 million in a U.S. LLC or investments received from abroad. Filed with the Bureau of Economic Analysis (BEA).In Spain, you must also comply with reporting obligations:
Form 720: Mandatory if you have assets abroad valued at more than €50,000. This includes bank accounts, securities, stocks, insurance, income, or real estate. This must be submitted once, unless there are significant changes. Did you know that there are differences between LLCs in different states across the U.S.? For example, some states require an annual report summarizing the LLC's activity and information, while others don't, which simplifies management and reduces costs. Therefore, it's a good idea to compare the characteristics of each state before registering your LLC.
You are not going to pay anything there
(Inform only)
If you have one LLC (Limitated Lreliability CIf you're an LLC (company) in the United States, it's important to understand its tax framework and how you can optimize your business's tax burden. The tax treatment of LLCs varies depending on several factors. 
Among the conditions that you must meet are the following:
Compliance with these conditions may influence the tax efficiency of your LLC in the USIt's important to remember that even if your LLC is a "pass-through" entity (where profits are attributed to its owners for personal tax purposes), you are required to file an annual information return with the IRS (Internal Revenue Service).
When choosing your state of registration, it's important to consider the state's tax framework. Some states, such as Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming, do not impose state corporate or personal income taxes. This feature can contribute to the overall efficiency of your structure, provided you comply with federal and state regulations. Therefore, we recommend analyzing the advantages of each state before choosing where to register your LLC.
There are more than 40 states with different rules.
| State | State tax | Annual report | Owner Privacy |
|---|---|---|---|
| new Mexico | 0% | No | High |
| Wyoming | 0% | Yeah | High |
| Delaware | 0% | Yeah | Average |
| Florida | 0% | Yeah | Average |
| Texas | 0% | Yeah | Average |
If you want to open a commercial bank account for your business, the first thing you should do is form a LLC (Limited Liability Company) in USA. Banks will ask you for a series of documents that you can only obtain when creating the LLC.
Among the documents you will need are the following:
Articles of Organization: Document certifying the creation of the LLC and containing basic company information, such as name, address, purpose, and members.
Tax Identification Number (EIN): Number that identifies the LLC before the IRS (Internal Revenue Service), equivalent to the NIF/CIF in Spain. Form SS-4: Form you must submit to the IRS to apply for an EIN. It can be submitted by mail, fax, or online.These documents prove the legal existence of your business and are essential for meeting banking requirements. Without them, you won't be able to open a business bank account for your LLC at a neobank.
Not all banks accept foreign LLCs. Some only work with companies with a physical presence in the U.S. (an office or warehouse). Others require you to travel to the U.S. to open the account in person. Therefore, we'll recommend banks that offer facilities and benefits for your LLC.
CP 575, the long-awaited letter with your EIN number
The chart shows the average wait time (in weeks) to obtain an EIN depending on the month in which it is applied for.
🔴 In January and December The wait can last until 10 weeks.
🟡 From March to November, the time is more reasonable, between 4 and 6 weeks.
🟢 And the best time to request it is April to July, with only 3 weeks waiting.
👉 If you're thinking about setting up your LLC and need an EIN quickly, you already know which months to avoid 😉
Depending on the month of application to the IRS.
If you have one LLC (Limited Liability Company) in USA, you'll surely want to have a business bank account that offers you facilities and advantages for your business. But not all banks are the same, and some may put obstacles in your way or charge you exorbitant fees. Therefore, we recommend that you opt for the neobanks, digital banks that operate 100% online and offer you modern solutions tailored to your needs.
Among the most notable neobanks for LLCs, three stand out: Payoneer, mercury and wiseThese neobanks stand out for their compatibility with the cross-border and digital needs of LLCs.
Payoneer: American neobank operating in euros (€) and US dollars ($). It allows you to open a multi-currency account to send, receive, and convert money in more than 50 currencies with real exchange rates and no hidden fees. It includes a virtual and physical debit card for online payments anywhere in the world. mercury: US dollar-denominated neobank ($) with an online business account, invoicing and accounting tools, integrations with Stripe and Shopify, and access to financing programs. It offers physical and virtual debit cards for online and in-store payments. this link you will have immediate access. wise: Formerly TransferWise, it's a European neobank operating in over 50 currencies, including euros (€) and dollars ($). It facilitates international transfers with transparent fees, a real exchange rate, and low commissions.Neobanks comply with the same regulations and guarantees as traditional banks. By operating online and without physical branches, they reduce costs and can offer you better terms and services. Therefore, trying out a neobank may be the step your LLC needs to simplify its financial management.
Did you know USA benefits from the LLCs (Limited Liability Company) that non-residents create? Although these entrepreneurs do not pay taxes on their businesses in the US, the country receives income in another way. 🇺🇸
Each year, LLCs must pay fees to the state where they are registered. These fees vary by state, but are usually around hundreds of dollars annually. If we add up the fees of all the LLCs in the US, the result is a substantial source of income for the country. 💵
But not only that, the US also benefits from the information it collects from LLCs. When creating an LLC, owners must provide key personal and financial information, such as the EIN (Employer Identification Number) and, in some cases, the ITIN (Individual Taxpayer Identification Number). This data allows the U.S. to monitor international financial activities and strengthen its market intelligence, giving it a competitive advantage in the global economy. 🚀
💡 There are more than 2 million LLCs LLCs are very popular among American and foreign entrepreneurs due to their flexibility and protection. Each state has its own rules and advantages, so choosing where to register wisely is key. For example, Delaware It stands out for its modern legislation, its court specializing in commercial matters, and its low taxes.Many entrepreneurs believe that LLCs (Limited Liability Company) in USA They don't need to keep formal accounts. But this is a myth which can cause problems. Although LLCs do not have to file full financial statements, they are required to report certain accounting information at the federal level.
The entities requesting this information are:
These agencies require key data such as: costs, income, expenses, profits, transactions, assets and liabilities. All of this is reported on specific forms such as the 1120, he 5472 and the BE-13.
Therefore, it is essential to carry a accurate and transparent accounting for your LLC. Avoid the mistake of incorrectly reporting or inappropriately deducting expenses. Accounting should reflect the financial reality of the company, as it is the basis for calculating personal income tax and any other taxes applicable in your country of residence. Proper accounting management is key to the legal security of your business.
To avoid mistakes, you should know which expenses are deductible and which are not:
Some states require LLCs to maintain complete accounting records and file financial statements. This is the case in California, New York, Pennsylvania, and Utah. In these cases, you must record detailed income and expenses and file a balance sheet and income statement with the state.
If you have one LLC (Limited Liability Company) in USA, you should know that you have to include all the benefits of your business in the calculation of the Income Tax (Personal Income Tax) in Spain. This includes both amounts you withdraw and amounts you leave accumulated in the company. This way, you'll avoid problems with the Tax Agency and comply with your tax obligations.
Common mistake: Many entrepreneurs believe they only need to report what they withdraw from the company. However, for LLCs, U.S. tax rules state that you must declare all accumulated profits at the end of the year, whether you retire it or not.
How to pay less legally?
The key is in maximize deductible expensesThese are expenses directly related to business activity and that are necessary and reasonable. When deducted:
You reduce the tax base (the amount on which taxes are calculated) You pay less taxes You increase net profitability Expenses that No are deductible
If you're not clear about what you can and can't deduct, you could make serious accounting errors that could result in penalties. Therefore, it's essential to be familiar with the rules regarding deductible expenses, a topic we'll cover in detail in the next section.
If you have one LLC (Limited Liability Company) in USA, it is crucial to understand what expenses you can deduct from your businessOnly expenses that are directly deductible are linked to your business activity and necessary to generate income.
Principles of Deductibility:
Non-Deductible Expenses (common examples):
| Spent | USA (general criterion) | Spain (IRPF self-employed) |
|---|---|---|
| Business lunches | Deductible to 50% when it is ordinary and necessary | Deductible 10% (with limits and formal requirements) |
| Vehicles used for the activity | Deduction proportional to use accredited business | Deductible 30% if the affectation and requirements are proven |
| Fines and penalties | Not deductible | Not deductible |
Note: Percentages and criteria are subject to conditions and limitsAlways provide evidence (invoices, meeting agendas/justifications, usage sheets, etc.).
Risks of misuse:
Deductibility between jurisdictions: Rules may differ between the US and Spain. For your Income Tax As a Spanish resident, deductibility is governed by Spanish regulations, although In the US, certain concepts may be broader. Declare your LLC's profit in Spain according to Spanish personal income tax rules and document the adjustments.
Practical recommendation:
There are deductible expenses in the US that may not be in Spain (and vice versa). For prudence, guide your accounting with the Spanish personal income tax If you are a resident in Spain, always keep sufficient documentation for each deduction.
If you have one LLC (Limited Liability Company) in the U.S., you can deduct necessary business expenses… but be careful: if you are tax resident in Spain, the profits of your LLC are taxed in your Spanish personal income tax under the income allocation regime, and only You will be able to deduct the expenses recognized by Spanish law, although the IRS is more flexible.
Key idea: The profit you declare in Spain No is the net “IRS”, but the net after deducting only the expenses permitted by Spanish personal income tax law.
How does it affect you?
How to do it right?
Document absolutely everything: invoices made out to the LLC, contracts, payment receipts, emails/work orders. Only justified, routine and directly linked expenses to the activity (economic coherence).
If you doubt Regarding deductibility in Spain, consult a specialized tax advisor before including the expense.What does it mean in practice?
Inconvenient reality 
The Treasury is not naive. If it suspects, it closely reviews transactions, expenses, and even social media accounts. If it detects inconsistencies, will reclassify and the burden of proof will be on you.
Extra good practices
If you operate a US LLC but are a tax resident in Spain, the expense that reduces your personal income tax is the one that recognizes Spanish lawBelow is a visual guide to help you communicate this clearly to your client/team.
| Category | Examples | Treatment | Requirements / Notes |
|---|---|---|---|
|
💳Financial expenses
Interest, commissions, bank fees
|
Stripe/PayPal fees, interest, transfers | Deductible | Traceability with the activity and invoice/receipt in the name of the LLC. |
|
🚗Transport
Trips to clients, messaging, vehicle rental
|
Trains/Flights, Uber/Taxi, One-Time Rentals | Gray area | Just the strictly Business. Keep itineraries/agendas and receipts. Avoid personal interactions. |
|
📣Advertising/Marketing
Ads, affiliates, sponsorships
|
Google Ads, Meta Ads, affiliate commissions | Deductible | Nominative invoice and direct relationship with sales or collection. |
|
🍽️Business lunches
Meetings with clients/suppliers
|
Menus, coffees, travel tickets | Gray area with limits | No overnight limits Guidelines: 26,67 € in Spain and 48,08 € abroad. Electronic payment, full invoice and reason/client noted. |
|
🎓Training
Courses, books, materials
|
Course platforms, technical books | Gray area | Must have direct link with the activity. Provides the syllabus/program and its relationship to the service. |
|
🛡️Insurance
RC, professional responsibility
|
Liability insurance, cyber, surety | Deductible | Only strictly business ones. Personal ones → do not deduct. |
|
🤝Third-party services
Freelancers, consultants
|
Design, editing, copy, consulting | Deductible | Contract/order, invoice and deliverables report. |
|
📦Inventory
Purchases for resale, losses
|
Stock, packaging, justified losses | Deductible | Inventory control and documented losses. |
|
🖥️Physical assets
Equipment, furniture
|
Laptop, camera, desk, chair | Amortization | Deductibles via amortization according to personal income tax tables. Avoid allocating the entire amount at once. |
|
🚀Pre-operating expenses
Constitution, rates, fees
|
Registered agent, state fees, notary | Gray area | Deductible if there is support and they are affected by the start of activity. |
|
🏛️Maintenance LLC
Agent, reports, 5472/1120 pro-forma
|
Registered agent, state annuities, information forms | Deductible | Corporate compliance and registration expenses. |
|
🧰Software / Tools
SaaS, hosting, CRM
|
Notion, Google Workspace, hosting, CRM | Deductible | License in the name of the LLC and for professional use. |
|
🌐Web and domains
Domain, email, SSL
|
Domains, certificates, corporate email | Deductible | Costs directly linked to the online presence. |
|
🖇️Office supplies
Consumables, stationery
|
Ink, paper, low-value peripherals | Deductible | Exclusive or main use in the activity. |
|
📉Amortization / Depreciation
Cost distribution over time
|
Equipment, licenses with useful life | Amortization | Applies coefficients/useful life from official IRPF tables. |
Order type: Use a cloud folder with subfolders by month/area and a control sheet (Date · Supplier · Concept · Amount · Payment method · Link to invoice).
No, and be careful with this myth that is circulating out there.
Some “LLC sellers” They assure that you can deduct up to 1,500 $ per month for working from home. The basis for this error often comes from a deduction that exists in the US called home office deduction, but it doesn't apply as you think, nor does it work in your context.
Let's go step by step 
In the United States:
If you use an LLC disregarded and you pay taxes in Spain, this deduction No applies to your personal income tax. This only applies to those who file direct tax returns in the US. In Spain:
And most importantly, if you recognize part of your home as the LLC office, you may be generating Permanent Establishment (PE)…and that’s where things get complicated.💡 Conclusion: Neither 1,500 $/month in the US, nor 18,000 $/year in SpainIf you work from home, you can deduct what's reasonable and justified. Period. Don't confuse real deductions with tax marketing. Optimizing isn't inventing.
It is essential to carry one legal and transparent accounting for your LLC. Avoid the mistake of including illegitimate expenses, as this can lead to serious problems with the IRS in the US and the Spanish Tax Agency.
🚫 Risks of including illegitimate expenses:
📌 Principles of correct deductibility:
💡 Recommendation:
When two related companies (for example, with the same owner) carry out transactions with each other, these are considered related-party transactionsIt is essential that these operations be carried out under criteria of complete transparency and legality to ensure regulatory compliance.
Principle of Arm's Length: Tax regulations establish that related-party transactions must be valued at market prices, that is, at the price that would have been agreed upon between independent parties under free competition conditions. This principle seeks to ensure that profits are properly allocated to each entity, avoiding the artificial shifting of profits for tax purposes.
Keys to compliance:
Consequences of non-compliance: Manipulating prices or simulating related-party transactions may be considered tax fraudThis carries heavy fines, penalties, and, in cases involving significant amounts, even prison sentences. Tax authorities scrutinize these transactions closely to detect irregularities.
Recommendation: Always carry out related-party transactions with maximum transparency and at market prices. Consult with a tax advisor specializing in international taxation to ensure proper compliance.
Digital assets like NFTs (Non-Fungible Tokens) are a new innovation in the financial landscape. Understanding how transactions involving NFTs are handled in the context of your LLC is critical to ensuring proper tax compliance and avoiding risks.
Principles of valuation and deductibility:
Risks of unjustified operations:
Recommendation:
If you want to create a LLC (Limited Liability Company) in USAWe make it easy for you. We take care of everything so you can have your business up and running in no time, without paperwork or complications. We work with New Mexico, one of the most advantageous states for LLCs.
We register your LLC in New Mexico, with commercial address and registered agent.
ℹ️ Includes Certificate of Formation/Articles, Operating Agreement, and agent registration to receive notifications.We prepare the package and manage the SS-4 for your EIN (IRS).
ℹ️ The IRS usually takes 1–8 weeks Depending on the season, we provide an assignment letter and digital dossier.You receive your EIN and the LLC is ready to issue contracts and invoices.
ℹ️ With the EIN + original documents, you can operate and prove the existence of the entity to third parties.We help you with accounts in mercury either Payoneer.
ℹ️ Remote onboarding; multi-currency, virtual cards, and real-rate transfers. KYC/AML required.
In 1 to 2 months (depending on the IRS), you'll have your LLC ready to operate and enjoy benefits such as:
Why New Mexico: It's one of the most popular states for LLCs thanks to its simple formation, low costs, and efficient administrative framework, making it easier to maintain your company and allowing you to focus on growing your business.
If you want to create a LLC (Limited Liability Company) in USA, we offer you a comprehensive and affordable service to get your business up and running in no time. Our package costs $1,750 per year and will maintain this price until December 31, 2024 for existing customers.
Includes everything you need:
This plan simplifies administration and ensures that your LLC properly complies with all of its tax and legal obligations in the United States. You'll enjoy benefits such as limited liability protection, operational efficiency and ease of management for your global business.
When you hire our LLC creation and management service in the U.S., we provide you with the key documents to prove its legal existence, open a bank, and comply with regulations.
Tax identification number issued by the IRS. Required for banking and tax returns.
ℹ️ Includes an EIN assignment letter (CP 575 or 147C, if applicable). You can use it to activate banks and suppliers.Copy of the form filed with the IRS. Useful for banking procedures and verifications.
ℹ️ Supports the data used for the EIN (legal name, address, entity type, and responsible party).Official state document (New Mexico). It verifies name, date, and registration information.
ℹ️ It serves to demonstrate legal existence to third parties and for registration with suppliers or payment gateways.Internal rules of the LLC. Essential for demonstrating structure and separation, key if you pay taxes in Spain.
ℹ️ Defines membership, powers of the manager, distribution of benefits and limits of liability.It formalizes management in the US and reinforces that effective management is outside of Spain.
ℹ️ Includes scope, reporting, fees, and operational evidence (for banks and, if applicable, inspections).The organizer designates the member and relinquishes control. This reinforces separation and privacy.
ℹ️ It does not constitute the LLC itself, but it documents the transition and who holds corporate control.Report to the BEA when the owner is foreign. Record the investment and maintain compliance.
ℹ️ Depending on the case/threshold, it may not apply. If applicable, we prepare and submit it ourselves.Basic Excel template for recording income, expenses, and calculating profits easily.
ℹ️ Includes preconfigured formulas and LLC-adapted categories. Ideal for managing your business without complex software.Shortcuts and guides for opening accounts with Mercury, Payoneer, and others, plus helpful information for your LLC.
ℹ️ Includes official bank registration links, a document checklist, and links to relevant U.S. agencies.Setting up an LLC in the US on your own can seem like an epic adventure. But if you do it without a map or compass—without knowing exactly where you're sailing—you can easily end up running aground in murky tax waters. 
Without experience, you're flying blind. And that, in international taxation, isn't romanticism... it's real risk.
For example:
Fines for not correctly filing Form 5472 (yes, the one that almost no one mentions) or the BE-13C can exceed 25.000 $It's like hitting an invisible iceberg: you don't see it coming... until it's too late. Time, mistakes and pitfalls (which cost money)
Many people jump into creating an LLC thinking it's a simple "click, click, and done." But without prior training, it will take you weeks (or months) to understand:
And there's more:
Being able to sleep well at night… is priceless.
Maintenance is not optional
Even if you set up your LLC properly, that's just the beginning. After that, you need to maintain it:
All of this has to be done every year. And if you don't, they won't let you know: you are sanctioned.
The difference between a hobby and a serious business
Are you building a spontaneous venture or a solid foundation for financial freedom?
With our service, you not only get help creating your LLC:
Ready to sail without fear?
Your LLC, well done, it's your ship.
Us, your on-board team.
AND USA, the ocean where you can play with advantage.
Are you coming on board? 
Being able to sleep well at night… It is priceless.
Official websites and legislation:
Tax and accounting tools:
European VAT management strategies:
Official resources from other jurisdictions / international taxation:
Recommended guides, resources and services:
Extra: European legislation and directives
You cannot have salaried employees in Spain hired directly by your LLC, as this would create a "Permanent Establishment" and require you to pay taxes as a Spanish company.
However, you can hire freelancers, as long as they don't work exclusively for you or use permanent physical facilities in your name.
Of course it's possible! You can even register your business without having to travel, obtain a visa, a social security number (SSN) or an individual taxpayer identification number (ITIN). U.S. regulations do not impose restrictions on business formation for citizens around the world, except in some countries subject to trade sanctions.
If the LLC operates online without a physical presence in the United States, has no employees or dependent agents, and none of its partners are residents or citizens of the United States, it will be classified as Foreign Owned and will not be considered “Engaged in Trade or Business.” in the US» (Engaging in Trade or Business in the United States). By not having the ETBUS designation, it benefits from a territorial exemption in tax terms. In short, if the LLC meets these requirements, it will be exempt from taxes in the United States. Otherwise, you will not enjoy the exemption and must obtain an ITIN number and pay taxes in both the US and your country of tax residence.
The LLC is a versatile structure for digital entrepreneurs and non-physical businesses with a global clientele. It offers benefits such as limited liability protection, management flexibility, access to US financial markets, and operational efficiency for your global expansion. It's important to evaluate the compatibility of your business with the structure to ensure regulatory compliance.
If your business has a physical presence or Permanent Establishment in Spain (e.g., a restaurant, brick-and-mortar location, salaried employees), an LLC alone is not sufficient. In these cases, an LLC can complement a local entity (such as a Spanish limited company) for the international or digital aspect of its activities, ensuring compliance with the tax regulations of both countries.
Model 720 (Informative): The LLC must inform the State Tax Administration Agency (AEAT) about the assets and rights located abroad that belong to it, provided that the total value exceeds 50,000 euros. This filing is made annually and includes detailed information about bank accounts, securities, insurance, property, and other relevant assets.
Related transaction information: In the event that the LLC carries out transactions with related parties, whether they are people or entities with which it maintains a special relationship, it is necessary to maintain documentation that supports said operations and establishes its market value. In the case of an inspection, this information will be required to be provided to the AEAT.
Annually, we will file the following forms with the IRS on your behalf:
Form 1120: This document informs the IRS about the income and expenses incurred by your LLC during the tax year.
Form 5472: This form provides the IRS with information about the type of business and the details that will be filed on Form 1120.
Counting from the year you founded the company and every 5 years, you must fill out a BEA report:
Additionally, if you operate or plan to operate in the United States, you may need other forms. Initially, if your activity is focused on Europe, you probably don't need to worry about them:
Form W-7: Used to request the ITIN number from the IRS, similar to the EIN, allowing you to comply with your tax obligations in the country.
Form 1040NR: This form is essential at the end of the tax year to demonstrate to your country of tax residence that you have paid taxes in the United States, which could allow you to deduct them in your country of taxation.
Form 8-BEN: Requested by companies that must pay taxes on behalf of your company in the United States. In this case, the ITIN will be required.
VAT management for an LLC operating internationally depends on the nature of the services/products and the location of the customers. For B2B services, reverse charge tax may apply. For B2C services in the EU, there are regimes such as OSS. It is crucial to ensure compliance with the tax regulations applicable in each jurisdiction. Consult an expert for your specific case.
Before making any expenditure, it is crucial to keep a detailed record of it. You can use a spreadsheet like Excel to keep track efficiently, and in order to make this task easier for you, we will provide you with a template to use.
That said, it is important to note that there are certain expenses that your LLC will be able to deduct, and therefore, you will need to keep the corresponding invoices and transfer records and ensure that they are registered in the name of your LLC:
Common Deductible Expenses:
Automobile Expenses: If the LLC uses vehicles for business purposes, it is possible to deduct automobile-related expenses, such as gasoline, maintenance, and depreciation.
Business Education Costs: Costs associated with continuing education or business-specific training may be deductible.
Commercial Insurance: Insurance premiums for commercial coverage, such as liability insurance, may be deductible.
Charitable Contributions: Donations to charities may be deductible if they meet certain requirements.
Commercial Taxes and Licenses: The fees and licenses required to operate the business are deductible expenses.
Keep in mind that you will not be able to deduct expenses that are directly linked to the country, such as offices or property, as this could create tax complications for your LLC by operating exclusively from your country of residence.
If your LLC makes a clear separation between business and personal accounts, maintains accurate accounting in Excel, meticulously saves all invoices, and has an Operating Agreement, you have no reason to worry. However, if not, there is the possibility that a judge in the United States will 'pierce the corporate veil', putting the legal protection of the LLC at risk. For this reason, it is essential to rigorously comply with all the aspects mentioned above.
It is only required that the company be duly incorporated and current with all its documents, including the EIN number (company tax identification), and the manager's updated passport. It is not necessary to have a Social Security Number or ITIN. We cannot guarantee account opening, as banks must conduct a security check called KYC (Know Your Customer), which is mandatory under federal regulations established in the Patriot Act, before approving a customer. .
In the event that we are unable to register your business within 60 days due to an error on our part, we will refund the full amount you paid, with no questions or explanation required.
If you receive a notification from the tax authorities, it's essential to remain calm and prepare documentation demonstrating your LLC's compliance with applicable regulations. This includes the Operating Agreement, management contracts, bank statements and accounting records, and US tax forms. It's crucial to prove the LLC's effective management outside of Spain and that a Permanent Establishment has not been established in your country of residence. Always seek the assistance of a specialized tax advisor.
Yes you can, but keep in mind that any profit generated from crypto or NFT transactions must be declared on your Spanish personal income tax return under the income attribution regime. The Treasury closely monitors these activities, so keep accurate documentation of all transactions.
The easiest way is to use platforms like Wise, Payoneer or Stripe, which allow you to receive payments in euros, easily convert currencies, and transfer funds to your European bank account from the LLC.
YeahEven if you don't have any profits, you'll need to file information forms 5472 and 1120 in the U.S. each year to keep your LLC active.
In Spain, if you don't have any real profits, you won't be required to pay personal income tax, although it's a good idea to keep supporting documents to prove your lack of income.
It is not legally mandatory in all states, but it is highly recommended. The Operating Agreement protects your limited liability, strengthens your position against tax audits, and prevents misunderstandings about who actually exercises effective management of the company.
In LLC.Devil.MarketingWe are with you every step of the way to open your bank account from the comfort of your home. We do our best to make the process easier for you, but keep in mind that the final say lies with the banks and their own regulations.
If for some reason things don't go as planned, no problem. We offer you 60 days from when we receive your documents to request a refund, as long as there are no delays from the IRS or the State, as those are out of our control.
At times, the US or Spanish tax authorities may require additional information, which could complicate the process. In those cases, and even if we regret it, we will not be able to make a refund.
We understand a lot about business, but for legal or tax matters, it is best to consult an expert. A lawyer or accountant will be your best ally for binding tax and legal consultations.
Although we are here to support you, remember that we are not lawyers. For those more complex legal dilemmas, we will help you find a qualified professional.
The information provided may change, so we recommend that you do not consider it immutable.
