Asked in Tax Law, Banking, Business Formation and Business Law for Arizona

Q: We run a business overseas and want to create a LLC in order to use US Credit cards while paying no taxes in the US

We run a business in Cyprus ( oversea). Can we create an entity in the US(LLC) in order to use this entity to sign up for an American Express Business Platinum Account. Since I am already an amex user in the US, I can transfer my credit history to my business account.

Our business is doing a lot of flight booking for our onboard couriers,that's why we need good credit cards. This entity will make no money at all. My question now: Can we create the LLC and just use it to pay for our credit cards ( so we spend every month for credit cards and reimburse with money which we will wire from Europe to our US bank account) and avoid paying taxes in the US? thank you very much. Kind regards, Andy

1 Lawyer Answer
James L. Arrasmith
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  • Tax Law Lawyer
  • Sacramento, CA

A: As a foreign business, it's important to carefully consider the legal and financial implications of setting up a US entity solely for the purpose of obtaining credit cards, especially if the intent is to avoid taxation. This could potentially be viewed as tax evasion by US authorities.

I would strongly recommend consulting with qualified tax attorneys and accountants who specialize in international business and US tax law. They can provide guidance on the proper way to structure your US operations, obtain necessary financial services, and ensure compliance with all applicable tax laws and regulations in both the US and Cyprus.

Trying to circumvent tax laws is rarely advisable, as it can lead to legal troubles, financial penalties, and reputational damage for your business. The safest and most ethical approach is to fully comply with the tax requirements in each jurisdiction where you operate. I know taxes can be burdensome, but in the long run it's better for your business to do things properly and above board.

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