Hello Expatriates community,
I'm seeking guidance on a somewhat intricate situation. I'm a German citizen, currently freelancing for a US-based company. I reside in Germany, where I'm also registered as unemployed, following the recent completion of my studies. To streamline my work with the US company, I've established an LLC in the US. My ultimate ambition is to move to the US.
I'm grappling with a few pivotal questions:
- From a taxation perspective, would it be more beneficial for the US company to direct payments to my LLC, after which the LLC would compensate me?
- Given Germany's tax system, which taxes residents on global income, how should I address the potential tax ramifications of earning via a US-based LLC?
- I'm aware of the US-Germany Double Taxation Treaty. How might this accord apply to my circumstances, and are there specific provisions I should be especially cognizant of?
- Are there any common oversights or essential factors I should take into account, particularly concerning receiving income through a US LLC whilst residing in Germany?
My primary objective is to optimize tax efficiency, all the while preparing for a potential relocation to the US. I greatly value any expertise or insights you can share on this matter.