US LLC from Bolivia: Is It Tax-Free? Where the Work Is Done Decides

0:00Can a Bolivian own a US company?

Valeria builds software in La Paz. Her clients are abroad, and she wants to take card payments from them. So, can she have a US company from Bolivia? As far as America goes, yes. No visa, no social security number, and no trip. The real question is somewhere else. It's how Bolivia taxes the work she does at home. We're BaseAcross. We set up US companies for founders outside America, so we'll be straight with you.

And the time difference is small. Cheyenne, in Wyoming, is two hours behind La Paz in July, and three in January. Let's take it one question at a time.

0:38Why a US company at all?

First question: why a US company at all? Usually it's for card payments, US buyers, or US investors. The big card processors don't serve Bolivia, and a US company with a US bank account lets you apply. It's an application, and it can be turned down. But a US company doesn't move your work. If you write the code in La Paz, the work is still done in Bolivia. So start with two things.

Whether you need a US company, and where the work will be done.

1:09Bolivia taxes where the work is done

Second question, and it's the one that decides everything. Bolivia taxes income from Bolivian sources. And income from any activity carried out in the country counts. So work done in Bolivia is Bolivian income, whoever sends the invoice. Here's the other half. Running a US company from Bolivia doesn't make the company Bolivian. A company is Bolivian when it's incorporated there.

But the work Valeria does at her desk in La Paz can still be Bolivian income. Both are true at once, and that's why this needs an adviser early.

1:44The mirror: money that comes from abroad

Third question: what about money that comes from abroad? Think of a mirror. Above the line, the work done in Bolivia. Below it, what comes from abroad. Dividends from abroad aren't taxed in Bolivia. And Bolivia has no rules that tax profit just because it sits in a foreign company. Here's the guide's own illustration. If Bolivia treated the company's profit as earned through a permanent base in Bolivia, that profit would be taxed there.

What's left, paid out as a dividend, wouldn't be. Whether that applies to you is for your adviser.

2:19Wyoming LLC or Delaware C-Corp, and an EIN without an SSN

Fourth question: the American part, and it's the quick one. A Wyoming LLC for a business you run yourself. A Delaware C-Corp if investors want shares, though it pays US corporate tax. The company needs a registered agent, an address in that state for legal papers, not where you work. The state approves the filing, and the company exists. Then the tax number, the EIN. Without a social security number, it's a paper form to the IRS.

And when you pay from Bolivia, check your card's limits, exchange rate and fees first.

2:54Which US bank works from Bolivia?

Fifth question: where does the money land? One of the US fintech banks most videos recommend takes applications from founders in Bolivia. Others don't give US account details there, or want a US address for every owner. Each one decides for itself, and from Bolivia, expect more questions than usual. So use the same name, the same address, and the same description of the business everywhere.

An honest, consistent application is the one that gets

3:25No US–Bolivia treaty, and Form 5472

read. Last question: the American side. There's no tax treaty between Bolivia and the United States. So US withholding on things like US dividends, interest and royalties stays at the full rate. But work done in Bolivia generally isn't US income, so nothing is withheld on it. The company still files a report with the IRS every year, even in a year without sales, and missing it is expensive.

For most single-owner companies it's due in the spring, and there's a form to ask for more time, if you file it before the deadline. And how Bolivia treats the money the company pays Valeria is a question for her adviser.

4:05The order to do it in

So here's the order. Work out where the work is done, with your adviser. Then plan the bank. Then form. Put the IRS report and your Bolivian filings on one calendar, and keep a record of where each piece of work was done. The full guide, with every source and a checklist for your adviser in English and Spanish, is linked below. And Valeria? She took the checklist to her adviser first.