Video · From Croatia
Can a Croatian Own a US LLC? Where It's Managed Decides the Tax (2026)
Running a US company from Croatia? A company whose place of effective management and control is in Croatia is Croatian-resident and pays Croatian corporate tax. 4:52 long, published .
Transcript
What the video says
0:00Can a Croatian resident own a US LLC?
It's late afternoon in Zagreb, and Luka has a buyer in America for his software. The buyer would rather sign with a US company, so Luka is wondering about one. On the American side, he can have one. No social security number, and no trip to the US. We're BaseAcross. We set up US companies for founders outside America, so we'll be straight with you. From Croatia, the harder part is where the company is run.
Managed from here, a US company can count as Croatian, and the US tax treaty is signed but not in force.
0:32Do you need a US company for Stripe in Croatia?
First, does he need one at all? For card payments, maybe not. The big card processor already supports businesses in Croatia, and a Croatian company gets you that too. But some US buyers and platforms want a US contracting party. US investors usually want a Delaware C-Corp. And a Croatian company can own a US one as its subsidiary, though Croatia's rule on controlled foreign companies can then apply, so ask first. Luka's buyer wants a US vendor.
That's his reason.
1:05Can Croatia tax your US company as Croatian?
Here's Croatia's central rule. A company is resident in Croatia if its seat is registered here, or if its place of effective management and control is here. A resident company pays Croatian corporate tax, at a lower rate while its revenue stays under a set amount. So a US company Luka runs from Zagreb can be Croatian-resident, wherever it was formed. You're resident yourself if you have real estate at your disposal here, or you're here, for a set number of days in one or two calendar years.
These rules come from PwC's tax summaries, so confirm them with your adviser.
1:39Wyoming LLC or Delaware C-Corp, and an EIN without an SSN
The American part is simpler. A Wyoming LLC suits an owner-run business selling to US customers, once you know where it will be managed. A Delaware C-Corp suits raising from US investors. The company needs a registered agent, an address in that state for legal papers, not where you work. Then the EIN, the company's US tax number. Without a social security number or an ITIN, the application goes on a separate IRS form instead of the online tool.
Prices are in US dollars, so check your card's exchange rate and fees.
2:15Which US bank accounts work from Croatia?
Now the bank. A US fintech bank doesn't open accounts for founders who live in Croatia. It goes by where you live. A multi-currency account is the one to check first. A US company run from Croatia can usually get US dollar account details there, and it reviews each business. Another US bank doesn't bar Croatia, but it asks every owner for a physical US address. Each provider decides for itself, so ask before you order.
With a US account, Luka can also apply to the card processor as a US business, and it can decline.
2:48How are the company and its dividends taxed in Croatia?
Then Croatian tax, in the guide's own example. Say Luka's Wyoming LLC makes ninety thousand euros of profit, on revenue well under that threshold, and he manages it from Zagreb. Its place of effective management and control is in Croatia, so it's resident here, and the lower rate gives nine thousand euros. Croatia also taxes dividends. Paying the remaining eighty-one thousand to Luka as a dividend costs nine thousand, seven hundred and twenty more. That's an illustration, not a quote.
How Croatia classes the LLC, and how it pays him, are for his tax adviser.
3:26Do you pay US tax, and is there a US–Croatia treaty?
In America, there's no income tax treaty with Croatia in force. The two countries signed one, and later a protocol, but it hasn't taken effect. So US-source dividends, interest and royalties paid to you are withheld at the full rate, unless a US exemption applies. Pay for work you do in Croatia generally isn't US income, so nothing is withheld on it, and a single-owner LLC with no US office or staff often owes no US income tax on it. It still files a report with the IRS when it has reportable transactions with you, and missing it is expensive. For a calendar-year company, it's usually due in mid-April.
Until it takes effect, ask your adviser how to get credit for any US tax withheld.
4:09What to do first, in order
Put together, the order runs like this. Start with a Croatian tax adviser: whether you need a US company at all, where it will be managed, and how its profit reaches you before the treaty takes effect. Then pick the name and registered agent, file with the state, and check the operating documents. Then the EIN. Then the bank, starting with the multi-currency account. After that, keep the books, and minutes showing where decisions are made, and put the IRS report and your Croatian return on one calendar. The full guide, with every source and a checklist in English and Croatian for your adviser, is linked below. And Luka?
He'll sign with his American buyer once he knows where the company is managed.
The founder in the video is an example, not a customer. The rules in it were checked when it was made; the guide carries the current sources.
The guide
Costs, documents, timelines and the rules in Croatia, with sources.
Read the guide for CroatiaWatch on YouTube