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Author: Admin | 2025-04-28
Is best. If you are operating a crypto mining business that generates ordinary income, that is a different strategy. The taxation of the LLC will be covered under the “best entity” section. U.S. residents need to consider if holding crypto can they hold that in an out of state entity such as Wyoming, or will the management of the LLC create nexus in their home state, even for “safe assets” or “investments.” NCP conducted research with Deloitte on this important subject back in 1998 when looking at a similar strategy with an LLC and investments through a brokerage account. This falls under the multi-state taxation rules. Manager Managed vs. Member Managed The management structure is not one to overlook. There is an important difference between a manager-managed LLC vs. a member-managed LLC. This is especially important for crypto holders. If you are operating a crypto business, perhaps you have created your own coin, protecting the managers and owners of the LLC would be paramount and the state of formation, even with foreign qualification is critical when it comes to properly planning. Don’t be surprised if you find one approach from your attorney when it comes to protecting your crypto, and what your CPA may say about it. This is why we have interviewed and consulted with both sides to fill in the gaps. Tax Treaties Non-residents have much more involved with taxation when opening a U.S. LLC but keep in mind exchanges do have limitations on specific states. For example,
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