Is Setting Up an LLC as a Digital Nomad Really Worth It?

 

 

 

You’ve probably heard the advice: “Just open an LLC in Wyoming or Estonia and pay no taxes!”

But is it really that simple?

Let’s break down whether forming a Limited Liability Company (LLC) makes sense for digital nomads and remote freelancers in 2025 — and what you need to know before you spend a dime.

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🏛️ What Is an LLC and Why Do People Use It?

An LLC is a flexible business structure that can help:

• Separate personal and business finances
• Provide legal protection
• Reduce taxes (in the right jurisdiction)
• Boost professionalism and client trust

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🌍 Pros of Setting Up an LLC Abroad

• Lower or no corporate tax (e.g., UAE, Georgia, Estonia)
• Access to international banking
• Works well for global clients & SaaS businesses
• May help with visa/residency applications

Some nomads combine LLCs with e-residency programs (like Estonia) or local tax schemes (like Georgia’s 1% entrepreneur plan).

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⚠️ What to Watch Out For

• LLC ≠ tax-free. You may still owe taxes in your home country
• You must report foreign income/accounts in many countries (FBAR, FATCA, etc.)
• Setting up & maintaining costs money: legal, compliance, banking
• Some payment processors don’t accept offshore LLCs easily

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🧠 When It’s Worth It

Setting up an LLC may be worth it if:

• You earn consistently over $60,000–$100,000/year
• You work with clients internationally
• You want a “clean” business structure for invoices, banking, and taxes
• You’re based in a low-tax or tax-treaty country

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🚫 When It’s Not Worth It

Skip the LLC for now if:

• You’re just starting out (< $30,000/year)
• You only work with local clients
• You’re not comfortable with admin/paperwork
• You don’t fully understand the tax implications

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✍️ Final Thoughts

An LLC can be a powerful tax and business tool — but only if used correctly.

Don’t follow hype. Follow strategy.
Before jumping in, speak with an advisor who understands both your home country’s rules and global tax options.

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🧳 Next up: How to Get Paid as a Digital Nomad — Banking, Platforms, and Invoicing Tips.