US LLC as a real alternative to being self-employed in Spain

For Spanish freelancers with international clients, a US LLC can be a serious alternative to the classic autónomo route: banking, privacy, tax structure and real operations.

An LLC can be a powerful alternative to Spain’s autónomo regime when there are international clients: better banking, privacy, global invoicing and well-documented real tax savings.

That's why more and more freelancers, small agencies, developers, advisors, course creators, traders and content creators look for real alternatives to being an autónomo in Spain. And the one that fits best for fully digital profiles with international clients is the US LLC. It is not magic, not a trick, not tax fraud. It is a legal structure recognized by Spanish administrative doctrine and supported by the US-Spain double-taxation treaty that, designed properly, can save thousands of euros per year and let you operate as a modern international business.

This is the honest version. No impossible promises. Numbers, advantages, drawbacks and the profiles for which it does not make sense.

Why so many autónomos look for alternatives

The reality of the autónomo regime today is clear:

• Monthly contribution: between €230 and €590/month depending on your income bracket. The most common range for digital freelancers billing well is €300-400/month, i.e. €3,600-€4,800/year that you pay no matter what you bill.
• Progressive IRPF: from 19% to 47%. Above €35,200 you're already in the 37% bracket; above €60,000, in the 45%.
• Quarterly advance payments: Modelo 130, paying 20% of your profit upfront before knowing if you'll really earn it.
• VAT: Modelo 303 quarterly, Modelo 349 if you trade with the EU, OSS for B2C in other EU states, complex exemptions for clients outside the EU.
• Information forms: 347, 390, 190, 111… plus Modelo 720 if you hold accounts or assets abroad above €50,000.
• Zero asset protection: if something goes wrong, your house, car and savings are on the line.

Emotionally, the problem is even worse: you work like a global business but you pay and you bureaucratize like a corner shop.

What a non-resident LLC really is

A Limited Liability Company (LLC) is a US legal form that combines the asset protection of a corporation with the simplicity of a sole-trader tax flow. For a non-resident, a Single-Member LLC is by default a Disregarded Entity: the <a href="https://www.irs.gov" target="_blank" rel="noopener">IRS</a> does not treat it as a separate taxpayer; the LLC's profits "pass through" to the single member. This is pass-through taxation.

If you, a non-resident for US tax purposes, form an LLC in New Mexico, Wyoming or Delaware and your activity does not generate ECI (Effectively Connected Income) in the US, the LLC pays no federal US income tax. It also pays no state tax in those three states. It only meets information requirements: Form 5472 + a pro-forma Form 1120 with the IRS and the BOI Report with <a href="https://www.fincen.gov" target="_blank" rel="noopener">FinCEN</a>.

For Spanish tax purposes, that LLC is treated transparently: the <a href="https://petete.tributos.hacienda.gob.es" target="_blank" rel="noopener">DGT</a> has issued binding rulings (most cited, V0290-20 of February 2020) confirming that US LLC are taxed in Spain in a manner analogous to a pass-through entity. As a Spanish tax resident, you declare the net profits of the LLC on your IRPF. The structure does not hide anything from the Spanish tax office: it simply changes the vehicle from which you bill.

> Every case is individual. The exact tax classification depends on how the LLC is set up, what activity it performs, where its clients are, and what is documented. That's why, before forming, the sensible move is to study your case with a Spanish tax advisor who knows international structures and a team like Exentax that designs the US side.

Real tax advantages: a documented US federal outcome + optimized IRPF in Spain

The US side is the cleanest one: conditional US federal treatment, 0% state in NM/WY and effectively zero in Delaware if you don't operate there. It's not a tax haven: it's what the US rules themselves provide for non-residents without ECI. The LLC pays its annual maintenance (registered agent, IRS and FinCEN filings) and not much more.

The Spanish side is where the real saving lives, and it deserves a clear explanation:

• You are taxed on your IRPF on the net profits of the LLC: revenue minus deductible business expenses.
• The list of expenses you can document through an LLC is much broader than the average autónomo's: software, hardware, training, business travel, coworking, proportional home office, professional services, Stripe/PayPal fees, subscriptions, marketing, registered agent, accounting, and more.
• The autónomo monthly quota disappears: you stop paying €300-400/month just for existing as a business.
• The autónomo's quarterly forms disappear (303, 130, 349 mostly). You still have your individual obligations: annual tax return, Modelo 720/721 if you cross thresholds, etc.
• As an individual you only get taxed on what you actually earned, not on what you billed.

Real annual savings with numbers

Two typical scenarios so this doesn't stay abstract:

Scenario 1, Freelancer at €60,000/year

• As autónomo: annual quota ≈ €4,200, limited deductible expenses (≈ €6,000), taxable base ≈ €54,000, effective IRPF ≈ 30%. Total tax + quota: ≈ €20,500.
• With a properly designed LLC: deductible expenses ≈ €15,000 (full pro stack billed via the LLC), base ≈ €45,000, effective IRPF ≈ 25%. LLC maintenance ≈ €1,500-€2,500. Total: ≈ €13,000-€14,000.
• Net annual saving: between €6,000 and €7,500.

Scenario 2, Digital agency or advisor at €120,000/year

• As autónomo: quota ≈ €4,800, IRPF reaching 45% brackets. Total estimate: ≈ €45,000.
• With LLC: more planning capacity, more legitimate deductible expenses, no monthly quota and the option to retain profits inside the LLC for reinvestment. Total estimate: ≈ €28,000-€32,000.
• Net annual saving: between €13,000 and €17,000.

The numbers are indicative; each case depends on real expenses, structure and how the income is qualified. But the direction is clear: from €30,000-€40,000/year of digital revenue with international clients, the LLC starts to make economic sense.

Access to US banking without automatic reporting to Spanish tax authorities

This does not mean they're opaque or that you can stop declaring them. If you cross Modelo 720/721 thresholds (€50,000 in foreign accounts, crypto, etc.), you must declare them anyway. If you receive income through your LLC, you must include it in your IRPF. What it does mean is that there is no automatic data cross-check: information reaches Spain through you, via your own filing, not via a bank file. That requires clean, well-documented records: omitted information can lead to an audit, adjustments and penalties. At Exentax we open the case, file what is missing and reply to the relevant authority for you.

The banking stack we recommend for a modern LLC:

• Wise Business, Relay and Slash in the foreground: multi-currency, sub-accounts, cards, treasury; Wise Business held by a US LLC is OUT of CRS (the LLC is a US entity and the US is not a CRS participant); only a Wise Personal in your own name as a Spain tax resident would be in CRS via Wise Europe SA (Belgium).
• Mercury in the background: possible USD operating layer, with current partner-bank/sweep limits and real continuity planning.

For whom it works and for whom it doesn't

The LLC works very well if:

• You bill mostly clients outside Spain (EU or worldwide).
• Your work is 100% digital: software, SaaS, marketing, design, advisory, online training, info-products, content, ecommerce.
• You're willing to operate in USD and integrate with US tools (Stripe, Mercury, etc.).
• You want to separate your personal assets from the business.
• Your billing is over €30,000-€40,000/year and you see yourself growing.

The LLC is not a good idea if:

• Your clients are mostly Spanish individuals or companies that need a local VAT invoice.
• You're in a regulated profession (lawyer, doctor, registered architect) with national clients.
• You bill less than €20,000/year: the savings don't justify the maintenance.
• You're not willing to keep the LLC's books or meet IRS and FinCEN deadlines.
• You're looking to "not declare anything in Spain". This isn't about that; it's about optimizing what you do have to declare.

Autónomo vs LLC at a glance

How Exentax walks the path with you

At Exentax, we do not present a US LLC as a universal shortcut. We design complete structures for digital freelancers and small businesses that need a legal, documented and bankable way to move beyond the Spanish autónomo model. The typical process:

1. Free initial diagnosis (30 minutes): we review your billing, client mix, tax residency and goals. We tell you honestly whether the LLC suits you or not.
2. Structure design: optimal state (NM/WY/DE), banking, payment processors, treasury and compliance.
3. LLC formation and EIN.
4. Integration with Stripe, PayPal Business, Interactive Brokers or whatever you need.
5. Coordination with your Spanish tax advisor (or we recommend one) so that the Spain side is impeccable.
6. Full annual compliance: Form 5472 + 1120 pro forma, BOI Report, registered agent renewal, reminders and ongoing support.

It's not plug-and-play. It's a project. But from year one onwards, the difference vs your current autónomo situation shows up in every "self-paycheck".

Before we close

Every case is individual. Legislation changes, both in Spain and in the US. What is optimal today may need adjustments tomorrow. So this isn't a guide to "rush and open an LLC", but to truly understand the alternative before making a decision that will impact your tax life for years.

At Exentax, we review your real numbers in context: tax, banking, compliance, payments and money movement. The goal is not a pretty structure on paper, but a serious operating decision.

To go deeper, read our guide on <a href="/en/blog/spanish-autonomo-vs-us-llc-structure-and-reality">Self-employed in Spain vs LLC in the US: complete tax comparison</a>, our piece <a href="/en/blog/leave-spanish-autonomo-with-a-properly-structured-llc">Why Spanish freelancers are leaving self-employment for a US LLC</a> and our guide on <a href="/en/blog/us-llc-bank-accounts-fatca-crs-and-privacy">Do US bank accounts report to your home tax authority? The honest answer</a>.

book your strategic review with Exentax and stop paying like a year-2000 freelancer when you actually run a today digital business.

As an autonomo alternative, the LLC is serious only when it creates a cleaner operating file: foreign clients, business expenses, bank separation, contracts, compliance dates and a local tax treatment that can be explained.

> <a href="/en/book">Review my case</a>

• Mercury: for former self-employed profiles or high personal-tax cases, it can organise USD receipts for an LLC when activity, clients and tax residence are documented. It does not fix a poorly planned transition and should not mix personal expenses with corporate funds.

• Payoneer operates through European entities (Payoneer Europe Ltd, Ireland) that are also in scope for CRS for clients resident in participating jurisdictions.

Why comparing an LLC and the Spanish self-employed regime requires comparing operating profiles, not just costs

Comparing a US LLC with the Spanish self-employed regime works best when the comparison is built around the operating profile rather than around a list of headline costs. Two operating profiles that look similar on a surface description can produce very different practical outcomes once invoicing geography, currency mix, and client mix are taken into account.

The cleanest way to make the comparison readable is to write the operating profile in one paragraph and then map each feature of the profile to one or the other regime. This approach makes the trade-offs explicit and avoids the trap of letting a single attractive feature drive a decision that affects the whole structure.

Compare autónomo and LLC with real numbers

For a Spanish freelancer, the LLC conversation has to be practical: clients, invoices, IRPF exposure, VAT, bank accounts, retained profits and real management. Exentax analyses whether the structure improves the case or simply adds noise.

Living in Spain with a US LLC: effective taxation, filings and worked cases by revenue band

A US LLC does not exempt you from tax as a Spanish resident: it gives you a tool to reorder your tax bill and reduce mandatory contributions, but everything is settled inside your Modelo 100. This block explains the filings you will be doing one way or the other and shows three worked cases by revenue band using the state and regional IRPF brackets.

Filings to expect when living in Spain with a US LLC

• Modelo 100 IRPF: you declare the LLC's attributed result as business income if you actively manage, or as capital income if your case fits the DGT V0290-20 doctrine. The classification is decided with your advisor based on your real role.
• Modelo 720: if the sum of Mercury, Wise and Relay accounts crosses EUR 50,000 on 31 December, the information return is mandatory.
• Modelo 721: if you hold crypto on Kraken, Binance or non Spanish exchanges and the total exceeds EUR 50,000, you must file.
• Modelo 232: only if the LLC has related party transactions with another entity, not for being held by a natural person alone.
• Modelo 130 or 131: if you tax as direct business activity, quarterly instalments at 20 % of net profit apply.
• Modelo 303 and 349: Spanish VAT and VIES follow the usual rules if your LLC has Spanish operations; in most cases invoicing happens at LLC level with zero Spanish VAT impact, but it deserves review.
• Modelo D-6: information return on foreign equity stakes held abroad. A 100 % stake in a US LLC fits here for many profiles.

Case 1: EUR 50,000 of attributed net revenue

After expenses and your active management compensation, attributed net is EUR 38,000. Applying state and an average regional IRPF, the effective rate sits around 24-26 % of base. Without Spanish social security on the LLC side (you are not autónomo), the saving versus the minimum quota on the new autónomo income table is already significant. Annual net cost: about EUR 9,500-10,000 of IRPF.

Case 2: EUR 120,000 of attributed net revenue

With professional expenses and an office, net drops to EUR 95,000. IRPF lands in the 34-37 % effective range in most regions, that is EUR 32,000-35,000. Compared with autónomo without Beckham, it stays competitive and removes the need to contribute to RETA under the new income based table.

Case 3: EUR 250,000 of attributed net revenue

Here the nuance matters: the LLC remains useful for operations and banking, but at EUR 250,000 the IRPF effective pressure goes above 42 % in most regions. The right move is to combine the LLC with extra planning (pension plans, R&D expenses, possible move to SL if it fits) and, above all, evaluate whether moving to a more favourable jurisdiction makes sense.

What a US LLC does not solve while living in Spain

It does not waive your Modelo 720, does not hide anything from Hacienda thanks to the FATCA exchange, does not remove the duty to contribute if you actually carry on autónomo activity in Spain, and does not turn crypto into a tax free asset. Its value lies in global operations, banking, payment gateways, asset separation and administrative simplification.

> Want the exact number for your revenue? Run your figures through the <strong>Exentax advisory team</strong> and get the annual IRPF result with and without the LLC.

If your main goal is minimising tax, continue with <a href="/en/blog/pay-less-tax-with-residency-llc-and-structure">the legal paths to pay the minimum possible</a>, and if your main asset sits in crypto or foreign brokers complete with <a href="/en/blog/modelo-720-and-721-guide-for-llc-wise-and-crypto">the Modelo 720 and 721 guide</a>. To review your case, <strong>book a session with Exentax</strong>.