To begin, a first question arises: should you carry out your operations related to digital assets (cryptocurrency trading, mining, staking, etc.) through a legal entity? In the event of professional exercise of your activities, it will be essential that these are legally framed within a company.
The US tax administration (IRS) considers cryptocurrencies to be assets or property, but not currencies. As a result, gains on cryptocurrencies (cryptocurrency trading in the lead) are treated the same as profits from the sale of a stock, rental property, or any other passive investment.
The wise investor will benefit from a very favorable ecosystem by combining the efficiency of cryptocurrencies with the management flexibility of an American LLC in several respects:
The American LLC is an effective and economical solution to protect your personal assets. Partners are therefore protected! It also considers various prices; LUNC price, BTC price, and others.
The LLC USA allows savings in taxes (0% corporate tax, the LLC being considered for tax purposes as a transparent entity.)
De facto, the US LLC is an excellent legal form when your activity involves any risk and/or if you want your business to benefit from advantageous tax options and increased credibility.
A US LLC is a limited liability company. This means that your private assets (e.g. your car, your house, your bank account) are safe from the appetite of malicious third parties if your business is sued or fails to repay a debt.
Cryptocurrency trading businesses, cryptocurrency mining companies, e-merchants, traders, consultants, trainers, equipment retailers… can benefit from liability protection thanks to this legal form. It is impossible for a creditor to bring proceedings against you as a natural person. On the other hand, the invested capital is protected since once your digital assets are hosted within your LLC, these assets de facto belong to your American entity.
This makes the US LLC a great option when trading cryptocurrency, even with some “rare pairs” like BTC/USDT.
What are the tax advantages of receiving cryptocurrency trading income through an LLC?
American LLCs have the particularity of offering the possibility of customizing their tax structure. This allows companies to use the best tax strategy based on their situation.
In case of doubt as to the taxation applicable to activities inherent to digital assets (in particular cryptocurrency trading), do not hesitate to book a crypto telephone interview with one of our specialized tax specialists who will help you to identify with precision the applicable regime. to your personal situation.
Benefits of Cryptocurrency Mining Activities
Cryptocurrency miners should treat mined cryptocurrency as income. If a smaller transaction is conducted from your personal computer, it is likely a private activity. Any larger operation will, however, be subject to a professional regime. A cryptocurrency mining business structured within a USA LLC enjoys partner liability protection, will be able to amortize business expenses, and will be eligible for substantial tax and social charges.
By opting for this legal form, you will therefore not be forced to wait for the end of the financial year and the publication of your financial statements to pay your dividends.
