In my experience, there is some confusion on this issue on various sites and companies on the internet. First and foremost is the clarification that there is no such thing as an offshore company in the traditional sense in the US.
US LLCs, known as offshore LLCs, can be tax-exempt in their home state, but only if they do not carry out activities there. However, it should also be noted that the LLC does not pay tax, but its profits are "passed through" to the members, which the members are required to declare as personal income. However, in my experience, this is something that an entrepreneur thinking of running an offshore company is reluctant to do. If the entrepreneur is a Hungarian tax resident and has a registered LLC in the US (e.g. Delaware), then the entrepreneur will have to pay taxes on the income in Hungary. I would like to note here that the cooperation between the US and Hungarian tax authorities is very flexible and fast in this respect.
It is also important to note that US companies are also required to report their bank accounts to the US Internal Revenue Service (IRS). This means that if a company's bank account balance exceeds USD 10,000, it is always required to report where and which bank account it has. The obligation also applies if a company has more than one bank account and the total assets in those accounts exceed USD 10,000. The limit therefore applies not only to one account but also to all accounts. For example: if a company has 5 bank accounts with USD 2,000 in each of them, the reporting obligation already applies. Failure to comply with this obligation will result in a fine, up to a maximum of USD 500,000.
Another disadvantage may be that in the US you can only open a bank account in person, and the cost of doing so remotely is very high.
So, in summary, the US LLC is not a bad choice, just not to be confused with offshore companies. There are some activities for which this form of business is the best option (mainly if one wants to invest in the US or do business in the US market). Another big advantage is that the member(s) can get a business visa and if the company can run successfully, can do business successfully, can apply for a green card after 1 year.
I trust I have illustrated the main differences.
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