Tax
Tax residency
Tax residency is the status that determines which country has primary rights to tax an individual or company on worldwide income. Residency rules vary by country and commonly depend on days spent, permanent home, or centre of vital interests, rather than on nationality.
In plain terms: Which country treats you as its taxpayer.
Why it matters
The single most important fact in any international founder's tax position, and the one a US LLC does not change. Where you are resident usually determines whether your company's profit is taxed at home regardless of where the company was formed.
Common misunderstanding
Believing a foreign company changes your residency. It does not; residency attaches to you, not your entity.
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