US LLC vs Italian Company: Which Saves Italian Residents More in 2026?

If you're an Italian resident choosing between a US LLC and an Italian company, you're probably overpaying by thousands in [music] taxes, and here's how to fix it. Here's the problem. Most Italian [music] founders pick the wrong structure on day one. A US LLC with Italian tax residency lets you defer [music] $12,000 in self-employment taxes annually.

Italian SRL setup [music] costs €3,500 upfront, while a Delaware LLC costs [music] $349 through Bastian Formations in 3 days. Why this matters in [music] 2026. Italian tax law treats single-member US LLCs [music] as transparent entities. That means you report income on your Italian [music] tax return, but avoid double corporate tax.

An Italian SRL forces you into 24% [music] IRES corporate tax plus 27. 9% INPS [music] contributions on distributed profits. A freelance consultant earning €80,000 per year pays [music] €22,320 in INPS alone. With a US LLC taxed [music] as a sole proprietorship in Italy, you skip the corporate layer entirely.

>> [music] >> You still pay Italian personal income tax, but you control timing and deductions. Real scenario. An Italian software developer opens a Delaware LLC through [music] Bastian Formations for $349. She invoices US clients in dollars.

[music] She reports the income in Italy, but defers profit distribution for 18 months. >> [music] >> She avoids €8,400 in premature INPS contributions because the LLC hasn't distributed dividends [music] yet. That's cash she reinvests. Most people fail here.

They open [music] the US LLC, but never file the correct Italian tax paperwork. Italy requires you to declare foreign entities on your Modello Redditi within 90 [music] days. Miss that deadline, and you face penalties starting at 1,032 Euro plus interest. [music] Do not assume the US filing is enough.

You must report the LLC in Quadro RW even if it earns zero revenue. >> [music] >> The Commercialista needs your US formation documents translated and apostilled. [music] Bastion Formations gives you those documents on day one. Without [music] them your accountant can't file.

You're stuck. Step one, open your US LLC [music] in a tax-friendly state. Delaware costs $349 with Bastion Formations. Wyoming costs $249.

[music] Both include your EIN and registered agent for year one. Delaware offers [music] stronger legal protection. Wyoming has no franchise tax. For Italian residents, the tax treatment [music] is identical because Italy looks at your personal residency, not the LLC state.

Filing time is one to three days. [music] You get your formation certificate, operating agreement, and EIN letter in your registered [music] agent dashboard immediately. Step two, register the [music] LLC with your Italian Commercialista within 90 days of formation. This is important.

[music] Bring your apostille certificate of formation and your EIN confirmation letter. Your Commercialista [music] files Quadro RW on your next Modello Redditi. The LLC is taxed as [music] a transparent entity, so profits flow to your Italian return. You pay Irpef at your marginal rate, >> [music] >> typically 35% to 43% depending on income.

You avoid the 24% IRES corporate tax [music] an Italian SRL would trigger. You control when to distribute profits and therefore when INPS contributions [music] apply. Here's the problem most Italian founders face. >> [music] >> They form the Italian SRL because it feels safer.

They pay 3,500 euros in notary and registration [music] fees up front. Then they hit 22,320 euros per year in INPS contributions [music] on just 80,000 euros of distributed profit. Compare that to a US LLC formed through Bastion Formations for $349. >> [music] >> Same revenue.

No corporate tax layer. You decide when to take distributions and trigger INPS. [music] The SRL locks you into fixed costs from day one. Advanced move for 2026.

[music] If you plan to raise venture capital or bring on US partners, form a Delaware LLC then elect S corp tax [music] status after 12 months. This keeps the transparent structure for Italy but gives you payroll flexibility in the US. You'll need an Italian US tax treaty position letter from your commercialista. Bastion Formations can connect you with cross-border accountants who handle both filings.

The exact wording you need in your Italian tax [music] filing is this. Report the LLC as societa estera a rilevanza fiscale trasparente ai sensi dell'articolo 73 del TUIR. That [music] the Agenzia delle Entrate you're treating it as a pass-through entity. Without that language you risk [music] being taxed as a foreign corporation which destroys the entire benefit.

>> [music] >> Copy that phrase. Give it to your commercialista. It saves you 8,000 [music] euro plus per year. Societa estera a rilevanza fiscale trasparente ai sensi dell'articolo 73 del TUIR.

US LLC [music] avoids 24% IRS corporate tax layer. Delaware formation costs $349. Done in 3 days. File quadro RW within 90 days or face [music] penalties.

If this helps, smash like, hit subscribe, and visit bastion formations for your Delaware or Wyoming LLC today. Visit HTDS. com.