TaxFree Corp

09/14/2026

Why would a Latvian airline choose the United States for financial restructuring?

airBaltic has initiated a financial reorganization under Chapter 11 in the United States.

What makes this case especially interesting is not only the restructuring itself, but the choice of jurisdiction.

airBaltic is a Latvian company. Its core business is in Europe. Its operations are primarily European. Yet for a complex financial restructuring, it chose the U.S. legal system.

Why?

Because Chapter 11 is one of the most established and flexible restructuring tools in the world.

It allows a company to continue operating while working with creditors, restructuring debt, attracting new financing, and improving its capital structure.

This is exactly why U.S. jurisdiction is used not only by American companies, but also by international businesses.

For global companies, the United States offers several important advantages:

- a well-established and predictable restructuring framework;
- court protection while negotiations with creditors are ongoing;
- the ability to continue normal business operations;
- structured mechanisms for obtaining new financing;
- the possibility to deal with multiple creditor groups within one legal process;
- a system that is familiar to international banks, funds, investors, and advisers.

And importantly, a company does not necessarily have to move its entire business to the United States or become a U.S. company in order to benefit from certain U.S. legal mechanisms.

With the required legal connection to the U.S., foreign companies may also be able to use American restructuring procedures.

That is one of the reasons why the U.S. remains such a powerful jurisdiction for international business.

Many entrepreneurs still think of the United States mainly as a place to register an LLC or Corporation.

But the U.S. legal and business infrastructure goes much further.

It can be useful when raising investment, structuring ownership, working with international banks, protecting assets, planning cross-border operations, or, as the airBaltic case shows, restructuring significant debt for a company headquartered in another country.

U.S. jurisdiction is not only for U.S. businesses. It is part of the infrastructure of global business.

The airBaltic case is a good reminder that the right jurisdiction should not be chosen simply based on where it is cheaper or easier to register a company.

The better question is:

What opportunities will this jurisdiction give your business in 3, 5, or 10 years?

Our team has more than 15 years of experience in U.S. business consulting.

We assist entrepreneurs and international businesses with company formation and structuring, tax and corporate matters, banking solutions, and cross-border business models.

If you are considering the U.S. for your business and want to understand what structure may work best for your specific case, feel free to contact us.

We can review your situation and help identify the most suitable approach.

Business consultant

08/06/2026

🇺🇸 Can you open a company in the United States and legally pay 0% federal income tax?

Sounds too good to be true?

In some cases, it is absolutely possible. But only if the business meets specific requirements.

One of the biggest mistakes entrepreneurs make is assuming that taxes depend only on the state or country where the company is registered.

That is not how the U.S. tax system works.

For a foreign-owned LLC, one of the key factors is where the income-generating activities are actually performed.

This tax structure may be available only when two essential conditions are met:

— the LLC has a single owner;
— the company is classified by the IRS as a disregarded entity for federal tax purposes.

For example, if you:

✔️ live outside the United States;
✔️ provide services remotely;
✔️ do not perform work while physically present in the United States;
✔️ do not have a U.S. office or employees;

then, depending on your business structure and circumstances, your income may not be subject to U.S. federal income tax.

However, there is one important detail that many business owners overlook.

0% tax does not mean zero reporting obligations.

Even when no federal income tax is due, the company may still be required to:

• file reports and informational returns with the IRS;
• submit Form 5472 together with a pro forma Form 1120, when required for its structure;
• pay annual state fees;
• comply with banking requirements;
• maintain proper corporate records;
• file all required forms on time.

This is why many entrepreneurs are surprised when they receive penalties even though their company did not owe any tax.

For example, the penalty for failing to file certain required informational returns may start at $25,000, even if the company had no business activity, generated no income, and completed no transactions.

The tax situation may also change if you:

— move to the United States;
— open a U.S. office;
— hire employees;
— begin performing work from within the United States;
— use warehouses located in the United States;
— receive certain types of U.S.-source income.

That is why promises such as “We will register an LLC with 0% tax” should raise concerns when they are made without first reviewing your specific circumstances.

Before registering a company, it is important to answer a few key questions:

📍 Where does the owner live?
📍 Where is the work physically performed?
📍 Where does the income come from?
📍 Is there any actual business activity in the United States?
📍 Which business structure is appropriate for your situation?

The answers determine not only how much tax you may owe, but also your reporting requirements, legal obligations, and potential risks.

At TaxFreeCorp, we first analyze your business model and only then recommend the appropriate solution. This helps you avoid costly mistakes, unexpected penalties, and uncertainty about the tax treatment you may actually qualify for.

📩 Planning to open a company in the United States? Message us on Telegram: https://t.me/TaxFreeCorp_bot?start=*g2_s1_r163*

We will review your situation, assess your potential tax obligations, and determine whether your business may legally qualify for 0% U.S. federal income tax.

03/13/2026

Business owners with LLC Partnerships in the US, attention!
There are exactly 2 working days left before the IRS filing deadline. 😳

Friends, yes — the US tax season is already in full swing, which means it’s time to get the reporting for your American companies in order. If you think the IRS is far away and will never reach your LLC (I can record a short video explaining how huge penalties are calculated for late filing of Form 1065) or your Corporation… believe me, IRS agents already have their calculators ready!

Do you need to file any reports?

If you have an LLC in the US (even without an office, warehouse, or employees), then yes, you do. This applies to all non-residents who own an LLC.

📌 If you are not doing a product business in the US, but for example provide services and have a Single-Member LLC, you still must file an information return. This is a mandatory requirement because the US is the jurisdiction where your company is registered.

📌 If you have a partnership (Multi-member LLC) and you are a non-resident of the US, or you have a Corporation (no matter where you are a tax resident), the annual report must be filed, even if the company had no activity. And the penalties: $220 for each month of delay and for each partner... 👀

Don’t agree? We are open to discussion and can easily prove that we are right!

Now let’s get to the point. What forms are required for non-US residents?

• Form 1120 + 5472 – mandatory for all non-resident owners of LLCs, even if the company earned nothing.
• Form 1040-NR – if your LLC had income and you are the sole owner of the company (and you will need an ITIN). By the way, our company Tax Free Corp can help you with that.
• You will also need a Profit & Loss Statement (P&L). The IRS does not require it directly, but it helps correctly complete the tax forms. And if you like understanding where your money goes, the IRS definitely wants to know that too!

Filing deadlines

📆 March 16, 2026
Form 1065 – for Multi-member LLC
Form 1120-S – for LLC taxed as S-Corp

📆 April 15, 2026
Form 1040 (residents) and 1040-NR (non-residents)
Form 1120 – for C-Corp and LLC taxed as C-Corp
Payment of taxes for 2025 (otherwise the IRS will get upset…)

You can also file an Extension Form to extend the deadline:

📆 Until September 15, 2026 – for Partnerships
📆 Until October 15, 2026 – for C-Corporations and Single-Member LLC

But remember: the IRS will still charge penalties and interest on unpaid taxes.

By the way, the IRS gives an automatic extension for non-US residents until June 15, 2026 (but we still recommend filing on time).

⚠️ What happens if you ignore it?

The IRS penalty can reach $25,000. And yes, this also applies to non-residents who own US companies that did not operate and earned zero income. The IRS does not like being ignored. And this is one department in the US you should not play games with... 🤷🏼‍♂️

📢 Don’t want to deal with all of this?

We will help you prepare all required forms, submit the reports to the US tax authorities on time, and save you a lot of stress (and money on penalties!).

⚙️ For all questions write to us in Telegram

And if doing monthly bookkeeping drives you crazy, our specialists — licensed CPAs with more than 10 years of experience — will handle it for you.

You can also download our free guide:
“US Taxes. Forms and filing deadlines for LLCs, Corporations, and individuals in 2026.”

See the comments.

02/11/2026

Do I need to collect and pay Sales Tax in the U.S. if I sell services?
That was the question that started today’s conversation with our client.
He had just issued his first invoice to a U.S. customer — and immediately asked: “What about Sales Tax?”
It may look like a simple formality.�But in reality, the answer is almost never just “yes” or “no.”
It depends on at least 5 factors — and very often, Sales Tax is not required at all.�Let’s break it down 👇
📌 What is Sales Tax (in the U.S.) and why is it not VAT (like in the EU)?
🇺🇸 The U.S. does not have VAT.�Instead, it has Sales Tax — and this is where things get interesting:
tax is set at the individual state level
the rules depend on the client’s state (where the customer is located), not where the seller’s company is registered
rates, exemptions, and tax logic vary from state to state
For example:
In Delaware, Oregon, New Hampshire, and Montana there is no Sales Tax at all — which means if your client is located in one of these states, Sales Tax is Zero, Nada, 0️⃣ — regardless of the type of service or even goods.
Many people make the mistake of thinking that if they register their company in one of these states, they won’t have to charge Sales Tax when selling nationwide. That is simply not true 🙂
In the other states — there are dozens of nuances.
🤘 So “always adding Sales Tax” — or never adding it — is not correct.
❌ Services that MOST OFTEN are not subject to Sales Tax:
business and strategic consulting
legal services
accounting and tax advisory
education, mentoring, educational products
medical and wellness services
financial and investment advisory
⚠️ But even if your service is on this list — that is not a 100% guarantee of exemption. Why? Let’s continue 👇
☝️ 5 key factors that determine whether Sales Tax applies:
1️⃣ The client’s state�Each state decides independently what is taxable.�New York has one set of rules, Florida another, Texas a third.
The same business may:�✔️ not owe tax in one state�❌ and be required to collect it in another
2️⃣ Type of service�Consulting ≠ platform access ≠ online course.
Some states treat automated online courses as digital products — and tax them.�Live training, however, may be exempt.
3️⃣ Nexus — tax presence�No office, employees, or warehouse in the client’s state?�🫸 Often Sales Tax is not required.
But if your revenue in that state exceeds a threshold (for example $100,000 or 200 transactions — depending on the state), Economic Nexus may arise (we’ve written about this on 👉 our website 👈), and you may be required to register and report Sales Tax in that state.
4️⃣ B2B or B2C�Working with businesses? Often no tax is required — especially if the client provides a resale certificate.
Working with individuals? The risk of having to collect, pay, and report Sales Tax is significantly higher.
5️⃣ Wording in the contract and invoice�Yes — this matters.
“Strategic consulting” and “access to an educational platform” may be treated as two completely different products for tax purposes.
🎯 Why is this critically important?
In the U.S., the responsibility for properly charging Sales Tax lies with the seller — not the client (and not even the seller’s accountant).
If you fail to charge tax when required:�👉 the state may demand payment from your own pocket�👉 plus penalties, interest, and of course stress
🧠 Bottom line: before issuing an invoice to a U.S. client, check 5 things:
✅ where the client is located�✅ what exactly you are selling�✅ whether you have Nexus in that state�✅ whether it’s B2B or B2C�✅ how the service is described in your documents
💬 If you’re unsure — don’t guess. With U.S. tax authorities, guesswork does not work.
Follow our channel if you want more practical insights about U.S. taxes, business, and money.
And if you need help with your specific U.S. tax case — message us in 👉 Telegram (see link in comments) 👈 and we’ll guide you properly 👌

01/21/2026

What is Form 1099-MISC or 1099-NEC?
It’s a form a business files at the end of the year for each contractor (not an employee) who was paid $600 or more for services.
The form is sent to:
* the contractor
* the IRS
⏳ Deadline: January 31.�Late filing = penalties.

When are you required to file a 1099?
All five conditions below must be true:
1. You are a U.S. business (LLC, Inc, or Sole Proprietor)
2. You paid for services, not goods
3. The recipient is a U.S. citizen or resident, a U.S. lawyer, or a U.S. LLC
4. Total payments to that contractor during the year were $600 or more
5. You did not pay via PayPal, Stripe, or card — payment was made directly (Zelle, ACH, check, wire, cash)
If all of this applies to you, you must file Form 1099-NEC.�It does not matter whether your business had income, profit, or losses. The IRS doesn’t care.

When is a 1099 not required?
* Employees (they get Form W-2)
* Foreign contractors (for example, from Ukraine, Armenia, Kazakhstan, etc.)
* Payments for goods (not services)
* Payments made via payment processors (Stripe, PayPal, cards — they report themselves)
* U.S. corporations (Inc), except law firms

About Form W-9: don’t forget it
To file a 1099 correctly, you must collect a signed Form W-9 from the contractor — ideally before paying them (this is how Amazon, Walmart, and other large U.S. companies do it).
Think of it as the contractor’s ID: name, address, and Tax ID.�They fill it out and sign it — you just keep it on file as proof for the IRS.

Worked with U.S. contractors in 2025?
Message us on 👉🏼 Telegram (see link in comments) 👈🏼 and we’ll help you handle the entire 1099 process calmly and correctly — checking everything and filing on time, without stress.
Choose TaxFreeCorp.com — so tax season is fast, smooth, and penalty-free.

12/30/2025

Opening a bank account in the US has become a real quest. We know how to pass it on the first try.

What could be done “in a couple of clicks” just a few years ago now requires a clear strategy.
US banks have tightened account opening rules — especially for non-residents (this has been common in the EU for a long time).

Now it’s not enough to just have a company on paper. You must prove that there is a real, active business behind it.
Banks no longer take your word for it — they want to see real activity: a website, clients, transactions, and an online presence.

💡 What has changed — and why preparation is now essential:

1️⃣ Strict identification.
Forget about opening an account with just a passport.
Banks now require two or more IDs, proof of address, video verification, and extended KYC forms.
Each step is a mini compliance check, and mistakes are not tolerated.

2️⃣ Proof of business activity.
A website, social media, contracts, real cases, or at least a clear business plan are strong advantages.
Banks look for signs of “real life”: activity, clients, mentions, and content.
Without this, applications are often left unanswered.

3️⃣ Special focus on foreign owners.
LLCs and C-Corps with non-resident owners are reviewed very carefully.
Banks usually request the EIN, Operating Agreement, ownership structure, and business description.
Any inconsistency greatly increases the risk of rejection.

4️⃣ Longer timelines — and that’s normal.
Review times of 2–4 weeks are now standard.
This is not a rejection — banks are simply doing deeper checks.

5️⃣ Every bank or payment system is different.
Some have extremely strict filters, while others are still open to cooperation.
The key is knowing where and how to apply.

💼 Opening a corporate bank account in the US or the EU is still possible.
But today it’s not a formality — it’s a process that requires preparation, logic, and transparency.
If your business is presented correctly, approval chances are very high.

🚀 The TaxFreeCorp team helps you go through this process without stress:
✅ remove “red flags” in your company structure;
✅ prepare and organize the full document package;
✅ build strong proof of business activity;
✅ prepare you for the bank video call;
✅ select the best bank for your specific case.

📍 Want to open a US or EU bank account without rejections, bureaucracy, or stress?

Book a consultation via our Telegram (link in the comments). We’ll review your case and handle everything turnkey.

At TaxFreeCorp, we know how to pass bank compliance on the first try.

12/24/2025

🚀 Tax season is literally knocking on the door!
Tax filings open on January 1 — and the IRS is already at the starting line!

This means the IRS (the U.S. Internal Revenue Service) will begin accepting reports for the 2025 tax year in just a matter of days.

If you feel like there’s still plenty of time — spoiler alert: the IRS doesn’t agree.
They remember missed deadlines better than their own holidays.
And trust us, they remind you of them in a very… convincing way 💸

From experience, calculators, reports, and Excel spreadsheets should have been taken out back in the first quarter of the outgoing year. But if you didn’t — it’s still better to start now than “someday later.”

🧾 Who is required to file with the IRS?

If you are a non-U.S. resident and own an LLC or a Corporation, filing is mandatory in all cases.

Income or no income? Active business or completely dormant? — you still must file.

Company structure doesn’t matter: LLC, C-Corp, or S-Corp — no exceptions.

❗️Failure to file results in penalties — and they are far from symbolic.

🧩 Breaking it down by company type:

Single-Member LLC (owned by a nonresident) — must file an informational return, even if there was no business activity.

Multi-Member LLCs and Corporations (C & S) — filing is mandatory for everyone, no exceptions, even if you are a U.S. tax resident.

📌 Forms you may need:

Form 1120 + 5472 — for LLCs with nonresident owners and no income*

Form 1040NR — if there was income and you are the sole owner of an LLC. An ITIN is required for filing (this is a nonresident tax ID — not to be confused with an EIN).

P&L (Profit & Loss Statement) — a key document without which a CPA (Certified Public Accountant) cannot properly prepare your tax return.

P&L (Profit & Loss Statement) is your financial “X-ray.” It shows how much you earned, how much you spent, and what your actual profit was.

Without a proper P&L, errors, overpayments, and penalties are very possible.
And the IRS loves numbers — but absolutely hates mistakes in numbers 😉

🕒 Key deadlines for the 2025 tax year:

(Filing opens January 1, 2026)

📅 By March 15, 2026 (effectively March 16, since the 15th falls on a Sunday)

Multi-Member LLCs (Form 1065) and S-Corps

📅 By April 15, 2026

Forms 1040 / 1040NR, 1120, and C-Corps

If you have a corporation or an LLC (and already have an ITIN), you can file for an extension. However, penalties for unpaid taxes still apply — an extension is not a magic pill.

⚠️ What happens if a non-U.S. resident doesn’t file?

IRS penalties can reach up to $25,000, even if the company never operated for a single day.
The IRS doesn’t like silence.
They like forms, reports, deadlines… and yes — your money 😉

💼 Important: our team includes certified CPAs who handle the entire process for you.

We deal with these tasks every day and provide turnkey solutions, so you don’t waste time on bureaucracy or risk costly penalties:

ITIN application without sending original documents — our CPAs are also CAA (Certifying Acceptance Agents). Identity verification is done remotely with our specialist, and your original documents never leave your hands or go to the U.S.

Preparation of an accurate P&L — clean, compliant, and ready for filing, with no errors, overpayments, or business risks.

Collection and filing of all required forms with the IRS and the State Department of Revenue (if applicable). We know exactly what to file, where, when, and how.

Monthly bookkeeping, so you don’t lose money on small mistakes and can focus on what truly generates profit — your business.

✅ Want to get through tax season calmly and without penalties?
Message us on Telegram 👉🏼 https://t.me/TaxFreeCorp_bot?start=_g2_s64_r112_👈🏼.
We’ll save you time, nerves, and money.

P.S. If you’d like a handy checklist with all IRS filing deadlines, form names, and useful tips — just send us the keyword “IRS Deadline” on Facebook (Tax Free Corp) or 👉🏼 Telegram (https://t.me/TaxFreeCorp_bot?start=_g2_s64_r112_) 👈🏼.

We’ll send you a clear, easy-to-use checklist so you don’t miss anything and are fully prepared for the season.

12/05/2025

🇱🇹 How to Start a Business in the EU in 2025: Lithuania

We’ve already covered Estonia (remote registration and 0% tax on retained earnings) and Poland (Amazon logistics + 9% CIT).
Today — Lithuania: low entry requirements, a clear tax system, and great conditions for small businesses, freelancers, and digital projects.

If you want to launch a company quickly, with minimal bureaucracy and low costs, Lithuania might be the right choice.

🇱🇹 Why Lithuania?

Lithuania is part of the EU and the eurozone, but it offers very flexible conditions for small businesses and registration by power of attorney.

It’s one of the few countries where you can:
— open a company with share capital starting from €1,000;
— delegate the entire registration process to lawyers;
— legally pay only 5% corporate tax.

🏢 Company Registration: Fast, Remote, Simple

Can you open a company remotely?
✅ Yes. The process goes through a notary via power of attorney. You don’t need to be physically present.

📋 How registration works:
• Choose the type: UAB (similar to an LLC)
• Share capital from €1,000 (you can deposit it later)
• Sign the incorporation documents via power of attorney
• Company registration takes 3–5 business days
• Open a fintech bank account (Revolut, Paysera, Intergiro)
• VAT required once revenue reaches €45,000 per year
• Hire an accountant — reporting is done online

📊 Taxes in Lithuania

• 5% corporate tax if:
▪️ annual revenue is under €300,000
▪️ ≤10 employees
▪️ the sole founder does not own other companies in the EU

• 15% — standard rate if you don’t qualify as a small business
• VAT — 21%
• Simplified reporting if you are not registered for VAT

Lithuania genuinely supports microbusinesses and doesn’t pressure new companies with high taxes.

🛒 Lithuania and Amazon — What’s Possible?

Even though the country is small, a Lithuanian company can fully work with Amazon.

📦 You can:
— Connect to Amazon EU Seller Central
— Use FBA (with warehouses in other EU countries)
— Register for VAT and OSS
— Obtain an EORI number for international trade
— Use fintech accounts (including Payoneer) — they work with Seller Central

Amazon treats Lithuanian companies as full EU businesses — no restrictions based on nationality or residence.

✅ Lithuania is a great choice for:
— Freelancers and microbusinesses
— Online agencies
— SaaS and developers
— Marketplace sellers
— Anyone looking for low taxes and simple reporting

📲 Want to register a company in Lithuania and work in the EU without complications?
TaxFreeCorp can help: we prepare documents, issue the power of attorney, open the bank account, register VAT/OSS, and handle accounting.

11/19/2025

🇵🇱 How to Open a Business in the EU in 2025: Poland

In the previous post, we talked about Estonia — a perfect country for digital business, freelancers, and SaaS.
Today — let’s look at Poland.
If your focus is products, warehouses, Amazon, or physical logistics, Poland gives you everything you need: access to Amazon FBA, a clear tax system, and the ability to register a company without traveling to the country.
Let’s break it down 👇

🇵🇱 Why Poland?
Poland is one of the largest markets in Central Europe.
It’s a great choice if you:
— work in e-commerce
— sell physical products
— want to use Amazon warehouses
— need low corporate tax and predictable reporting

🏢 Can you register a company remotely?
✅ Yes, there are two options:
Through the Polish consulate — you submit documents in person, without visiting Poland.

By power of attorney — a representative completes the process for you.

💡 If you already have a PESEL (Polish tax number), the whole process can be done online with an e-signature.

✍️ What electronic signatures are used in Poland?
Podpis zaufany — trusted signature via ePUAP:
— free, good for government services
— not used for commercial contracts
Podpis kwalifikowany — qualified electronic signature:
— used for company registration, taxes, and contracts
— works through a USB key or smart card
— legally equivalent to a handwritten signature (eIDAS)

📋 Company Registration Process:
— Preparing the statute and power of attorney
— Submitting documents to the eKRS registry
— Opening a bank account (sometimes requires a visit)
— VAT becomes mandatory above 200,000 PLN (~€46,000)
— Accountant + legal address — required
⏱ Registration time: 1–3 weeks

10/29/2025

Live Stream Topic: Business Registration, Optimization, and Reporting for Amazon Sellers – Everything Beginners, Active Sellers, and Business Pros Need to Know.

📍Channel: MarketplaceGuru on YouTube: https://www.youtube.com/live/ZE-FamPCCJI?si=j4K1BWJUC43NRcVz

What to Expect in the Live Stream:
🔹 We’ll cover current tax nuances in the USA and Europe
🔹 Discuss key mistakes to avoid
🔹 Share practical tips for business optimization and protection

The live stream is completely free.
Join us, and most importantly, ask your questions in the chat – it will be both interesting and useful!