US LLC for German Points Collectors: Taxes, Risks & CFC Rules (2026)
A US LLC opens the door to business credit cards (Chase Ink, AMEX Business Platinum US) — but it has tax consequences in Germany. Complete 2026 overview: BOI/FinCEN reporting, German CFC taxation (Hinzurechnungsbesteuerung), CFC risk, mandatory own clarification. NOT tax advice — just a factual overview.
Status:
Quick answer: A US LLC (Limited Liability Company) gives German collectors access to business credit cards (Chase Ink Trifecta, AMEX Business Platinum US) — but it is not a tax-saving vehicle for DE-resident owners. Key 2026 tax facts: (1) BOI/FinCEN: Since the Interim Final Rule (FinCEN, 21 March 2025), LLCs formed in the US are exempt from Beneficial Ownership Information reporting — even if the owner is German. An LLC formed in Wyoming or Florida is US-formed and therefore EXEMPT. Only foreign-formed entities are reporting companies (e.g. a German GmbH that additionally registers in a US state). (2) German CFC taxation (Hinzurechnungsbesteuerung): A single-member LLC with a DE-resident owner is treated in Germany as a permanent establishment — profits are taxed in Germany. (3) CFC rules: A multi-member LLC with passive income may trigger CFC status (Hinzurechnung). Clarify your own tax situation on your own responsibility BEFORE the Sunbiz filing. This article is not tax advice — it’s a factual overview.
US LLCs are often touted in the German points-collecting hobby as the gateway to the business-card world. What’s rarely explained: a US LLC for DE-resident owners can become tax-wise complicated — and expensive without proper advice.
WARNING: This article is not tax advice. Clarify your own tax situation on your own responsibility — no tax or legal advice from us. The wrong structures can lead to double taxation, CFC surprises, or penalties.
Why an LLC interests points collectors
| Card | Requirement | Welcome bonus 2026 |
|---|---|---|
| AMEX Business Platinum US | EIN number (LLC required) | up to 300,000 MR |
| AMEX Business Gold US | EIN number | up to 200,000 MR |
| Chase Ink Business Preferred | EIN number | 90-120k UR |
| Chase Ink Business Cash | EIN number | $750 cashback |
| Chase Ink Business Unlimited | EIN number | $750 cashback |
| Capital One Spark Business | EIN number | 200k Miles |
→ With 5 business cards, a US LLC owner picks up 750,000+ MR/UR welcome bonuses — without raising 5/24 (business cards don’t count). A huge advantage.
The question: Is the tax effort in Germany worth it for this advantage?
What LLC structures exist
| Structure | US tax classification |
|---|---|
| Single-member LLC | ”Disregarded Entity” — no separate US tax obligation; owner taxed personally |
| Multi-member LLC | Partnership by default — Form 1065 required |
| LLC with S-Corp election | S-Corporation (US-resident requirement!) — not for Germans |
| LLC with C-Corp election | C-Corporation — separate tax (21% federal) |
Standard for German collectors: single-member LLC (Disregarded Entity) — simplest, but tax complications for DE residents.
BOI/FinCEN reporting obligation 2026
Interim Final Rule (21 March 2025): US-formed LLCs exempt
Since FinCEN’s Interim Final Rule (announced by the Treasury on 2 March 2025, Press Release 21 March 2025, Federal Register 26 March 2025), all companies formed in the US are exempt from Beneficial Ownership Information reporting — regardless of whether the owner is a US citizen or a foreigner. So a US-formed LLC with a German owner is EXEMPT.
What remains reportable?
Reporting companies are now only foreign-formed entities: companies that were formed outside the US and additionally register with a US Secretary of State (e.g. a German GmbH that registers in a US state as a foreign entity).
→ In practice for German collectors: anyone who forms an LLC in Wyoming, Florida, or Delaware has a US-formed company → no BOI reporting obligation. It doesn’t matter that you, the owner, live in Germany — what matters is the place of formation of the company, not the owner’s residence.
German CFC taxation (Hinzurechnungsbesteuerung)
What is Hinzurechnungsbesteuerung?
German tax rules (§§7-14 AStG) require that passive income of a foreign subsidiary company be taxed in Germany as if it were your own income when:
- A DE resident holds >50% of the company
- The company has passive income (interest, dividends, license fees)
- The foreign tax burden is <25% (in the US: 0% federal for a disregarded LLC, <25% in low-tax states)
→ With a single-member LLC and a DE-resident owner, the LLC is often treated as a “permanent establishment” — profits are directly taxable in Germany.
Practical impact
If your LLC only:
- Holds credit cards (no active income)
- Has a Mercury bank account (with interest)
- Does no real business
→ Then you probably have no significant passive income in the LLC. But: a points-collector setup is often classified by the tax office as an “empty vehicle,” which can lead to discussions.
If your LLC:
- Generates consulting income
- Makes online sales
- Holds US rental properties
→ Then the profits are clearly taxable in DE — and possibly in the US too (if US-source income).
When is an LLC worth it?
✅ Worth it
- You run a real US business (Stripe payments from the US, US customers, US rental properties)
- You’re planning a permanent stay abroad in the US (visa, green card)
- You’ve cleanly clarified your own tax situation
- You recognize the LLC as a card-stacking tool, not a tax-saving vehicle
❌ NOT worth it
- You’re looking to save taxes (an LLC is not a tax-saving vehicle for DE residents)
- You just want 3-5 business cards and have no real business income
- You ignore BOI/CFC taxation (can get expensive)
- You haven’t yet clarified your tax situation
What you need to run an LLC responsibly
| Item | Typical cost |
|---|---|
| LLC formation (Sunbiz filing in FL) | $125-200 |
| Registered Agent (required) | $50-150/year |
| EIN application (Form SS-4) | $0 (DIY) or $200 (service) |
| US bank account (Mercury, Wise USD account) | $0 |
| US address (mailbox/virtual office) | $120-1,200/year |
| US phone (Google Fi / Tello) | $50-300/year |
| Your own DE tax filing with LLC (on your own responsibility) | €500-2,000/year |
| US Form 5472 + 1120 mandatory filing (filing service or DIY) | $500-1,500/year |
| Realistic total cost, year 1 | ~€3,000-7,000 |
→ Anyone who wants to grab 750,000 MR/UR welcome bonuses through 5 business cards (cash value: $7,500-37,500 with optimal redemption) can amortize these costs. Anyone who just wants 1-2 business cards: not worth it.
Frequently asked questions (FAQ)
Do I need an LLC to get business cards?
Yes, an EIN number is required for most business credit cards. You only get an EIN with a US business entity (LLC, Corporation, Sole Proprietorship). Sole Proprietorship is also possible, but only gives an EIN for a single-person business.
Sole Proprietorship instead of LLC — does that work?
Yes, in theory. But: a Sole Proprietorship has no liability protection and is harder for US banking. For German collectors, the LLC is the clean path.
Which state is best for the LLC?
Wyoming, Delaware, Florida are the typical choices.
- Wyoming: cheap ($60/year), strong privacy
- Delaware: standard for many businesses, $300/year franchise tax
- Florida: $138/year, straightforward online formation via Sunbiz
What is Form 5472?
A US tax form for foreign-owned LLCs. Mandatory annual filing. Non-filing = $25,000+ penalty. Required for German single-member LLC owners.
Am I US tax-liable with an LLC?
With a single-member LLC (Disregarded Entity): you personally are tax-liable. Form 1040-NR required if you have US income. For a pure “card-holder” LLC (no income): a nil return is usually possible.
What happens if the DE tax office finds out about my LLC?
If your LLC has passive income or is treated as a permanent establishment, the profits are taxable in DE. For a pure “card-holder” LLC without income: usually unproblematic, but always clarify on your own responsibility — we give no tax or legal advice.
Can I close the LLC again later?
Yes, via a Sunbiz dissolution filing ($25 in FL). But: you must cancel or transfer all US cards beforehand. Accounts lapse, points are lost if not transferred first.
Does a US LLC help with US visas?
No, not directly. An LLC is not a visa. An “E-2 Investor Visa” could be an option for business people with a real US investment, but the requirements are high ($100k+ actively invested).
Conclusion: an LLC is a tool, not a miracle cure
A US LLC for German points collectors is:
- A powerful tool for 5+ business welcome bonuses
- But expensive (~€3,000-7,000 setup + annual costs)
- Tax-wise complex (CFC taxation, Form 5472 — BOI, on the other hand, exempt for US-formed LLCs)
- NOT a tax-saving vehicle for DE-resident owners
Recommended path:
- First Sprint (Global Transfer, no LLC) — 1-2 US AMEX cards
- Then Stack (ITIN, no LLC) — all AMEX Personal + Chase Sapphire
- Empire (LLC) only when:
- You’re targeting 5+ business cards
- You’ve cleanly clarified your own tax situation
- You’re planning real US business (Stripe, online sales, etc.)
The MEILENKÖNIG US Cards handbooks explain the complete LLC setup path in US Empire (€597) — including a tax disclaimer and notes on clarifying things on your own responsibility.
Further reading:
This article is not tax advice. Clarify your own tax situation on your own responsibility before any LLC filing — we give no tax or legal advice.
Your path to US credit cards — step by step
Welcome bonuses up to 175,000 MR, 1:1 transfer ratios, Chase & Capital One: the US handbooks show you the complete roadmap — from the US address to your first card. Without US residency, as a German.
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