Bulgaria vs US LLC
For a non-US resident, a US LLC can be a light, cheap invoicing vehicle, but it is not a company that lets you live in the EU or removes tax at home. Bulgaria is a real EU base. Here is the honest comparison.
The short version
Bulgaria
An EU base you can move to
Best for
People who want an EU company, a real place to live, and a low, treaty-covered tax base.
US LLC
A light US invoicing vehicle
Best for
Non-US founders who want cheap, fast US formation to invoice US clients and are taxed where they live.
Tax and substance
| Feature | Bulgaria | US LLC |
|---|---|---|
| Company-level tax | 10% corporate | 0% US federal if no US presence (pass-through) |
| Where the profit is really taxed | Bulgaria, if you move | Your country of residence |
| Gives you EU substance and a place to live | ||
| Treaty network you can rely on | EU member | Varies, often none for your case |
Cost and setup
| Feature | Bulgaria | US LLC |
|---|---|---|
| Formation | EUR 400 to 900 service | USD 200 to 500 via a service |
| Ongoing | Accounting EUR 125 to 325 per month | Registered agent plus filings |
| Setup speed | 1 to 3 days e-filed | Days |
Banking and reality
| Feature | Bulgaria | US LLC |
|---|---|---|
| Business banking as a non-resident | Local account plus fintech | Fintech (Mercury, Wise) |
| Compliance burden for a foreigner | Local accountant handles it | US info returns, e.g. 5472, easy to get wrong |
| Euro and Schengen access |
Strengths at a glance
Bulgaria
- It is an EU company you can relocate to, not just a vehicle to invoice through.
- Clear, treaty-covered 10% base once you are resident, instead of profit taxed back home.
- A local accountant carries compliance, versus US information returns that carry steep penalties if botched.
Which should you choose
Choose Bulgaria if
- You want an EU base and the option to actually live somewhere low-tax.
- You will pay yourself and want a stable, treaty-backed 10% rather than profit taxed at home.
- You would rather an accountant handled compliance than file US returns yourself.
Frequently asked questions
Does a US LLC mean I pay no tax?
No. A foreign-owned single-member LLC with no US presence usually pays no US federal income tax, but the profit is still taxable where you live. The 0% is only the US layer. A Bulgarian company plus actually moving is what changes your personal rate; see the tax guide.
Can a US LLC let me live in the EU?
No. A US LLC gives you no residence rights anywhere. If you want to live in the EU on a low tax base, that is a relocation question; start with move to Bulgaria.
Which is cheaper to run?
A US LLC is cheaper to form and can be cheaper to maintain if you keep it simple. Bulgaria costs more in monthly accounting but gives you an EU base and a place to be resident. Compare your setup in the company cost calculator.
What are the compliance traps with a US LLC?
Foreign-owned LLCs must file US information returns such as Form 5472, and missing them carries large penalties. It is manageable but easy to get wrong from abroad. A Bulgarian EOOD's filings are handled by a local accountant.
Can I use both?
Some people do, invoicing through a US LLC while resident in Bulgaria on a Bulgarian company. That is exactly the kind of case worth a professional look; tell us the details on get started.
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Last reviewed July 23, 2026