1 October 20263 min read
For US founders serving EU clients, a Bulgarian EOOD offers 10% corporate tax, 5% dividends, and EU market access. Full comparison with a US LLC, including CFC rules and FEIE interactions.
If you are a US founder with clients in Europe, you have probably felt the friction: invoicing EU companies from a US LLC, dealing with withholding questions, and paying US tax on worldwide income no matter where you live. A Bulgarian EOOD (single-member limited liability company) is one of the lowest-cost EU entry points: 10% flat corporate tax, 5% dividend withholding, and full EU market access.
| US LLC (single member) | Bulgaria EOOD | |
|---|---|---|
| Corporate tax | Pass-through at personal rates up to 37% (or 21% if C-corp) | 10% flat |
| Dividend tax | Qualified dividends 0-20% + 3.8% NIIT | 5% withholding |
| State fees | $50-$500/year depending on state | ~EUR 100/year total compliance basics |
| EU VAT number | No | Yes, EUR 166,000 threshold, VIES included |
| Setup cost | $0-$800 DIY | EUR 399 all-in with us |
| Setup time | 1-14 days | 3-7 business days, fully remote |
US LLC (pass-through, living abroad, FEIE applied): FEIE excludes roughly USD 130,000 of earned income in 2026, but self-employment tax of 15.3% still applies on net earnings, and income above the exclusion is taxed at marginal rates. Effective burden commonly lands between 18% and 30%.
Bulgaria EOOD: 10% corporate tax = EUR 15,000. Distribute the remaining EUR 135,000 at 5% = EUR 6,750. Total EUR 21,750, an effective rate of 14.5%.
This is the section that matters most. Unlike Europeans, Americans cannot simply move their company offshore and stop paying US tax:
Bulgaria makes the most sense for Americans who actually live in Europe (or plan to), serve EU clients, and want a real EU operating base rather than a paper entity.
A Bulgarian EOOD gets a Bulgarian IBAN, SEPA transfers, and access to EU payment processors like Stripe and Paddle at EU rates. For US founders selling software or services to European customers, this alone often justifies the setup.
No. The entire registration runs remotely with a notarized power of attorney. Banking can also be opened remotely with most neo-banks, and some traditional banks accept video identification.
Potentially, through CFC/GILTI rules. With proper structuring (salary plus retained earnings) and a cross-border accountant, most founders manage this cleanly. Budget USD 1,500-3,000/year for US international tax filings.
Yes. Many founders keep the US LLC for US clients and route EU business through the EOOD.
For an American founder living in Europe or serving mostly EU clients, a Bulgarian EOOD at a 14.5% all-in rate beats a US pass-through LLC on tax, and gives you an EU VAT number, EU banking, and EU credibility. The trade-off is US reporting complexity, which a good cross-border CPA handles.
Ready to compare your exact numbers? Try our tax calculator, read the Bulgaria company registration guide, or book a free consultation.
We've helped 750+ EU founders. Setup in 5 business days, fully remote, English throughout.
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