Question Best Offshore LLC for Individual Day traders in Forex, Stocks and Cryptocurrency?

[Dark Archer]

Best Offshore LLC for Individual Day traders in Forex, Stocks and Cryptocurrency?

 

[Dark Archer]

Does anybody have any ideas? i was thinking of setting up my LLC in St Vincent as theres 0% corporation tax and dividends but how will this reflect being a U.K citzen, they have tax treaty with United Kingdom.

 

[Sols]

The question is hard to answer because it depends on additional context and interest.

But if I can infer that you live in the UK, you have to pay UK tax no matter what you do. So you can form an LLC anywhere. It's equally pointless, in terms of reducing tax burden.

To actually save on tax in a manner that won't have HMRC drag you before court and you ending up with massive penalties or even prison time in the future, you have to relocate to a low-tax jurisdiction.

If you plan to pay full UK tax on all your profits (just as if you were investing personally or through a UK company), and reputability and ease of banking are the key aspects being considered, I'd say Cook Islands, Cayman Islands, or Nevis. SVG has a terrible reputation due to unlicensed forex brokers abusing the poor little island nation. US LLCs should be fine but the US connection makes them toxic to a lot of financial institutions.

 

[Dark Archer]

The question is hard to answer because it depends on additional context and interest.

But if I can infer that you live in the UK, you have to pay UK tax no matter what you do. So you can form an LLC anywhere. It's equally pointless, in terms of reducing tax burden.

To actually save on tax in a manner that won't have HMRC drag you before court and you ending up with massive penalties or even prison time in the future, you have to relocate to a low-tax jurisdiction.

If you plan to pay full UK tax on all your profits (just as if you were investing personally or through a UK company), and reputability and ease of banking are the key aspects being considered, I'd say Cook Islands, Cayman Islands, or Nevis. SVG has a terrible reputation due to unlicensed forex brokers abusing the poor little island nation. US LLCs should be fine but the US connection makes them toxic to a lot of financial institutions.

Thank you for your reply, i heard a lot about forex brokers abusing SVG but i don't how much it will affect me getting a business bank account. I will look more into the Cayman Islands. Thanks

 

[tradingworldwide321]

#1 There's no BEST OFFSHORE Jurisdiction for you because it depends on your tax residency, citizenship, monthly turnover, banks' jurisdictions, brokers' jurisdictions and your business goals.

You want a jurisdiction that provides strong privacy? Nevis
You want a transactional bank account for your Nevis company with top tier 1 banks in USA or UK? Forget it, UNLESS you come with MINIMUM 1 Million USD, BUT you BETTER 5 Million EVERY MONTH.
You want an Investment Business Account (Wealth Management) for your Nevis company with top tier 1 banks in USA or UK? Yes very possible. At Least 1 Million MONTHLY.

Here at offshore jurisdictions AND Transactional High Street Banks we play big.

Now let's talk about the broker's jurisdictions...
You want a solid broker? Saxo bank BUT... you may need to speak many times with the most importante people there to make it work for your Nevis company because... they don't like Offshore, unless you're smart and going to help them make money. Now Swear your nevis is not going to be blacklisted by EU because you saxo broker is licensed in EU, if it happens, you better say Good bye to your trading account... because that jurisdiction is blacklisted.
We don't know what may happen at future.

Now let's talk about your business plans?
What do you want to do with your millions? Store them like a pension plan? Invest them in Real Estate like Annaly?
BUY GOLD and hold for years? BUY Crypto and hold for years? Buy stocks and hold for years?
You need to structure it very well because for these options there are many interestings plans.

My input for you is:
1. Research and THEN ask, How to reduce Tax burden for ABCD TAX resident ? How to optimise Tax Obligation for ABCD tax residents?
2. Research your LOCAL LAW and read WHAT THEY TAX, HOW THEY TAX and then try to figure out things that is not within the LAW.
After you have basic info for number 1 and 2, then
3. Research the most used jurisdictions according to the answers provided for number 1 and 2 and what's their relationship with offshore and onshore.
4. Have a good plan as I wrote at the beggining and finally
5. Make a consultation with Local Tax Lawyer and International Tax Lawyer in YOUR Industry for your TAX residency and FOR your Goals.

There are many information you have not provided so don't expect here amazing answers.

All the best.

 

[Dark Archer]

#1 There's no BEST OFFSHORE Jurisdiction for you because it depends on your tax residency, citizenship, monthly turnover, banks' jurisdictions, brokers' jurisdictions and your business goals.

You want a jurisdiction that provides strong privacy? Nevis
You want a transactional bank account for your Nevis company with top tier 1 banks in USA or UK? Forget it, UNLESS you come with MINIMUM 1 Million USD, BUT you BETTER 5 Million EVERY MONTH.
You want an Investment Business Account (Wealth Management) for your Nevis company with top tier 1 banks in USA or UK? Yes very possible. At Least 1 Million MONTHLY.

Here at offshore jurisdictions AND Transactional High Street Banks we play big.

Now let's talk about the broker's jurisdictions...
You want a solid broker? Saxo bank BUT... you may need to speak many times with the most importante people there to make it work for your Nevis company because... they don't like Offshore, unless you're smart and going to help them make money. Now Swear your nevis is not going to be blacklisted by EU because you saxo broker is licensed in EU, if it happens, you better say Good bye to your trading account... because that jurisdiction is blacklisted.
We don't know what may happen at future.

Now let's talk about your business plans?
What do you want to do with your millions? Store them like a pension plan? Invest them in Real Estate like Annaly?
BUY GOLD and hold for years? BUY Crypto and hold for years? Buy stocks and hold for years?
You need to structure it very well because for these options there are many interestings plans.

My input for you is:
1. Research and THEN ask, How to reduce Tax burden for ABCD TAX resident ? How to optimise Tax Obligation for ABCD tax residents?
2. Research your LOCAL LAW and read WHAT THEY TAX, HOW THEY TAX and then try to figure out things that is not within the LAW.
After you have basic info for number 1 and 2, then
3. Research the most used jurisdictions according to the answers provided for number 1 and 2 and what's their relationship with offshore and onshore.
4. Have a good plan as I wrote at the beggining and finally
5. Make a consultation with Local Tax Lawyer and International Tax Lawyer in YOUR Industry for your TAX residency and FOR your Goals.

There are many information you have not provided so don't expect here amazing answers.

All the best.

I am planning to invest in crypto for the longterm and buy physical Gold and Farm Land. At this time i trade for a institutional company in the USA who pays me a percentage as well as my own accounts.

I think the best way, like you said is to make consulation with a Tax Lawyer and International Tax Lawyer. I think Satchel bank accepts LLC crypto/forex and stock traders, i'll have to do some more digging.

My Tax tax residency needs to change for sure.

Thank you

 

[tradingworldwide321]

I am planning to invest in crypto for the longterm and buy physical Gold and Farm Land. At this time i trade for a institutional company in the USA who pays me a percentage as well as my own accounts.

I think the best way, like you said is to make consulation with a Tax Lawyer and International Tax Lawyer. I think Satchel bank accepts LLC crypto/forex and stock traders, i'll have to do some more digging.

My Tax tax residency needs to change for sure.

Thank you

Now we have a different situation.
First you get income by comissions trading 3rd party funds.
Second, you get income from your personal trading accounts.

Although all income comes from trading, for banking it's different because in the first activity you are trading 3rd party funds and if you don't have a license your bank will refuse your application that's why you need an advanced lawyer on this specific situation to arrange some way to receive your funds from trading 3rd party funds. By default your application gets deny.

Now you mention Satchel EMI, They are EU EMI and Trading is high risk business for them and you could try to open a business account but you should know where is located the business brokerage bank account why? Because EU EMI doesn't allow payments from Non-EU brokers, and this includes USA for sure.

IF the broker is licensed in USA, I THINK the most suitable jurisdictions in terms of banking would be Delaware, Wyoming, Nevada and South Dakota. I am talking about the first income and about the second should be the same if the broker is licensed in USA.

However, you should check for consultation because this is not easy, it should be done very carefully.

However, by doing this it doesn't mean you're tax exempt because there are other aspects to consider too so you can research and ask: What are my tax obligations if I hold a foreign company in X jurisdiction as a ABCD tax resident? and how do they tax it and how much?

All the best.

 

[startfleetio]

It's possible to get a US LLC for opening brokerage accounts. Granted, some brokers usually require proof of address, but that can be solved. There are also banks willing to open bank accounts remotely for US LLC trading stocks.

 

[uplana]

@startfleetio each time I see your signature I would like to block it.. disturbing animated gif!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[startfleetio]

LOL. point taken. I made it a lot smaller

@startfleetio each time I see your signature I would like to block it.. disturbing animated gif!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[leaveNet]

LOL. point taken. I made it a lot smaller

thank you.

it's catchy, I hate it, it probably works

 

[startfleetio]

thank you.

it's catchy, I hate it, it probably works

i thought everyone likes borat

 

[pgalore]

Best Offshore LLC for Individual Day traders in Forex, Stocks and Cryptocurrency?

I'm doing some research for forex (day trading) and stocks (long-term).
What I've learnt so far (as a non-US citizen/resident):
1. Setting up an IBC in a tax haven jurisdiction is useless in 2022 because licensed brokers (incl. IBKR) don't accept an IBC anymore but also because of CRS in which many tax haven countries now participate
2. If you set up a LLC in Wyoming just to trade stocks and currencies from your home country, in theory any profit is taxable in your home country as the owner of the LLC. However, the US does not participate in CRS and FATCA is not really reciprocal. In other words, the US won't disclose your details to the tax authority in your country, meaning you could get away with not paying capital gain taxes. Hence, the US is often labelled as a tax haven. The only caveat is that your choice of licensed brokers will be limited because the US entity is not accepted by many.
3. Ideally, you relocate to a tax haven such as Monaco, Panama, Singapore, Switzerland. This is easier said than done, but is my goal.

Finally, this is my personal interpretation of what I've read on the Internet, so I could be wrong.

 

[troubled soul]

3. Ideally, you relocate to a tax haven such as Monaco, Panama, Singapore, Switzerland. This is easier said than done

Can not agree more,
In 2022 It is better to move to tax free country. Rather doing "Offshore LLC" Drama.

 

[Walter Rowe]

UAE and a business with residency - that might be the easiest way of getting what you need

 

[pgalore]

UAE and a business with residency - that might be the easiest way of getting what you need

Yes, that's another option and better than US LLC to legally minimize tax, but you need to visit the UAE to open a bank account and also spend X number of days each year to maintain residency if I'm not mistaken.

 

[Walter Rowe]

Yes, that's another option and better than US LLC to legally minimize tax, but you need to visit the UAE to open a bank account and also spend X number of days each year to maintain residency if I'm not mistaken.

correct - you have to visit to open a bank account and have to go to the UAE 1 day ever 6 months (which is easy if you are transiting to another country as UAE is a big airline hub)