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Can an IBC pay my bills, avoid dividend tax?

An LLC does not pay dividends. Dividends are paid to shareholders. There are no shareholders in LLCs. Instead, LLCs have members.

When it comes to an LLC, the normal term used is distribution. Funds distributed from an LLC to its members is considered personal income by default.

However, if you live in a jurisdiction which does not recognize LLCs and do not treat them as partnerships, the funds you withdraw may be considered dividends under local law where you live.

Since you don't live in the Cayman Islands, you need to consult with a local tax adviser whether funds distributed from an LLC are personal income or dividends.

If you actually do live in New Zealand, take a look at Look Through Companies, which are tax transparent very similar to LLCs.
 
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