Collective LLCs to reduce taxes and liability, would this work?

[Flycatcher]

Imagine you have either two of these problems:

• You want to establish an offshore company, but you do not have anyone else and thus the central management of the company is done from your country. You'll pay the tax.
• You want to establish an LLC because of its maximum liability protection, but the jurisdiction you have chosen requires a minimum of 2 directors/shareholders. You thus cannot proceed.

After @Talyn commented on the difficulty in avoiding taxes, I got the following idea:

Teaming up with other offshore enthusiasts to form an LLC together.

I could think of the following advantages:

• Lower establishing fees. Like $1800 suddenly becomes $600 if there are three people involved.
• The possibility to open a minimum two-person LLC (e.g. Scotland)
• And without any guarantees from me, the possibility of the company to really be "international" with a scattered central management, which would provide a getaway from taxes.

Would something like this work?

This has some risks though. The co-founders would really need to trust each other. The time the business gets involved in online gambling etc. There will be major privacy and liability concerns. The LLC will also need to be setup properly and there must be very clear rules on how the income gets shared.

 

[crownblown]

This is interesting and a interesting way to think! If the tax office check the partners in the LLC and can request information about them because they are real person it may be difficult to say this is not a true setup!