Hi there,
I've been obsessing on this for days and I need some advice.
I am currently a self-employed US citizen operating an incorporated business here in the US. I provide software development services for a company in China, which uses PayPal to send me payments, which I in turn deposit into my business bank account here in the US. From that, I pay myself wages and distributions, file and pay all applicable taxes, etc.
What I would like to in the coming year is restructure my business in such a way that I can reduce the actual taxes due. My thought was to incorporate a new business offshore with an associated IBC, and then continue business in the same manner with a new business PayPal account. I would then pay myself a living wage ( and pay taxes on that ) and allow the rest of the business profits to accumulate and roll over year to year in the offshore company, in a zero tax jurisdiction. Ultimately I'd have to pay taxes on anything I took as income, but I want the flexibility in determining when I receive that income, as this should help keep me in a lower tax bracket.
Anyway.
The stumbling block is this: Everything I read says PayPal hates offshore companies and will make people jump through hoops sooner or later to provide documents and local addresses and all kinds of ballyhoo as justification to lock the account down. This is all kind of silly in the age of global e-commerce, but whatever. I have no brick-and-mortar business and I ought to be able to operate and manage it from anywhere I want.
Has anyone here ( that is a US citizen ) been able to setup a working business model using an offshore account in conjunction with PayPal? If so, what country did you incorporate in, and in what country did you open the banking account in?
Thanks!
- Mithra
I've been obsessing on this for days and I need some advice.
I am currently a self-employed US citizen operating an incorporated business here in the US. I provide software development services for a company in China, which uses PayPal to send me payments, which I in turn deposit into my business bank account here in the US. From that, I pay myself wages and distributions, file and pay all applicable taxes, etc.
What I would like to in the coming year is restructure my business in such a way that I can reduce the actual taxes due. My thought was to incorporate a new business offshore with an associated IBC, and then continue business in the same manner with a new business PayPal account. I would then pay myself a living wage ( and pay taxes on that ) and allow the rest of the business profits to accumulate and roll over year to year in the offshore company, in a zero tax jurisdiction. Ultimately I'd have to pay taxes on anything I took as income, but I want the flexibility in determining when I receive that income, as this should help keep me in a lower tax bracket.
Anyway.
The stumbling block is this: Everything I read says PayPal hates offshore companies and will make people jump through hoops sooner or later to provide documents and local addresses and all kinds of ballyhoo as justification to lock the account down. This is all kind of silly in the age of global e-commerce, but whatever. I have no brick-and-mortar business and I ought to be able to operate and manage it from anywhere I want.
Has anyone here ( that is a US citizen ) been able to setup a working business model using an offshore account in conjunction with PayPal? If so, what country did you incorporate in, and in what country did you open the banking account in?
Thanks!
- Mithra
