Is it necessary to hire a consultant structuring corporations and bank accounts?

[mbhemming]

My situation
-I have started a business and we are making 20K/month. The income will start next month.
-The business is conducted solely through the internet and is a service business. A sales service.
-I'm Canadian but left 1.5 years ago and filled out paperwork so that I've left Canada for tax purposes

How difficult is it to do figure out the corporate/banking (offshore) structures?

Is there a book, course, or system, that will tell me how to do this?

Do you recommend hiring a consultant (not trying to do it myself)?

How much would I cost to hire a consultant to do all of the following?:
-plan the corporation
-banking
-citizenships/passports?

Do you recommend any consultants who are great and not over-priced?


Thanks for your responses!

 

[Outlander]

There are many consultants in this forum and elsewhere. At a $20k/month revenue point, I think it'd be smart to spend some money for a whole consultation of your situation, to be on the safe side if you're going to incorporate somewhere, as it doesn't seem it's overly complicated really.

If you're planning to internationalize your whole life and go to a full freedom plan with offshore corporations+banking+citizenship, consultation costs can add up quickly, and your relative lack of knowledge in these subjects mean you're likely to be approached by opportunists or people that are just trying to upsell you neat packages that you don't actually need but they'll make you think you do.

If you're entering this world now, take time to learn, there's a lot of good information for free in this forum, and implement your plan one step at a time. Start small and let information sink in slowly. Double check sources. Ask meaningful questions. I've been studying this for years and never had to pay for any course or similar.

 

[Frank N Stein]

Better to get professional advice on matter like these so you can concentrate on your business. Yes, you can DIY it but at the risk of missing something that could be costly in the future.

 

[JohnLocke]

-I'm Canadian but left 1.5 years ago and filled out paperwork so that I've left Canada for tax purposes

Where do you live today? It may be important for someone to help you to know that, especially for tax advise.

 

[mbhemming]

I have spent most of my time in Mexico. I haven't started a residency there yet. I know I need to increase my ties to Mexico(or some other country) and decrease my ties to Canada, or the Canadian government could try to make a case for me still living in Canada.

 

[Outlander]

Increase your ties in Mexico only if you plan to spend time in Mexico or live there. If the idea is getting rid of Canada, a permanent residency in a country which does not require a lot of staying in order to keep the resident status makes more sense in my opinion.

 

[Unicorp Consulting]

My situation
-I have started a business and we are making 20K/month. The income will start next month.
-The business is conducted solely through the internet and is a service business. A sales service.
-I'm Canadian but left 1.5 years ago and filled out paperwork so that I've left Canada for tax purposes

How difficult is it to do figure out the corporate/banking (offshore) structures?

Is there a book, course, or system, that will tell me how to do this?

Do you recommend hiring a consultant (not trying to do it myself)?

How much would I cost to hire a consultant to do all of the following?:
-plan the corporation
-banking
-citizenships/passports?

Do you recommend any consultants who are great and not over-priced?


Thanks for your responses!

As it was mentioned before me you should talk to a local consultancy, try to find some certified (!) tax advisor and start with them.

 

[JustAnotherNomad]

As others have pointed out, you can use free sources like this forum or even blogs as a starting point.
But I would never do anything without consulting with a tax lawyer from my home country as well as a tax lawyer from the new country, ideally one person that has dealt with both. There are a lot of people who aren’t lawyers who will try to sell you something. They may be right or they may be wrong. Always verify everything people tell you with an independent, LICENSED professional.

 

[mbhemming]

Summarizing the insights so far.

I need the following:

1) A consultant to help me plan where to have my accounts, residencies, corporations. This is worldwide
2) licensed professional (tax lawyer) in Canada
3) licensed professional (tax lawyer) in country of residence
4) licensed professional (tax lawyer) in the country of the corporation

Does everybody agree with this?
Is there anything to add or delete?

 

[reesek]

correct
.
and some reference letters from your existing banks. y

 

[mbhemming]

NEW QUESTION:

What are some important questions for interviewing a consultant that will help me with the broad plan of residencies, bank accounts, and incorporating?

I want to know I'm getting a person who can do the job well.

 

[reesek]

how much tax has he managed to save his clients from paying

 

[Tango2015]

NEW QUESTION:

What are some important questions for interviewing a consultant that will help me with the broad plan of residencies, bank accounts, and incorporating?

I want to know I'm getting a person who can do the job well.

Hi mbhemming - I'm a new user on here - we're planning a move from Canada to Mexico in the next 12 months. We also operate an online business (digital agency) and we're looking for answers to many of the same questions (see below). I'm hoping to find individuals in similar situations looking for the same answers - share questions, ideas and solutions. You're the 2nd person I've come across. Let me know if you want to connect.

1. Cutting tax residency ties with Canada and an opinion about whether we could keep a vehicle registered in Ontario as our only personal tie
2. Options for offshore banking and EMIs that would allow our business to invoice, collect payments and pay bills outside the Mexican tax system plus give us access to funds when/where we need them
3. Ideas for what to disperse and declare as personal income in Mexico - how to take best advantage of personal deductions available there

 

[uplana]

1. Cutting tax residency ties with Canada and an opinion about whether we could keep a vehicle registered in Ontario as our only personal tie

I assume consulting a CPA will costs you a few hundred $$ and you will get a qualified answer.

 

[bizniz]

There are consultants out there who know this stuff reasonably well. I agree it is worth hiring a professional, but hiring 3 is overkill.

Mexico is a great country to be a "permanent tourist" and it is quite easy to live there as a foreigner and avoid getting into their tax system. BUT, once you are in, it is not a nice tax system - tax on worldwide income, requirement to declare offshore accounts, and surprisingly efficient enforcement. I would seriously consider getting a formal tax residency in another country. You are still just in time to do the Friendly Nations visa in Panama before the system changes in August so you might want to look into that. When I checked a few weeks ago there were SEVEN daily flights from Panama City to Cancun, even during Covid times, plus frequent direct flights to several other Mexican cities. You just need a minor business presence in Panama, go there for a few days every few months, and spend most of your time on a tourist or retiree visa in Mexico. That's one way of doing it, anyhow

 

[Tango2015]

Hi bizniz - the challenge would be providing a reasonable argument to Canada about tax residency. If I ever wanted to return there (without a giant tax headache), eventually I would need to substantiate my claim that I was not a tax citizen of Canada while I lived abroad. Unfortunately, a few visits a year to Panama won't do that. If I was to live in Mexico, perhaps I should plan to receive and declare enough personal (or self-employed) income needed to pay the bills in Mexico and pay the taxes on it there. The challenge is an offshore structure for a digital business that would allow as little tax as possible. Considering Malta for an operating company with a foreign parent based someplace with zero corporate tax and claim the 30% rebate. Any thoughts appreciated.

 

[bizniz]

Hi bizniz - the challenge would be providing a reasonable argument to Canada about tax residency. If I ever wanted to return there (without a giant tax headache), eventually I would need to substantiate my claim that I was not a tax citizen of Canada while I lived abroad. Unfortunately, a few visits a year to Panama won't do that. If I was to live in Mexico, perhaps I should plan to receive and declare enough personal (or self-employed) income needed to pay the bills in Mexico and pay the taxes on it there. The challenge is an offshore structure for a digital business that would allow as little tax as possible. Considering Malta for an operating company with a foreign parent based someplace with zero corporate tax and claim the 30% rebate. Any thoughts appreciated.

Yes, well it you have a point for sure. Canada will track whether you are in Canada or not. Of course you can't just go to Panama as a tourist - you should for example buy an apartment there, have a company doing some billing, have utilities in your name, and most importantly file a tax return in Panama as a resident. If you do that, Canada is going to care too much that you spent a lot of time vacationing at a second home in Mexico.

 

[Tango2015]

I hear you. Thanks for the feedback on this.