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Is there a way to register a business in a different country outside USA for less taxes ?
- Thread starter newbieshore
- Start date
Definitely possible, but you might have to explain more to understand how others can help. Like what is your line of business and what exactly do you want to achieve
Line of business is crypto, forex, and real estate.
Goal is to pay as less taxes as possible.
I live in the united states.
Romania,
Up to 1M Eur a year, it's the following :
3% of all income ( regardless of expenses ), 1% if you have 1 employee with minimum wage ( about 500 euro from which about 150 are taxes )
5% on dividents ( from all profit you take out ). Can be done each 3 months.
It looks strict on paper, but crypto, forex they can't check this so it's just declaration, the local ANAF doesn't even bother.
Ask more info if u need.
P.S. You can make revolut, transferwise, paypal, stripe, etc.( all payment methods available to the EU ). The government can't really see anything that is not in a Romanian bank or freeze any international bank accounts the company has.
Up to 1M Eur a year, it's the following :
3% of all income ( regardless of expenses ), 1% if you have 1 employee with minimum wage ( about 500 euro from which about 150 are taxes )
5% on dividents ( from all profit you take out ). Can be done each 3 months.
It looks strict on paper, but crypto, forex they can't check this so it's just declaration, the local ANAF doesn't even bother.
Ask more info if u need.
P.S. You can make revolut, transferwise, paypal, stripe, etc.( all payment methods available to the EU ). The government can't really see anything that is not in a Romanian bank or freeze any international bank accounts the company has.
If you plan to remain living in the U.S., then the answer is "no" for obvious reasons (i.e., if it were that easy to legally avoid taxes then everyone would do it).
If you live outside the U.S., then the answer is "yes, it is possible -- depending on the type of business and if it truly is a real business." There is plenty of information on this forum to get you headed in the right direction.
@Golden Fleece
I don't understand why anyone would like to leave the US.
Let's take a look at my mother's salary, Romania.
Executive position in natural gas domain, 5 years away from pension :
- She earns 18500 RON ( equivalent of 3750 EUR ) ,
- she pays 43% taxes, she is left with 10500 RON ( about 2100 Eur ),
- everything she spends has 19% VAT on it , that means she actually has 8823 RON to spend ( roughly 1750 Eur )
- If you add the average tax on property, car ( a 4L engine is taxed 2000 euro / year ) she roughly remains with about 1300 Eur
Basically she pays 2/3 of her income in either sort of taxes. And bear in mind there is no way to deduct anything.
What is most annoying that 10% goes to healthcare ( public ), yet I had to drove her to the hospital (they refused to send a ambulance), where they refused to take her.
What I'm trying to say is, don't cheap out on the actual benefits. Most of us won't probably be shot, but probably all of us will get to a hospital at least once in our life time.
Sure some can argue and say, Germany, France, UK. I lived in all 3, true for a few months on France, but man ... they scream inequality and abuse.
The society itself tends to limit people rather then help them achieve their best professional level.
So a big NO NO from me.
I personally would like to move to the US (just started talks with a lawyer regarding L1A visa), just because the Europe mentality is very wrong, the entire system is corrupt and the need of society is way over the need of the individual ( obviously on paper ).
It almost does not matter how much money you have, but it does matter how many people you know, put food on their table, bribe officials, etc. Ex. I can be a multi-billionaire, yet if I want to purchase a firearm/handgun for my own protection, I can't. The political can shut the private down, and there is no justice to help you, as most Eastern Europe countries have separate laws for Institutions or State itself. Basically you can sue, win (in 2-5 years) yet you can't constraint the state to reimburse you your loss.
If you want to have permission ( permission, not license ), to do anything move to Europe.
What I'm trying to point out here, is that choose your country that you actually want to live in, very careful. A cheap country may mean more money saved from tax, but it has many many more minuses (poverty, low quality of life around you, bad services, bad public health, no justice system etc.)
You can actually make a Wyoming LLC, establish residency, invest every profit you don't need, deduct some of your expenses on your company ( it appears the US has a lot of deductibles, I'm amazed as I can't even deduct my car here without raising eyebrows ). Invest in stocks before the fiscal year, sell afterwards, spend what you need, repeat. Invest in ART, invest in land, make a non profit, donate to the non profit. Make a trust, make sure your kids don't have to pay inheritance taxes.
I'm 31, in the past 2 Years I studied more about the US than some of the locals know about. It's the best place to grow your business, have a safe and steady environment. Yes, it seems to have some social problems that I never encountered in my country, but the pro's outweigh the cons, I can assure you after living in some European countries. Those social problems can be easily be set by moving to a community of likeminded people, something that you can't in Europe, the law is the same everywhere.
I don't understand why anyone would like to leave the US.
Let's take a look at my mother's salary, Romania.
Executive position in natural gas domain, 5 years away from pension :
- She earns 18500 RON ( equivalent of 3750 EUR ) ,
- she pays 43% taxes, she is left with 10500 RON ( about 2100 Eur ),
- everything she spends has 19% VAT on it , that means she actually has 8823 RON to spend ( roughly 1750 Eur )
- If you add the average tax on property, car ( a 4L engine is taxed 2000 euro / year ) she roughly remains with about 1300 Eur
Basically she pays 2/3 of her income in either sort of taxes. And bear in mind there is no way to deduct anything.
What is most annoying that 10% goes to healthcare ( public ), yet I had to drove her to the hospital (they refused to send a ambulance), where they refused to take her.
What I'm trying to say is, don't cheap out on the actual benefits. Most of us won't probably be shot, but probably all of us will get to a hospital at least once in our life time.
Sure some can argue and say, Germany, France, UK. I lived in all 3, true for a few months on France, but man ... they scream inequality and abuse.
The society itself tends to limit people rather then help them achieve their best professional level.
So a big NO NO from me.
I personally would like to move to the US (just started talks with a lawyer regarding L1A visa), just because the Europe mentality is very wrong, the entire system is corrupt and the need of society is way over the need of the individual ( obviously on paper ).
It almost does not matter how much money you have, but it does matter how many people you know, put food on their table, bribe officials, etc. Ex. I can be a multi-billionaire, yet if I want to purchase a firearm/handgun for my own protection, I can't. The political can shut the private down, and there is no justice to help you, as most Eastern Europe countries have separate laws for Institutions or State itself. Basically you can sue, win (in 2-5 years) yet you can't constraint the state to reimburse you your loss.
If you want to have permission ( permission, not license ), to do anything move to Europe.
What I'm trying to point out here, is that choose your country that you actually want to live in, very careful. A cheap country may mean more money saved from tax, but it has many many more minuses (poverty, low quality of life around you, bad services, bad public health, no justice system etc.)
You can actually make a Wyoming LLC, establish residency, invest every profit you don't need, deduct some of your expenses on your company ( it appears the US has a lot of deductibles, I'm amazed as I can't even deduct my car here without raising eyebrows ). Invest in stocks before the fiscal year, sell afterwards, spend what you need, repeat. Invest in ART, invest in land, make a non profit, donate to the non profit. Make a trust, make sure your kids don't have to pay inheritance taxes.
I'm 31, in the past 2 Years I studied more about the US than some of the locals know about. It's the best place to grow your business, have a safe and steady environment. Yes, it seems to have some social problems that I never encountered in my country, but the pro's outweigh the cons, I can assure you after living in some European countries. Those social problems can be easily be set by moving to a community of likeminded people, something that you can't in Europe, the law is the same everywhere.
We are comparing apples and oranges here. I do not disagree with much of what you said. If you strive to create a better life the U.S. is a great place to accomplish that goal, which explains why so many people try to emigrate there. It is certainly vastly superior to the social welfare nations of Europe.
But this thread is not about immigration or emigration, it is about someone who lives in the U.S. and wants to legally minimize his taxes using an offshore business. That is a completely different issue. For example, someone living in NYC can pay more than 50% in just various income taxes, not including sales tax, property tax, etc.
Someone who has a portable business that earns more than $200k can leave the U.S. and lower their overall income tax rate from 35% to 50% to about 15% or so. In fact, they can reduce it to zero percent on the first $108k by using the Federal Earned Income Exclusion (FEIE). I wrote about it here:
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@Golden Fleece
Yes you are right, I have the tendency to drift away from the subject. Sorry about that.
What I wanted to point out is that he can :
- Move to a state with no personal income (ex. Wyoming, Washington ), or at least set your fiscal residency there. He can live in a RV if he wants.
- Open a Wyoming LLC
- If he earns 200k and only needs 40k to live, he can use the Wyoming LLC to invest in stocks, etf's, crypto etc.
- I recommend to invest the profit no later than November and if he needs a cashflow to sell the stocks after the end of the fiscal year.
- He could also invest in Art
- He could donate money to a trust so that the trust can buy property, which avoids inheritance tax for next of kind.
- Buy a car on the LLC, deduct as much as you can for your day to day life.
Basically I'm trying to say, that the US offers a possibility to actually pay nothing, but it needs a proper planning.
I'm sure a local advisor could help.
But this way, he can actually control if he needs to leave the US or not.
Yes you are right, I have the tendency to drift away from the subject. Sorry about that.
What I wanted to point out is that he can :
- Move to a state with no personal income (ex. Wyoming, Washington ), or at least set your fiscal residency there. He can live in a RV if he wants.
- Open a Wyoming LLC
- If he earns 200k and only needs 40k to live, he can use the Wyoming LLC to invest in stocks, etf's, crypto etc.
- I recommend to invest the profit no later than November and if he needs a cashflow to sell the stocks after the end of the fiscal year.
- He could also invest in Art
- He could donate money to a trust so that the trust can buy property, which avoids inheritance tax for next of kind.
- Buy a car on the LLC, deduct as much as you can for your day to day life.
Basically I'm trying to say, that the US offers a possibility to actually pay nothing, but it needs a proper planning.
I'm sure a local advisor could help.
But this way, he can actually control if he needs to leave the US or not.
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