Question One-man consulting business with no taxes and no accounting

[WhiteExpert]

Hello forum!

I'm new around here. I'm working as a consultant for an EU company. I have to invoice them for my salary and commissions. So far, I've been doing it through a UK LLP that's tax transparent.

I'm looking now for a setup where I would like to have zero tax and a bank account with a linked debit card that I could use for personal expenses and eventual ATM withdrawals. For that reason I'd like to have a company that doesn't have to keep accounting records.

The privacy is not important at all (I'm fine with having my personal details available online, linked to that company)

The total income here's is up to 100,000 EUR annually. There are no expenses and I'm the only person there. I can be the director, if needed.

I've been thinking of a Delaware company with wise account with a debit card, but in that case I have to keep clean accounting records. No taxes for me as a non US resident with fully foreign income.

I'm a non-UK, non-US, and non-EU resident. My country is not part of any tax treaties and these other acronyms.

What setup do you suggest?

 

[KDX]

We need more info:

Your citizenships
Your residencies (incl. Tax residency)
Do you have ties to a country e.g. house, regular bills, phone num?


You may need to relocate.

A Dubai company with the UK LLP could work.

 

[WhiteExpert]

I'm a resident of BosniaHerz. I have no relations with any other country.

 

[KDX]

I'm a resident of BosniaHerz. I have no relations with any other country.

Bosnia and Herzegovina - Corporate - Corporate residence

Detailed description of corporate residence rules in Bosnia and Herzegovina

taxsummaries.pwc.com

It seems like a bosnian company would be taxed at 10% CIT + 5% dividend. Not bad.

If you want to move to pay 0% then of course you can do that.

 

[WhiteExpert]

A Dubai company with the UK LLP could work.

Even with the UK LLP, I'll have to keep the accounting records. So I won't be able to use the company's wise card for personal expenses and ATM withdrawals. Correct me if I'm wrong.

 

[KDX]

Even with the UK LLP, I'll have to keep the accounting records. So I won't be able to use the company's wise card for personal expenses and ATM withdrawals. Correct me if I'm wrong.

@Fred can tell you more. I'm not sure if Dubai accounting is so strict there. But again, you would have to relocate... You can't just evade taxes in 2022

 

[Fred]

@WhiteExpert basically you get everything you are looking for in Dubai.

However with 100k yearly the renewal fees would led to something equal like 3-4% tax.

If you have ambition and possibilities to scale the business then go with Dubai otherwise the US LLC with Mercury is the best budget alternative with solid bank alternative.

If you are fine with Lithuania EMIs and trust them you can choose even old school jurisdictions like BVI.

 

[Jerry1911]

What's wrong with the current setup? Open a personal bank account in a foreign country, take out the profits from the LLP and spend it as you wish. Bosnia and Herzegovina are not part of CRS/AEOI from what I understand. Or just pay 5% tax on dividends and call it a day.

You may also be able to take the profits out of the LLP in the form of cryptocurrency, in that case sell it for cash locally or in some neighbouring country.

Btw I'm thinking about moving to Bosnia myself, I wonder what is your lifestyle like there with 8k+ EUR per month.

 

[WhiteExpert]

Do you know any EMIs that offer debit cards to non EEA residents (Bosnia is not in EEA either; with all its pros and cons).

Transfer wise doesn't issue debit cards to Bosnian clients.

 

[Jerry1911]

Do you know any EMIs that offer debit cards to non EEA residents (Bosnia is not in EEA either; with all its pros and cons).

Transfer wise doesn't issue debit cards to Bosnian clients.

No, but I'm sure someone here does

 

[Fred]

Paysera, Bitsafe etc. Our clients in UAE using for EUR debit card.

Should work for you in Bosnia as well.