Which country?

[NewWorldOrder]

Hello everyone.

I'm from the US and looking for the most advantageous offshore setup for company formation.

• I sell high-end vintage t-shirts
• I am and will be the sole owner/worker of company
• Unfortunately, a US citizen (I say that due to taxation) and with that being said, need a location most beneficial with respect to taxes and my citizenship

Need a country for company formation, bank account etc.

*Being in vintage, I don't want to form anything in the US because the taxes alone will eat away at any profits made. The system here (like many other systems in the US) is not meant for small business owners (never was and especially now, with the coming times ahead).

What do you guys think?

 

[Golden Fleece]

What do you guys think?

Judging by your remarks, I think that you need to hire a tax professional. If you remain living in the U.S. and sell your goods in the U.S., forming a company offshore will not save you any money on taxes. If you move offshore, then forming a CFC and a U.S. C corp. may reduce your taxes considerably. See my prior post in this thread:

"American Online Marketer, D.R. Resident & Setting Up Business In Estonia"

 

[JohnLocke]

As some already suggested here you want to consult a tax professional in your country. I'm sure there is a possible solution for you if you find the right firm to help you.

I would have a look here
https://www.forbes.com/sites/ashlea...ded-tax-and-accounting-firms/?sh=33bb85054845

 

[NewWorldOrder]

@Golden Fleece and Admin, thank you for taking the time to reply.

**** I should have mentioned that my business is entirely online (no physical presence) and that I sell all over the world.

Would this change anything?

Moreover, from this forum, I've gathered great information on possible viable formations in the US; in WY for asset protection and/or NM for privacy (at-least to start) but ideally (what I want) is to move profits out of country in some place like Belize (though not Belize specifically, as I understand it's going public).

 

[Golden Fleece]

@Golden Fleece and Admin, thank you for taking the time to reply.

**** I should have mentioned that my business is entirely online (no physical presence) and that I sell all over the world.

Would this change anything?

Moreover, from this forum, I've gathered great information on possible viable formations in the US; in WY for asset protection and/or NM for privacy (at-least to start) but ideally (what I want) is to move profits out of country in some place like Belize (though not Belize specifically, as I understand it's going public).

If you live in the U.S., you will not lower your tax burden by forming an offshore entity (otherwise everyone would do it). If you live offshore, then there are indeed ways to lower your tax burden, often very significantly (often just by taking advantage of the Foreign Earned Income Exemption to draw a salary from a CFC that you create). If you still reside in the U.S., it does not matter whether your business has no physical presence in the U.S., because U.S. citizens pay taxes on their worldwide income unless an exemption exists (e.g., the Foreign Earned Income Exemption).

Forming a trust or foundation and moving profits offshore for privacy or liability reasons (against frivolous lawsuits) is also a legitimate goal, even if you choose to remain in the U.S. and no tax benefits apply. There is plenty of information on the web.

I have to disagree with the Admin in post number three. Most CPAs in the U.S. know absolutely nothing about tax law for Americans living offshore and, for that reason, are far too conservative in their analysis. It is best to hire a CPA who specializes in expat tax law for Americans. These CPAs often live offshore themselves and have their service businesses located offshore. A Google search will find them.

 

[NewWorldOrder]

If you live in the U.S., you will not lower your tax burden by forming an offshore entity (otherwise everyone would do it). If you live offshore, then there are indeed ways to lower your tax burden, often very significantly (often just by taking advantage of the Foreign Earned Income Exemption to draw a salary from a CFC that you create). If you still reside in the U.S., it does not matter whether your business has no physical presence in the U.S., because U.S. citizens pay taxes on their worldwide income unless an exemption exists (e.g., the Foreign Earned Income Exemption).

Forming a trust or foundation and moving profits offshore for privacy or liability reasons (against frivolous lawsuits) is also a legitimate goal, even if you choose to remain in the U.S. and no tax benefits apply. There is plenty of information on the web.

I have to disagree with the Admin in post number three. Most CPAs in the U.S. know absolutely nothing about tax law for Americans living offshore and, for that reason, are far too conservative in their analysis. It is best to hire a CPA who specializes in expat tax law for Americans. These CPAs often live offshore themselves and have their service businesses located offshore. A Google search will find them.

Thank you very much for your thorough reply Golden, I do appreciate it and will take your advice regarding finding an expat tax law CPA.

I also like your idea of forming a trust or foundation... this is interesting and I'll have to delve deeper into it.

 

[JimBeam]

You need to be really careful so you don't get busted and end up in jail... US can track all pretty much all transactions in USD on a global scale...

IMO You have two options here:
1. Relocate (and I doubt this business will be worth doing such thing)
2. Find a partner you can trust who is not US resident who will run the job for you in his name