Did you form an offshore LLC last year? Are you using an offshore LLC to hold foreign investments or to protect an international bank account? Here are your US filing requirements for that offshore LLC. As the owner of an offshore LLC, you’ll need to file an entity election form, an annual tax return, a
With all the talk about keeping jobs at home and taxing foreign corporations, I wanted to start the year with a post on why Trump is great for the offshore industry… at least, for those operating small businesses, investing abroad, and/or moving assets offshore for asset protection. This article will focus on why a Trump
In this article, I’ll review the rules around PFIC investments and the Passive Foreign Investment Company statutes. Here’s everything you need to know about passive income in an offshore corporation. First let me define a few terms around PFIC. Passive Income: Income from interest, dividends, annuities, capital gains, and most rents and royalties. Passive
When you’re planning a move abroad, you need to consider the tax laws of your country of citizenship and your country of residence. The key to a solid expat move is to determine which countries tax worldwide income and avoid them whenever possible. There are four basic tax groupings of countries. I won’t consider the
If you want to receive client funds into your offshore account, you must have a license or set up a specially designed offshore structure. Whether you’re raising money or managing money, if you’re not the owner of the cash in your offshore bank account, you will need an offshore money management license. In this article,
Puerto Rico has the best tax deals available to Americans… period. No offshore jurisdiction can compete with the US territory of Puerto Rico when it comes to cutting your taxes. This post will focus on Puerto Rico’s research and development and intangible property tax breaks. Act 73 is for those who develop licensed or patented
The Foreign Earned Income Exclusion for 2017 has finally been released and we expats get an increase of $800 this year. The U.S. government has increased the Foreign Earned Income Exclusion for 2017 to $102,100, up from $101,300 in 2016. You can attribute this big time increase of the Foreign Earned Income Exclusion for
Watch Where You Invest Those Retained Earnings – IRS Tracking Luxury Home Purchases from Offshore Companies
According to the N.Y. Times, The IRS has begun tracking homes bought through offshore companies and shell corporations in the United States. If you’ve setup an offshore structure, and used your retained earnings to buy real estate in the United States, you’re probably a target of the IRS. Even if your offshore company is tax
Once you have your Act 20 business in Puerto Rico up and running, you need to think about protecting its retained earnings or distributed profits. Asset protection for a Puerto Act 20 business becomes urgent because of the amount of capital held in the company tax deferred. There are two levels of asset protection for
If you are going to take your business offshore in 2016, your offshore structure must have substance. No more shelf companies, no more nominee directors, no more trying to fake out the IRS. Taking your business offshore today demands a real office, employees, and work being done offshore. Here is a step by step guide
Here’s how to maximize the value of your Puerto Rico Act 20 business using the income sourcing rules. Maximizing Puerto Rico sourced income in an Act 20 business, and thus minimizing US sourced income, is the key to unlocking the 4% tax rate offered in Puerto Rico. The rule is simple: only Puerto Rico sourced
Are you looking for a high quality of life, no taxes, and a cool offshore jurisdiction from which to operate your internet business? Ready to move you and your team to paradise for a few years to rake in the cash tax free? Then consider moving your internet business to Cayman Islands. Cayman Islands had
Mossack Fonseca Searchable Database Goes Online – Who Should be Afraid of the IRS and Panama Papers?
Do you have a company or bank account in Panama? Are you wondering if you should be worried about the IRS and Panama Papers? Do you know that the searchable database of Mossack Fonseca clients came online today? Is the thought of the IRS knocking on your door keeping you up at night? Let me
The Puerto Rico tax deal is the inverse of the Foreign Earned Income Exclusion. Here’s why: With a Puerto Rico tax contract you can live in the US, your first $100,000 or so in salary is taxable, with rest deferred at 4%. If you live offshore and qualify for the FEIE, your first $101,300 is
You’ve heard the adage of investing when there’s blood in the streets… to buy when all hell is breaking loose and the market is at bottom. Well, now is your opportunity for some offshore tax planning while there’s blood in the streets. An offshore tax planning opportunity that will cut your corporate rate to 4%!
I’m frequently asked about the use of offshore shelf companies in international business. If you are debating between forming a new offshore corporation or buying an offshore shelf company, read this article before spending the extra cash. Some online incorporators market offshore shelf companies as the greatest invention since the numbered bank account. I think
Did you form an offshore company but the business didn’t go as planned? Do you need to close an offshore company? There are two ways to go about this. To close an offshore company that’s never done any business and has not yet opened a bank account, “allow it to die a natural death.” This
If you’re new to the world of offshore, then this article on offshore basics is for you. Thinking about starting a business abroad? Want to move you or your assets out of the United States? Offshore basics will tell you how… and what’s legal and what’s not for an American abroad. Many of the articles
Which is better, an offshore corporation or offshore LLC? Does an offshore corporation provide more protection than an offshore LLC? What are the benefits of an offshore LLC compared to the benefits of an offshore corporation? These are the questions I get every day, and the answer is not as simple as you might think.
Want to open an offshore bank account? Here is our guide on how to open an offshore bank account quickly and easily. Do you want to know how to open an offshore bank account? Are you thinking about moving some of your assets out of the United States? Want to protect yourself from issues within the