Quote:
Originally Posted by ManyQuestionsGuy
rescind US citizenship
Oh wait, those are big words now! LOL Ok, so USA is what it is, but most importantly I have my family here.
Now this is something I didn't expect, which makes posting here worth while. It is easy for me to get Mexican citizenship since they allow dual citizenship. Our idea was 2 lawyers, one to handle the colombian paperwork, and another to handle the mexican paper work. If I understand you guys correctly, i still would have to do legal work here in USA? Would I have to pay taxes for the full amount made from the company? the amount I bring with me to the USA?
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Exactly the reason for suggesting earlier that you may be better having your corp within US territory and complying with whatever laws - including 2257.
At the same time, this may not be to the benefit of your partners where they may prob save on the taxation side by having the corp outside the US.
This really gets messy and it's very hard to say much without knowing personal stuff - and don't suggest you do that here!
OK.. Try this.... You are a US citizen. You elect to have dual nationality, but remain resident in the US. In that instance you are obliged to notify the IRS of your foreign interests, pay whatever taxation and comply with US law.
This is fairly common - another example is... eg... A German citizen marries an US citizen and they both live in Germany. Sure as hell, the IRS will end up sending that German citizen a tax form for declaration of taxation due by his US wife *lol* Of course the German citizen may well communicate with the IRS and tell them what he did with their tax form
Seriously... there are two factors....
First is country of citizenship - if you are a US citizen, you are obliged to file returns whether you reside in the US or in another country. Normally this is not the case - eg a Swiss national can simply declare non-residency and live on a tax free Caribbean island and is not required to file any tax data to the "home country" - and he still retains his Swiss citizenship and can have total privacy in biz dealings. But... if that Swiss national eventually returned to live in Switzerland permanently (more than 3 months/year) - he would be obliged to file and pay whatever taxes, but not on any funds declared when first arriving back in Switzerland since those funds were earned during the term of non-residency in Switzerland.
Second is country of residency. Unfortunately this is not of significant benefit to US nationals/citizens since, irrespective of the country of residency, there is still a requirement for IRS filings annually. Again... the difference with other nationalities is the same as above - they don't need any filings back to their "home country", but simply pay local taxes, if any.
Bottom line - it really does not matter much about dual nationality with Mexico. As long as you are resident within the US and remain a US citizen, there is... well... no leeway in that there is an obligation to comply with US law. Even if you changed citizenship, but then spent most of your time in the US, there needs to obviously be a basis for doing so and that normally implies some form of "earnings" and taxation. To be free to operate legally in OS without scammy hiding and subterfuge, it really means both a change of citizenship and a change of residency.
That said... know plenty US folks around here who take the benefit of "non-residential" allowances (it's around $80K annually) from the IRS and just do the annual filings. They are also obliged to file data on their corps or businesses, but most have no reason to hide these - and they remain US citizens.