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There are plenty of legal was to lower your tax burden. Going offshore and setting it up correctly is one of them. Though as a US citizen it really does help if you are already living out of the USA and earning foreign income for the time required by the IRS to catch the tax break.
I know it all sounds fishy, but once you look into it and set it up correctly, you really can pay close to nill (or nill if you want) in taxes.
As a small cliff-note example, an expat who meets the requirements of the IRS to get the $85,700 take break, and claims a modest salary of 100k from such company that has a nominated director, only pays taxes on 15k. Of course then there are other deductions (like foreign housing deduction) on top of that which can knock it down to even less or nothing at all! However... what if you were making a salary of 80K? You would pay... NOTHING.
Of course you have to have your paperwork in order and meet the requirements of the IRS to get the foreign income break in the first place, but if you do, you're set.
I say, do your due diligence and save yourself a fortune by moving things offshore. Just choose the right company to do it for you. Also, don't bank and set up your business in the same country. For example, set up your company in Seychelles and bank in Cyprus. Or whatever countries fit your needs the best.
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