Taxes and Overseas corps?

[Love Brokers]

If an American citizen establishes a corp in foreign country solely for that foreign market and all of the income is derived from overseas sales of the "product" not directly connected to his U.S. Company, is that income taxable?

Will be checking with tax attorney in couple of weeks, but wanted to get some feed back on this.

[tical]

I talked about this with a fairly knowledgable (offshore) corporate planner as well as my accountant...

If you're looking to avoid taxes, as a US citizen... you can't (legally). Setting up an offshore account isn't what it used to be. Back in the day you could set up an offshore corp and give ownership of it to a director while you legally retained control of the entity. Since you didn't own the entity you weren't required to report any income generated by it. Well, in 1998 (I believe) that loophole was corrected and now (US Citizen) corporate owners as well as majority controllers are required by the IRS to report any income made on/offshore.

If I remember correctly you can't be taxed on this income UNTIL it enters the country... if you fail to report the income and access (wires, visas, atms, checks, etc) it you're commiting felony money laundering. Of course, the tricky part is... how do they know? How can you get caught?

But by having to ask these questions, you've already sacrificed the whole aspect of 'security' in regards to your bank account and offshore funds.

I can give you the contact information of a guy I know who's REAL good with this stuff who would be glad to explain it all to you and what your (safest) options are (because you do have SOME options).

[Love Brokers]

that would be great. Thanks for that input u have posted.

[qwe]

what about in Canada ? same as usa ?