You mentioned before that you can become an American citizen if you wanted but you didn't want to and they way you stated it, it was natural to think that you are talking about present time but now you say that you don't even have a green card and you are talking about 3 years after you get your green card. As I mentioned before as soon as you are in USA more than 180 days/ year, you will be taxed by IRS independent of your citizenship but it seems you are not aware of this by talking about your citizenships. To summarize your postings: 1- You are not American Citizen 2- You don't even have a green card 3- You don't file tax returns or pay tax in USA 4- You don't know the tax rules in USA But somehow you know that tax system in USA is so good that no other country can compare to it.
back to the important stuff has anyone looked into actully incorporating in the cayman islands? Its like right next to were I live. If you incorporate there couldn't you pay your self a small salary and just pay the US taxes on that? Like what you do when you are incorporated in the states? Except skip paying any taxes on the non salary profits? That would be pretty sweet, depending on how much it costs to get it set up.
Could I just get a company credit card issued from the bank in the caymans? I read that like every big bank in world has an office there. I don't really know anything about taxes, but I do know I don't like to pay them.
Cayman is not a good choice, very bad reputation so IRS controls the transactions with cayman very carefully. IRS also regularly demands the list of all credit card holders and their spending from the credit card companies, so they will find it very easily if you do something like that. Saving on taxes is not a game that you play unless you have enough that it is worth it. If you decide to play, there are many European jurisdiction that offer this kind of service and these countries do not get as much attention as cayman. You can register a trust in Luxembourg which has much better secrecy laws than Switzerland. You or some one in your family can be beneficiary but since you do not officially "control" the trust, it is not your money. The trust can own the shares in European corporation for example in Ireland with nominee directors that invests any access capital. This European company in turn can own an American corporation for example in Nevada that invests money in USA, for example buys a house that let you rent for a "reasonable" price. Nevada corporation has no state tax ($100/year) and no federal tax because it is not making any money. If the investments of American appreciates then the profit can be transferred to European corporation with low tax and end up in the trust. If you think it is worth it for you then contact a good accountant, lawyer and offshore specialist since it will not be fun if they charge you with tax fraud.
There are places you don't have to pay Federal income tax in the US? I believe you're thinking of state income taxes which are but a small fraction of federal taxes anyways.
But it's not that complicated. You see the problem is that most of you and us prob can't even consider a tax haven, at least when of the famous ones such as the cayman islands, panama, monaco, etc. The best option for most of us is reducing the amount of taxes paid legally, for instance moving the business to places where taxes are lower. US citizens still have the problem of IRS chasing you around the world, but most of the others can for instance move to the UK, set up a limited company, if it's small you only pay 10% on the company's profits (assuming Gordie, the communist hasn't changed it), pay little or no contributions if your earnings are low, and most of all that's in a very simple tax regulation environment, which makes it easy to understand and handle, with non need of a great and expensive accountant. Just make sure of existing double tax treaty agreements between the countries where you have your business and where you live, so you don't have to pay...double!
Well, whatever. That's my situation if you wanted to know. I am happy you have now understood correctly my position. I don't know the tax rules and that's why I am getting professional advice. So far it doesn't sound that bad at all, only immigration is fairly complcated and above all, a lengthy procedure. Your info is fairly basic compared to what I got from my lawyers, so I'll ignore it altogether. After all I am not getting US tax advice from a Canadian liberal.
It is becoming more and more clear that you don't have any idea what you are talking about. It is clear that you don't even know about such simple things such as State tax and Federal tax as hrblcantra mentioned in his posting. May be a good starting point for your lawyer (assuming that you have one) will be to explain for you the difference between the 2 type of taxes. Your lack of general knowledge about taxation (it is the same concepts in Europe also) and mentioning the old offshore jurisdictions in your post has convinced me that your full knowledge of such subjects is most likely limited to reading a couple of articles about rich people finances in a magazine. I have no problem to accept that I am a Canadian liberal but I can promise you that I have forgotten more about taxation (Canada, USA, Europe) and offshore jurisdiction than you will ever learn.
Don't use the Cayman Islands. Since November 2001 there has been a tax information exchange agreement with the U.S. that provides for the exchange of information relating to federal income tax. Although the agreement is supposed to apply only in certain circumstances it is not worth the risk. St. Vincent is a good choice for incorporation using nominee directors and bearer shares. There are no taxes, no tax information exchange treaties with any country and absolute privacy is embedded in the law. For example it is not possible to obtain a court order for the disclosure of confidential information. The incorporation and the bank should be in different jurisdictions and which offshore bank you choose should depend on your business requirements and account activity but all of them will provide a Visa card. Choose an offshore bank that is specifically licensed as one under the appropriate offshore banking legislation. Consult an expert organization before you proceed, for example milonline dot com. - Michael
You sound pissed off!? That in a way excites me! I very deeply looked into it a while ago, with cousin which is a very good accountant and tax advisor. The conclusion was that in most cases it's prob not worth the effort. That's where I got my info on relocating for tax purposes. Things might have changed a little, but not that much. And what's your problem with old offshore jurisdictions? I was actually saying that they are prob not a good option, what are you trying to say against that? And yes, I have more than one lawyer, thanks for your concern. About states with no taxation, don't make such a fuss of it as I was stating that there are better states than others and that makes people move sometimes. Do you know, I guess you do because there's so little you don't know, how many people living in Massachusetts (nicknamed Taxachusetts) moved just over the border and now live in New Hampshire because of the tax benefits? So, it can't be ignored. Still, I strongly support not to be greedy and don't take too big risks considering the classic tax havens, whether new or old, but do indeed consider simple and low tax countries with double tax agreements. Now, how can that be a problem for you?! If you don't agree, give your own knowledgeable opinion, tell us how to optimize our fiscal position, we're all ears...
Umm actually not sure why the long drawn out post you stated that many states within the US paid NO income tax, which is not correct Federal taxes as far as income go are much higher than state taxes, yes you can save money and get other incentives state to state, city to city, it however does not take away the income tax fully
I acknowledge that, although it's what I meant. To make things even clearer on that subject follow this link: No income tax states in the US
Yes there are states that don't have income tax, just as there are states that don't have sales tax, etc...Sorry don't intend this in a bad way, but I've lived my entire life in the US, as the taxes go I think I know a bit more on the subject....
OK, I believe that too, but what's wrong with what I stated? I repeat: for US citizens there are states maybe even only a few miles away where taxes in general are more favourable. Therefore I invite all those that might be interested in changing their tax position to consider such opportunities. For those who are not US citizens, I suggest low tax countries. For those in the UK I suggest...the UK! For those that already live and/or work in a country that's deemed a tax haven, I suggest staying there. Now I want you to consider something that I consider important: my suggestions are perfectly legal, what someone else said, isn't in my opinion. Of course you might not save as much but you can't have everything in life. If something above is wrong, let me know and I'll rectify it.
The only real problem is how you stated it especially with the discussion going on made it sound 'i don't think it could be taken any other way' that there are states you pay 'no' income taxes at all. This is not correct, I simply had to correct you on that Even in states however with higher taxes you still could benefit from going to those as many communities give huge incentives to corporations moving to them. Yes it's a good point to bring up to look around, nothing wrong with that