--- On Wed, 1/7/09, Trixter aka Bret McDanel <[email protected]> wrote:
> If you have a large enough base, you can legally > (generally) avoid taxes (consult a tax advisor!) by forming > a corporation somewhere and running all non-US stuff through > there (sales, service, etc) which halts the US > from taxing globally as they love to do with companies that > are US based. Be VERY careful going this route: 1. While YOU think the US should not be taxing such a company, The IRS may disagree. 2. If you own directly or indirectly more than 50% of the company it is considered a CFC (Controlled Foreign Corporation) which will make it be treated as a regular US company for tax purposes - actually worse because it will guarantee more scrutiny and reporting requirements. 3. YOU don't avoid taxes. The COMPANY does. When you take out money from the company you are still required to pay personal income tax on it. 4. Offshore companies are viewed pretty negatively which may or may not get you in trouble with potential vendors and customers. The "bill for trademarks" model might work but in all likelihood the IRS will go after you. 5. If the majority of your income is from the US, the IRS is likely to try and go after a foreign company too for taxes. Just calling it "Hong Kong" won't work if 90% of your customers are in Atlanta, for example. You have to have a legitimate business reason if this ever comes up in court, and the business has to have multiple owners preferably not US citizens or residents. Anyway, this is just what I've researched about the subject. I've been considering it for asset protection more than tax purposes, but will most definitely not do it without consulting a lawyer first. -- Nitzan Kon http://www.future-nine.com/ http://www.comparevoipproviderrates.com/ _______________________________________________ --Bandwidth and Colocation Provided by http://www.api-digital.com-- asterisk-biz mailing list To UNSUBSCRIBE or update options visit: http://lists.digium.com/mailman/listinfo/asterisk-biz
