Cheapest online offshore company formation destinations to utilize non dom benefits

[Nw1]

Seychelles and Belize, cheap and no accounting required if you only use the company for a year or two. Otherwise easy to get some fake accounting for the company.

These two options have heard getting cc/debit card processors very difficult? What options available?

 

[Nw1]

Canadian LLPs (Ontario and BC provinces) are relatively cheap and have relatively low reporting requirements and have reputational advantages (no 'offshore vibes')

This one might not be suitable for my case since LLP would tie down income personally to me rather than to the company.

 

[aniglo22]

Seychelles and Belize, cheap and no accounting required if you only use the company for a year or two. Otherwise easy to get some fake accounting for the company.

Belize has substance requirements for specific activities and also your accounting needs to be kept at your registered agent .

 

[daniels27]

UK Limited? You could even make a UK trust.

 

[Nw1]

UK Limited? You could even make a UK trust.

Both i don't think works since UK no longer gives non dom benefits/foreign income waiver plus they have open public registries for all companies so not very private

Belize has substance requirements for specific activities and also your accounting needs to be kept at your registered agent .

Any idea on payment cc/debit card providers available?

 

[daniels27]

Then US LLC owned by a Marshall Islands company?

 

[Nw1]

Then US LLC owned by a Marshall Islands company?

How will I collect US client payments then?
Since US LLC makes income into local based..
Also MI country no paypal, wise or stripe for offshore companies as far as I know?

 

[daniels27]

Then use Canadian LP

But what are you concerned about with the US LLC?

If the company does not have ECI, the classic US tax law does not apply and the company distributes as a purely transparent entity.

@usacpa can assist you with this if you don't want to study all of the processes on your own.

 

[growthbusinessgr]

How will I collect US client payments then?
Since US LLC makes income into local based..
Also MI country no paypal, wise or stripe for offshore companies as far as I know?

Income will be local, if you are based on US. If you offer services outside of US, then you can co-operate with US companies without to pay 30% tax

 

[Nw1]

Then use Canadian LP

This one might not be suitable for my case since LLP would tie down income personally to me rather than to the company.

But what are you concerned about with the US LLC?

Income will be local, if you are based on US. If you offer services outside of US, then you can co-operate with US companies without to pay 30% tax

Really are you sure tax code says that local US income can be exempted too under foreign income clause because services offered outside US? This kind of goes against non dom foreign income clause as per what I understand since the whole point of this tax code is to bring in foreign remittances/cash flow without that cash flow being from their own country meaning you sell to other countries except US and if sell to US you pay tax since you incorporated there?

 

[growthbusinessgr]

IRS for services, state "Where services performed".

 

[daniels27]

Can we maybe clear the correct meaning of the title? "Non dom" commonly means:
UK residents whose permanent home is outside the UK may be entitled to non-domiciled status. A non-domiciled UK resident earning less than £2,000 in a year outside the UK does not pay tax on this unless it is transferred to the UK.
Source: https://en.wikipedia.org/wiki/Taxation_in_the_United_Kingdom#nondom

What OP is imo looking for is a zero tax company.

 

[Nw1]

Can we maybe clear the correct meaning of the title? "Non dom" commonly means:
UK residents whose permanent home is outside the UK may be entitled to non-domiciled status. A non-domiciled UK resident earning less than £2,000 in a year outside the UK does not pay tax on this unless it is transferred to the UK.
Source: https://en.wikipedia.org/wiki/Taxation_in_the_United_Kingdom#nondom

What OP is imo looking for is a zero tax company.

Company doesn't need have zero tax just it's foreign income tax needs be 0, have viable card payment processing options that can be opened online and no quarterly doc filling headaches. With low penalties for being late on annual return/CIT some of these countries saw the penalties they have no chill for example who can accept $3K penalty for being late to submit return/cit

 

[daniels27]

Ok. But what about the US LLC?

 

[Nw1]

Ok. But what about the US LLC?

Insticts tells me it is a bad idea and checked out paperwork looks like u need fill like 3 forms for taxes seperately and there is a concept of federal tax and state tax applying further adding complexity and more docs and for incorporation also u need get an EMI or ENI number and payment processor want you to have a physical address in US with probably setting up mail forwarding. And for example Delware LLC have annual fee of like $400. And penalties saw some articles stating stuff like 25K. Just see on YouTube how tough the cop situation is there so can imagine the beuracratic nightmares have to face incase of delays/errors on audits/return submissions etc. Most people can say don't worry hire a good firm to do all that. Have done that and geuss what all most all of the famous ones even file everything last minute even after you send them all docs 3 months prior to deadline and constantly followup if accounts/audits done and have changed firms as well but still same story and to make matters worse their calculations in accounts frequently have errors like some fresher did the accounts for you and gave. Even if tax/audit firm submits everything for you most of times they fill tax form putting your name as person who filled it and not as the firms name and in other cases that the firm puts their name and submits then still if any error the penalties get's slapped on your wrist since all famous audit firms get you to sign an agreement of engagement before work which states you as management liable and they are not liable.

 

[daniels27]

Insticts tells me it is a bad idea and checked out paperwork looks like u need fill like 3 forms for taxes seperately and there is a concept of federal tax and state tax applying further adding complexity and more docs and for incorporation also u need get an EMI or ENI number and payment processor want you to have a physical address in US with probably setting up mail forwarding. And for example Delware LLC have annual fee of like $400. And penalties saw some articles stating stuff like 25K. Just see on YouTube how tough the cop situation is there so can imagine the beuracratic nightmares have to face incase of delays/errors on audits/return submissions etc. Most people can say don't worry hire a good firm to do all that. Have done that and geuss what all most all of the famous ones even file everything last minute even after you send them all docs 3 months prior to deadline and constantly followup if accounts/audits done and have changed firms as well but still same story and to make matters worse their calculations in accounts frequently have errors like some fresher did the accounts for you and gave. Even if tax/audit firm submits everything for you most of times they fill tax form putting your name as person who filled it and not as the firms name and in other cases that the firm puts their name and submits then still if any error the penalties get's slapped on your wrist since all famous audit firms get you to sign an agreement of engagement before work which states you as management liable and they are not liable.

You need an EIN number. You need annual renewal and you need 1120 and 5472 form annually to report what you took out. And then there is BOI filling. Annually. Sorry simple, you can do it yourself.

Honestly, it won't get any cheaper than that. You can ask www.guidomoeller.com to handle it for you.

 

[Nw1]

You need an EIN number. You need annual renewal and you need 5472 form annually to report what you took out. And then there is BOI filling. Annually. Sorry simple, you can do it yourself.

Honestly, it won't get any cheaper than that. You can ask www.guidomoeller.com to handle it for you.

You forgot the two seperate federal and state tax forms need fill as well...

Looked at Albania as an option and they have a law that states need annually pay 20% WHT regardless of distributing dividends or not, sheesh

 

[daniels27]

Are you from Albania?

 

[Nw1]

Are you from Albania?

Nope

 

[Cloudbanck]

You forgot the two seperate federal and state tax forms need fill as well...

Looked at Albania as an option and they have a law that states need annually pay 20% WHT regardless of distributing dividends or not, sheesh

There are no state forms unless you do business in a state. After set up it's just the 5472 and 1120 to the IRS every year and the BOI as a one off (or whenever you change address).
And you dont even need to tell the IRS your PnL, just where you live, and how much you put in and took out of the LLC.

I think no jurisdiction beats the US in terms of costs and banking access. And the US is pretty good in ease of paperwork too. I used help the first year, but have been doing it myself ever since, it s a 20 min thing.

[Edit/Correction: Im used to New Mexico where there are no state forms, but many other states actually require an annual form (that is quickly done).]