Rethinking corporate structure

[JustAnotherNomad]

That's why i involved Canada in the equation from the beginning.

But it's no different with the Canadian branch. There will be tax in Canada.

 

[Marzio]

But it's no different with the Canadian branch. There will be tax in Canada.

I still think there's more to the extra provincial corporation thing.

Ok the article i linked contained some errors mentioning one time that EPC is a branch and a second time that's a subsidiary but it clearly said that EPC was tax free.

OP lawyer confirmed that the setup is tax free but not worth the hassle.

Ok "maybe" it's not worth the hassle for him but why he confirmed that it can be tax free?

Are both the author of the article and the lawyer full of it?

 

[JustAnotherNomad]

It's tax free like a US LLC is "tax free". Once you live in the US or have employees there, it's no longer tax free.
And if you don't it's just taxed as if it didn't exist - doesn't mean it's tax free, just the branch part is only taxed on local income.
That's how branches work. Same thing with e.g. a Swiss branch of a foreign company.

 

[Marzio]

just the branch part is only taxed on local income.

The point is that in the article the author explicitly states that you can overcome the problem of having invoices accepted since those are coming from the Canada EPC.

Branches are taxed on local income because we all suppose that are used to serve the local market and if you invoice an international customer through the branch it should be taxed as local soured income.

I know that.

The fact that the author wrote an article stating that in Canada doesn't work that way piqued my interest.

There are some peculiar setups like the resident non domiciled companies in Malta that aren't talked about that much and you can only discover by going deep into the rabbit hole.

I thought EPC could be something like that because after reading some articles about it i still don't understand WTF is it. It's not a branch, it is something that a company that wants to operate in a Canada provice must do BEFORE registering a branch or a subsidiary.

It is more like a license to operate in the province of your choice.

It's someting peculiar to Canada as i never heard this requirement in any other part of the world so maybe there's an advantage hiding there.

 

[marct]

After discussion and much debate, I think I’m going to go simply a WY LLC for operating, and either a DE LLC for holding assets or Seychelles/KY LLC under a nominee for holding assets — unsure the best approach currently. The holding company would never have a bank account (it would just hold crypto, assets).

 

[EliasIT]

company would never have a bank account (it would just hold crypto, assets).

As soon as we talk about exclusively dealing with crypto in a company, things become significantly easier to handle concerning the requirements you mentioned.

 

[marct]

As soon as we talk about exclusively dealing with crypto in a company, things become significantly easier to handle concerning the requirements you mentioned.

How so?

 

[daniels27]

How so?

You just hide and don't pay any tax.