UK resident with clients in the US. What the best setup for a dual citizen?

[saintjohnny]

Yup, that's it. So after 3 years 1. I will save a lot of money,⁤ and 2. become liable for tax personally, but not the UK LLP.

On another note,⁣ I was looking into the option of forming my new UK LLP with my UK⁢ LTD as a partner - But, wouldn't that make the LLP liable for tax in︀ the UK since my partner, the LTD company, is considered a UK resident?

 

[CaptK]

If the LTD is purely a partner with no profit share then it would file‌ dormant accounts it doesn't matter that you own it.

 

[JustAnotherNomad]

Did you verify this with a DR lawyer? Especially since the LLP is‍ viewed as a pass-through entity in the UK.

 

[saintjohnny]

Partnerships are treated as‍ a corporation, there is no distinction unlike in the UK, US, etc.

 

[JustAnotherNomad]

Jackpot!

 

[saintjohnny]

Oh yes.

 

[Marzio]

While you do‌ so could you please let us know if is it really possibile to apply for‍ citizenship after only 2 years of permanent residency? I found that you can only do⁠ so after living there for 182+ days in a 7 years period.

 

[saintjohnny]

No clue as I was born a citizen but⁤ I believe you're correct on the 2 years of residency.

 

[Marzio]

I contacted @CaptK via PM to have more information about the DR citizenship after 2‌ years of permanent residency because online i found a totally different story.

I guess you are still‍ in DR, right? Since you are in the process of getting a DR passport could⁠ you please ask someone in the know how many years of permanent residency are required⁤ before getting the citizenship? Thanks

 

[CaptK]

Hi Bud,

Let me find it again it was a couple years back its only when @saintjohnny started the discussion it reminded me.
Give me a nudge by Monday if you dont hear⁤ from me.

 

[saintjohnny]

Hi Marzio. I⁤ couldn't find that first-hand experience. I just went to the passport office and they don't⁣ have any information on naturalization. Sorry I couldn't be of any help.

 

[Marzio]

@saintjohnny have you formed your DR SRL? Can you share what are the costs involved?‌ 🙂

 

[CaptK]

I couldn't⁢ find it but its not that hard to register a a company but I think︀ there is some minimum capital or something to do.
Get a local partner or nominee︁ similar to BVI and Cayman and you should be fine.

 

[Marzio]

Do you confirm this is also valid for a Dominican resident that's a member in⁤ a LLP?

 

[saintjohnny]

Hi Marzio, around $400 USD for all.

 

[Marzio]

@saintjohnny can you please clarify something? If after 3 years‍ you will become liable for tax personally but not the UK LLP, does this mean⁠ that if you transfer money from the UK LLP bank account to your personal bank⁤ account in Santo Domingo you will get taxed? Also, if you are a Dominican Republic⁣ tax resident do you need to declare to tax office that you own an offshore⁢ company or that you have a offshore bank account? Thanks i'm becoming more and more︀ interested in this Dominican Republic setup.

 

[saintjohnny]

I suppose you will get taxed if you transfer︀ from your LLP to your personal bank account in Santo Domingo. I'm not opening a︁ bank account in DR so I wouldn't know.

From my understanding, you do not need︂ to declare to the tax office that you have an offshore company or bank account.︃ But I could be wrong. I'm not a tax advisor but I can recommend you︄ one via PM.

 

[Marzio]

Correct me if i'm wrong: you are going to become tax resident in DR while‌ managing your offshore UK LLP tax free. You will only use UK LLP's bank account‍ and cards so that money never reach DR hence you will never pay any taxes⁠ there. Do i understand it correctly?
What i don't understand is what are you going⁤ to use the DR SRL for? Your answers can help me a lot in deciding⁣ what should i do, thanks!

 

[saintjohnny]

Yes, I will only use⁢ my LLP's bank and cards. DR SRL is just there in case I need it︀ for anything.

 

[saintjohnny]

Do you think I would even have to live⁣ in DR for the 182 days to be considered tax resident in the DR? I'm⁢ a DR citizen.

Thoughts?