Is USA the ultimate stealth offshore jurisdiction for non-US citizens?

[DavidS]

Register company in Delaware

Open account in Miami

Done deal.

They don't share info, they don't care. They want to become a tax haven.

What are issues with this?

 

[Mark Rucken]

It is hard to get bank account if you dont have SSN. Apart from that, no issues IMO.

 

[offshorebilly]

DavidS said:
Register company in Delaware

Open account in Miami

Done deal.

They don't share info, they don't care. They want to become a tax haven.

What are issues with this?
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I'm new and still tring to figure things out. Why Deleware and Miam?

I want to start a company somewhere with low taxes. I want it private. If I started a company in Deleware if the company actually grew, wouldn't the government audit me? Couldn't everything be taken away?

I know Deleware has good laws for corporations, but don't they tax a bit?

Also, why Miami?

 

[EuroKiss]

DavidS said:
Register company in Delaware

Open account in Miami

Done deal.

They don't share info, they don't care. They want to become a tax haven.

What are issues with this?
Click to expand...

Do not forget a LLC is pass-through, information is eventually shared with UK and EU, so it does not solve the tax residency. I currently have exactly this situation, but tax resident in a semi-offshore.

 

[Fothermucker]

EuroKiss said:
Do not forget a LLC is pass-through, information is eventually shared with UK and EU, so it does not solve the tax residency. I currently have exactly this situation, but tax resident in a semi-offshore.
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If the profits are kept in a US bank then it shouldn't be any problems.

 

[EuroKiss]

Fothermucker said:
If the profits are kept in a US bank then it shouldn't be any problems.
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Shouldn't be...but I won't feel so safe if i were from UK or EU (which from I actually am).

 

[Fothermucker]

EuroKiss said:
Shouldn't be...but I won't feel so safe if i were from UK or EU (which from I actually am).
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EU here and I know what you mean, at this moment US banks are not reporting but who knows what will they do in the future.

IRS has details on every foreign LLC owner...and nobody knows if they share this with EU/UK or don't.

@ OP
Why Delaware?

DE the most expensive option, 300$ annual state fee + registered agent fee

WY = 100$ annual filing fee + RA

NM = no annual fees or filing requirements, you just need to pay the RA.

WY & NM are anonymous just like DE😉

 

[EuroKiss]

Fothermucker said:
IRS has details on every foreign LLC owner...and nobody knows if they share this with EU/UK or don't.
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Rumors say banks share details, anyway when you invoice a US company usually they require a W-8 form with UBO to avoid US nationals tax fraud, so IRS is aware of your incomes and have enough data to deliver to EU or any other tax office in the world; of course if you sell to consumers such form is not required.

 

[DavidS]

Yeah WYOMING might even be a better choice.

So basically main fear is that if US is not sharing now, they WILL share in future?

What if you get second residency somewhere else and THEN open US company and get bank accounts and broker accounts in some third country?

Basically making the mess so convoluted and obstructive that tax man wouldn't bother even trying to find where to start...

 

[EuroKiss]

DavidS said:
So basically main fear is that if US is not sharing now, they WILL share in future?
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The million dollar question! 😀

DavidS said:
What if you get second residency somewhere else and THEN open US company and get bank accounts and broker accounts in some third country?
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It is NOT a second residency BUT your new residency.

DavidS said:
Basically making the mess so convoluted and obstructive that tax man wouldn't bother even trying to find where to start...
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Tbh, it depends how much you are earning - unless you are from US, IRS can go after you even if you owe them $1...

 

[DavidS]

EuroKiss said:
unless you are from US, IRS can go after you even if you owe them $1...
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What do you mean by this?

Do you mean IRS would go after US person?

Or IRS would go after non-US person?

 

[EuroKiss]

DavidS said:
What do you mean by this?

Do you mean IRS would go after US person?

Or IRS would go after non-US person?
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First one: “...unless you are from US..”

 

[Clip]

If your country is in this list, you are being reported
https://www.irs.gov/businesses/country-by-country-reporting-jurisdiction-status-table
As I'm HK resident, that's excluded from reporting, and even they do, it's not considered taxable here.

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Expat in Hong Kong - There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt. - John Adams

 

[DavidS]

GiGoGo said:
If your country is in this list, you are being reported
https://www.irs.gov/businesses/country-by-country-reporting-jurisdiction-status-table
As I'm HK resident, that's excluded from reporting, and even they do, it's not considered taxable here.
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This is being reported as per FATCA right?

Do they report brokers also or only banks?

 

[Martin Everson]

Fothermucker said:
EU here and I know what you mean, at this moment US banks are not reporting but who knows what will they do in the future.
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US not reporting? ns2

They have been reporting for years as part of FATCA bilateral agreement.

Martin Everson said:
---quote
Updated Oct. 2, 2015 10:27 p.m. ET

"The Internal Revenue Service has kicked off a new program under which it shares large amounts of individuals' financial-account information with certain foreign countries, the agency said Friday.

The IRS said it received digital information about U.S. taxpayers' foreign accounts from governments and firms around the world, and it sent information on foreigners' U.S. accounts to government authorities in as many as 34 countries. While governments have exchanged such information in the past, the sharing wasn't automatic and the scope was often far narrower. The deadline for the exchange to begin was Sept. 30.

According to the IRS, it will only share information with foreign countries which meet its “stringent safeguard, privacy, and technical standards,” and it has the ability to halt transmissions if it believes the standards aren't being met.

The IRS declined to say which countries received information from the U.S. This week, the agency added 16 new countries, including Brazil, South Africa and India, to the list of those already eligible to receive financial-account details.

The information exchanged typically includes the name, address, tax identification number, account number, account balance, and dividend and interest payments, among other things. This disclosure applies to accounts above a certain threshold."

Countries eligible to receive information from the IRS about their taxpayers' U.S. accounts:

• Australia
• Brazil
• Canada
• Czech Republic
• Denmark
• Estonia
• Finland
• France
• Germany
• Gibraltar
• Guernsey
• Hungary
• Iceland
• India
• Ireland
• Isle of Man
• Italy
• Jersey
• Latvia
• Liechtenstein
• Lithuania
• Luxembourg
• Malta
• Mauritius
• Mexico
• Netherlands
• New Zealand
• Norway
• Poland
• Slovenia
• South Africa
• Spain
• Sweden
• United Kingdom

--- end quote
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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Davis123]

Martin Everson said:
US not reporting? ns2

They have been reporting for years as part of FATCA bilateral agreement.
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Yes but people here are still not getting yeh message I think. Almost six years old already. Hmm. As I stated earlier USA is bad jurisdiction for keeping anything.

 

[fshore]

EuroKiss said:
Rumors say banks share details, anyway when you invoice a US company usually they require a W-8 form with UBO to avoid US nationals tax fraud, so IRS is aware of your incomes and have enough data to deliver to EU or any other tax office in the world; of course if you sell to consumers such form is not required.
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This is only for services, not for goods.
The companies don't automatically share this with irs.

The data irs can easily share is the data you submit on form 5472.

 

[fbsworld]

If you have an single-member US LLC, you have to fill every year this form: https://www.irs.gov/pub/irs-pdf/f5472.pdf
So you definitely have to submit detailed information about you and your transactions. Do not mixed the Registry and mandatory tax returns!

 

[Fothermucker]

fbsworld said:
If you have an single-member US LLC, you have to fill every year this form: https://www.irs.gov/pub/irs-pdf/f5472.pdf
So you definitely have to submit detailed information about you and your transactions. Do not mixed the Registry and mandatory tax returns!
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For f**k sake, things they want to know... So much for "USA the ultimate stealth location"
Nothing stealth about it

 

[Clip]

It's more stealth than others, but the days of bank/corporate secrecy are over.

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Expat in Hong Kong - There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt. - John Adams