US citizenship sucks, What is best for me to do?

[rydg187]

I run an online business (Digital marketing agency/business consulting), I am a US citizen however I am living as an expat in the Philippines on a tourist visa over 330 days a year and thus qualify for foreign earned income exclusion. The first $108,700 I will not have to pay federal income taxes on due to the FEIE. I also will not need to pay state income taxes because I have no tax home in any US state (And I never lived in the strict states like New Mexico, Virginia, South Carolina and California) I am certain I will have no state taxes due under FEIE.

I will however need to pay 15.3% Self employment taxes :IE FICA and medicare taxes.

However if I form an offshore corp I can avoid the 15.3% Self employment taxes :IE FICA and medicare taxes.

I am aware as an American I must pay taxes on my worldwide income and that the days of simply deferring taxes in an offshore account are long gone. I am aware I must report my offshore accounts via FBAR and FATCA. I am aware any amount of money earned over the $108,700 FEIE limits will be taxed for federal income taxes.

I have very little options as a American Citizen besides renouncing my US citizenship or stocking up on extra KY jelly so it wont hurt so bad when uncle sam bends me over and rapes me come tax time.

So my question is where can I set up an offshore corp and send and receive visa and mastercard payments for my business while keeping my hard earned money safe from frozen accounts and endless requests for supporting documents etc? It seems this is the only thing I can do unless someone can share some infomation with me.

I suppose I can use darks with an EMI but I cant risk losing money, I been reading the forum, I suppose Wise or advcash will work. I already have a personal account at Wise.

I can also accept crypto payments directly and use monero and bitcoin mixers and DEX's. But most of my clients have just enough knowlege to barely know how to send an email they will not know how to send a crypto payment.

My goal is to keep as much of the money I earn while being able to send payments via debit card and accept payments via credit/debit using an offshore corp.

I feel like I am missing something obvious..... Any help is appreicated.

Last edited: Dec 27, 2021

 

[Sols]

rydg187 said:
So my question is where can I set up an offshore corp and send and receive visa and mastercard payments for my business while keeping my hard earned money safe from frozen accounts and endless requests for supporting documents etc?
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You'll need to go back at least 10 years into the past. Due to FATCA, as soon as someone catches wind there's a US person involved, what you do will end up reported. Add to that vastly increased compliance in general, and the days of moving money around internationally without risk of frozen funds and without risk of having to show source of wealth, source of funds, and other due diligence are long gone.

You can go the route of synthetic or stolen identities ("darks"), but all you're doing is adding wire fraud and money laundering to your activities, which if/when the structure blows up takes you from mere tax crimes (which depending on their severity can be negotiated down to fines/penalties, maybe some symbolic prison time) to a long-term rent-free stay in prison. That is if the bank/EMI doesn't just freeze your account before then.

There are ways to accept payment in fiat (i.e. debit/credit cards) and receive settlements in crypto from the PSPs. These are normally used to avoid anti-gambling regulations and such and usually cost quite a lot. But it could be a way to let your customers pay how they prefer while you end up with crypto. The same problem occurs, though: what you're doing is illegal by not reporting/paying taxes, and now you're adding money laundering et cetera on top.

The root cause is the US citizenship. You're toxic goods and need to completely remove yourself or your US citizenship from the equation.

Renouncing citizenship is a big decision that should not be taken lightly, but it is an option. You can acquire other citizenships in somewhat decent jurisdictions for at around 500,000 USD and upwards.

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This is the probably the answer to your question.

 

[rydg187]

Sols said:
There are ways to accept payment in fiat (i.e. debit/credit cards) and receive settlements in crypto from the PSPs. These are normally used to avoid anti-gambling regulations and such and usually cost quite a lot. But it could be a way to let your customers pay how they prefer while you end up with crypto. The same problem occurs, though: what you're doing is illegal by not reporting/paying taxes, and now you're adding money laundering et cetera on top.
Click to expand...

Thank you for your reply, people in the Philippines say I am lucky to be American from where their point of view I suppose they are right, from my point of view it feels like a curse LOL stupi#21stupi#21

I intend to pay taxes on any amount above the FEIE limit. However what are the ways to accept credit card payments from my clients while using a offshore corp. At the very minimum I want an offshore corp to avoid paying the 15.3% Self employment taxes :IE FICA and medicare taxes. Then I will only have to pay taxes on any amount above the FEIE limit.

 

[suzy]

UK LTD or other EU company with office address and substance, using payment processors you find in the resource
https://www.offshorecorptalk.com/resources/categories/payment-service-provider.4/
easy task to do.