Recommendations for offshore company

[harry1995]

Hi Guys,

Looking for advise while doing some research.

I'm a British resident with currently a UK LTD company selling vintage American cars online. I have a storage yard in the USA but not run through a permanent establishment, so no US tax payable.

None of my income comes from the UK (50% is USA other 50% is rest of the world Asia, South America etc.

For tax purposes I was looking at starting an LLC, but as the UK does not class this as a pass-through entity, it would confuse the matter so I'm looking for advice of where I could stop an offshore company to minimize company corporation tax, which is 25% in the UK right now

 

[koohl]

You want to relocate if you want to avoid taxes! Or you want to find a very good tax lawyer and advisor that is able to help you structure your business to reduce taxes.

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[Martin Everson]

@harry1995 Please in future make the topic title relevant to the subject your discussing...thx

I have changed it to "....offshore company".

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

 

[CyprusLawyer101]

From your description it appears that you have US Tax exposure.

 

[harry1995]

CyprusLawyer101 said:
From your description it appears that you have US Tax exposure.
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I don't operate a permanent establishment in the US.

koohl said:
You want to relocate if you want to avoid taxes! Or you want to find a very good tax lawyer and advisor that is able to help you structure your business to reduce t
Click to expand...

My personal income tax in the UK is a given and im ok with that. It's just the corporation tax I'm looking for more effective way

 

[CyprusLawyer101]

harry1995 said:
I don't operate a permanent establishment in the US.


My personal income tax in the UK is a given and im ok with that. It's just the corporation tax I'm looking for more effective way
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My understaning is that you maintain a warehouse on US soil. You also have 50% of your sales in the US. The likelyhood of you creating a permanent establishment or having effectively connected income is very high. Of course this is a question for a US tax advisor, whom if you have consulted then you should be good to go.

 

[harry1995]

CyprusLawyer101 said:
My understaning is that you maintain a warehouse on US soil. You also have 50% of your sales in the US. The likelyhood of you creating a permanent establishment or having effectively connected income is very high. Of course this is a question for a US tax advisor, whom if you have consulted then you should be good to go.
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It's purely for storage so it's not classed as a permanent establishment. I have a US tax advisor and I've been filing US accounts for the limited company with the IRS for a few years

 

[CyprusLawyer101]

harry1995 said:
It's purely for storage so it's not classed as a permanent establishment. I have a US tax advisor and I've been filing US accounts for the limited company with the IRS for a few years
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Did your tax advisor confirm there is no effectively connected income?

 

[harry1995]

Yes because it's not a permeant establishment and the US has a tax treaty with the UK

 

[harry1995]

Any advice on where I could efficiently start a company overseas, which has a predominant non-establishment income from the US and Asia

 

[rdec237]

harry1995 said:
Any advice on where I could efficiently start a company overseas, which has a predominant non-establishment income from the US and Asia
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Switzerland could be good and credible and tax 11-13%. There's a couple of things to have in place, am based locally and have good accountant and lawyer contacts, feel free to DM