Accept payments with new company in a few weeks

[cyazgan]

I need to establish a company in a tax effective way, ideally unanimous and start accepting and making payments in the next few weeks so need fast solution.

I am US resident, have a company in Turkey. I started doing citizenship by investment for Turkish properties.

I got my first couple of sales, much sooner than accepted so I am caught off guard . I need to invoice the developer for $50,000 and make referral payments to a UK referral agent. The service was for international buyer buying property to get Turkish passport. However, value added tax is 18% if I use my Turkish company and tax rate is another 25% and then I need to sort out US tax different since I am US tax resident. Giving an invoice from my Turkish company does not make tax sense, so got to find offshore solution or establish as US LLC and invoice from there; but offshore is better for obvious reasons if I can do it in time. This is not a service for US either, so no logic to do this from a US company, do you agree?

Since I am in the US, ideally need remote company formation and bank account opening and best tax management. I can travel to a nearby destination if in person makes things faster. I am also looking to invest in the stock market or bitcoin with the profit I have parked at the offshore company and be able to use the funds later for real estate purchases or school tuition payments.

Appreciate any guidance!

 

[Sols]

What benefit do you seek from doing it offshore as opposed to a local US company? Tax burden is going to be the same in the end, and you can probably get a company and bank account set up in a matter of days.

Opening a company is fast (a few days if you have your KYC ready to go), but banking is going to take weeks, possibly months. A faster, interim option might be to use an escrow to hold the funds while you open an account.

Many jurisdictions and banks especially put up extra barriers for Americans. As an American, I'd suggest Cayman Islands first and foremost, and Saint Kitts and Nevis and BVI second. Banks and service providers there are a little bit more comfortable with Americans in general than many others.

Can also try Isle of Man and Channel Islands. Banking tends to be easier to arrange there.

There are a few higher end service providers that would be suitable for this. Speak with to the likes of Appleby, Walkers, Conyers, Maples, and Vistra. You'll want this set up with someone who understands the laws and tax implications, not just an incorporation mill that throws you to the wolves after you got your company.

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This is the probably the answer to your question.

 

[cyazgan]

Thank you. I was asking about offshore because I thought that offshore would be more anonymous for the US and I can delay the tax payments or reduce my tax burden.

I am a Turkish citizen living in the US, not an American; but US resident for tax purposes. Would this change anything for not getting as many barriers applied to Americans? I can use my Turkish passport and residence in Turkey.

I also heard about already established companies we can take over at offshore. Would they come with bank accounts? Would you recommend this route?

If I decide to go with US company and bank account due to time issue or not seeing much benefit from offshore if too much risk, is Delaware the best option? I live in Florida but can get a virtual mailbox and registered agent to open an LLC in Delaware.

Thanks!

 

[Sols]

cyazgan said:
Thank you. I was asking about offshore because I thought that offshore would be more anonymous for the US and I can delay the tax payments or reduce my tax burden.
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No change to your tax bill. Offshore is as secretive as ”” or less secretive than ”” for example Wyoming, Delaware, or New Mexico LLCs.

cyazgan said:
I am a Turkish citizen living in the US, not an American; but US resident for tax purposes. Would this change anything for not getting as many barriers applied to Americans?
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It's better but you're still a US person as defined in FATCA by being US resident. It's not a huge obstacle, but it does limit your options.

cyazgan said:
I can use my Turkish passport and residence in Turkey.
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Don't lie to banks. If/when they find out you deceived them, that's a sure fire way to get your accounts terminated and funds frozen pending a court order to release them.

cyazgan said:
I also heard about already established companies we can take over at offshore. Would they come with bank accounts? Would you recommend this route?
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Shelf companies speed up the incorporation process by bypassing it entirely. Account opening is the same in either case. Once ownership of the company changes, the bank will repeat KYC and treat it as a brand new application.

cyazgan said:
If I decide to go with US company and bank account due to time issue or not seeing much benefit from offshore if too much risk, is Delaware the best option? I live in Florida but can get a virtual mailbox and registered agent to open an LLC in Delaware.
Click to expand...

I'm careful about throwing around words like "best" and "recommend" because they imply someone has studied your situation in detail and come to an informed conclusion. However, Delaware is popular for good reasons, as are Wyoming, Nevada, and New Mexico. In addition to plenty of literature available online that discusses and compares them, have a chat about your options with a local attorney.

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This is the probably the answer to your question.