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Offshore us corp tax responsibility

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pmaura

Junior Member
Here is my question. I would like to form an offshore company lets just say in the Bahamas. I would have all my consulting income run through this corp so as not to pay any US corp taxes.

Now being a US citizen I do understand I will still be subject to paying income tax above a certain amount. But is what I want to do legal for one and the revenue itself will be generated by companies outside the us. So if all the revenue is coming from out side the U.S. can I form a US company that is extempt from taxes?
 


seniorjudge

Senior Member
pmaura said:
Here is my question. I would like to form an offshore company lets just say in the Bahamas. I would have all my consulting income run through this corp so as not to pay any US corp taxes.

Now being a US citizen I do understand I will still be subject to paying income tax above a certain amount. But is what I want to do legal for one and the revenue itself will be generated by companies outside the us. So if all the revenue is coming from out side the U.S. can I form a US company that is extempt from taxes?
If you do not follow the rules of this forum, no one will answer your questions.
 

pmaura

Junior Member
Is asking about offshore tax treatment against forum rules? What did I do wrong is this just for state taxes?

Otherwise I am currently in NC if the problem is I forgot to say what state I am in.
 

abezon

Senior Member
If you understand that all US citizens pay taxes on worldwide income, why would you think that a US corporation would not have to pay taxes on worldwide income? The only way for a corp to avoid US taxes is to be a foreign corp that doesn't work in the US.

Even then, you'd have to disclose personal ownership of a foreign corp, and the IRS would examine things carefully to see if you were trying to use the foreign corp to avoid US taxes. If the IRS decides that's your motive, they will disregard the foreign corp & tax all the income anyway.

If tax avoidance is really that important to you, you'll need to crank out some significant cash to hire a good tax attorney to help you set things up properly. Unless your consulting income is gonna be quite high, it woll probably cost more in attorney fees than the tax bill itself.
 

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