Quote: (08-21-2017 09:59 PM)Captain Gh Wrote:
Man focus on Maintaining & Growing your Biz... and let a Tax pro handle that for you!
This advise if gold ... an excellent thing to do to avoid (never evade) taxes is to spend the profits into the company itself; thus growing. Start paying taxes only when you are doing the big money.
Quote: (08-21-2017 08:56 PM)GyopoPlayboy Wrote:
Quote: (08-21-2017 08:32 AM)Plus Oultre Wrote:
This is one of those questions where you seek advise on how to break the law. I strongly recommend staying out of any such scheme. Funnel your energy on beating the system legally and not on enticing fellow forum members on writing next "how to land in jail datasheet"
So I'm curious...what do you call what companies like Apple, FB, and Google are doing when they set up subsidiaries in countries like Ireland, Jersey, Belize, etc. through which they funnel their profits so that they end up paying next to nothing on their taxes back home in the US?
I guess that's "beating the system legally" to you, huh?
Companies and individuals are two different animals. A company such as apple has investors shareholders, those are the owners and they are responsible for their own personal income tax, just like you. So let's say you have a share of Apple, you receive dividends => you pay taxes if applicable; you sell your share and make a profit => you pay your taxes if applicable.
As a not perfect analogy I will try to explain the case of Apple. What Apple did was to have a child in another country, a child with the citizenship of that other country. That child pays income tax in its country of birth, which happens to have a lower tax rate than that of the father. Well, the case is very simple but I hope it shows the basic idea. Apple US, still pays income tax for its US operations.
In your case, you can renounce your citizenship and adopt that of another country. US citizens are taxed on worldwide income. With planning, there are ways to minimize the impact of taxes. Is your company based on the US? What type of company you have (LLC, C Corp, S Corp)? Do you have partners?
"A human being should be able to change a diaper, plan an invasion, butcher a hog, conn a ship, design a building, write a sonnet, balance accounts, build a wall, set a bone, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, analyze a new problem, pitch manure, program a computer, cook a tasty meal, fight efficiently, die gallantly. Specialization is for insects."
— Robert Heinlein