Lifestyle/Location Independence, IBCs, Taxes, and Work Permits
I've been looking at the idea of setting up shop OUTSIDE the good ole US of A for a while, because A) I don't like the way things are headed in terms of the erosion of civil rights and B) I think the tax rate is lousy.
I know there are reports to file with the IRS when you have a controlled foreign corporation and signature authority on foreign bank accounts. As I understand it, most IBCs (international business corporations) CAN'T do business in their country of incorporation, and most countries require some kind of work permit or work visa for a foreigner to "work" in their jurisdiction. Also I understand the US lets people living and making money overseas earn a sizeable amount overseas WITHOUT having to pay taxes because you aren't living in America.
My question is how do people structure their businesses when they live in Mexico for 3 months, followed by the Philipines for 3 months, followed by Bermuda for 3 months, or Bali for 3 months?
I mean clearly you could set up operations so that you have one parent company in say the British Vrigin Islands that owns a subsidiary in the Seychelles to service your BVI customers and have bank accounts I'm many jurisdictions and have your servers in Panama the Bahamas, the Isle of Mann, or wherever to avoid issues with the tax man related to "doing business" in whatever high tax jurisdictions you want to avoid, and you could clearly draw a salary from this foreign entity and you could and would probably have some low wage employee in some no tax jurisdiction where you IBC actually physically conducts its business, but the question really is about where you as the entrepreneur are working and working papers.
I mean can you spend time writing a blog post or recording a podcast or creating a digital product for your IBC while you are technically a "tourist" in some nice corner of the Carribean "legally" can you make a phone call to your VA in the Phillipines WITHOUT working papers???
Is there anyone out there living "location independent" and actually doing this stuff who has an answer??
I know there are reports to file with the IRS when you have a controlled foreign corporation and signature authority on foreign bank accounts. As I understand it, most IBCs (international business corporations) CAN'T do business in their country of incorporation, and most countries require some kind of work permit or work visa for a foreigner to "work" in their jurisdiction. Also I understand the US lets people living and making money overseas earn a sizeable amount overseas WITHOUT having to pay taxes because you aren't living in America.
My question is how do people structure their businesses when they live in Mexico for 3 months, followed by the Philipines for 3 months, followed by Bermuda for 3 months, or Bali for 3 months?
I mean clearly you could set up operations so that you have one parent company in say the British Vrigin Islands that owns a subsidiary in the Seychelles to service your BVI customers and have bank accounts I'm many jurisdictions and have your servers in Panama the Bahamas, the Isle of Mann, or wherever to avoid issues with the tax man related to "doing business" in whatever high tax jurisdictions you want to avoid, and you could clearly draw a salary from this foreign entity and you could and would probably have some low wage employee in some no tax jurisdiction where you IBC actually physically conducts its business, but the question really is about where you as the entrepreneur are working and working papers.
I mean can you spend time writing a blog post or recording a podcast or creating a digital product for your IBC while you are technically a "tourist" in some nice corner of the Carribean "legally" can you make a phone call to your VA in the Phillipines WITHOUT working papers???
Is there anyone out there living "location independent" and actually doing this stuff who has an answer??
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