How To End Up Paying Less Taxes To The US Government
David Ward is an instance of an entrepreneur who is a web designer and owns a company for online retailers called Meticulosity who left the US. There are many American business owners who have relocated in order to shift their business or start new ones to places which are more tax friendly such as areas in Belize and Bermuda.
There are fiscal paradises where more than eleven trillion dollars can be held in offshore accounts and the tax policies are less severe for the businessmen.
However, before you decide to move your business from this country to another, you need to seek the advice of a tax lawyer. On many occasions, there are advantages of relocating that is linked to the kind of industry you are in or the kind of workers you are looking for. In many occasions entrepreneurs have refused to take up the US citizenship so that they do not need to pay big taxes but there are other ways too.
In the above example, Ward made no change his citizenship and the business he ran in the US was in the nature of a limited liability corporation. His earnings were considered as earned income of foreign origin and thus, the taxes that he was liable to pay to the US were less by forty percent than US citizens and he did not have to give away half of his profits to the internal revenue service. There are disadvantages of living in another country and having a business in the US such as spending on the travel as well as paying higher prices for food or housing in the tropical areas but these were again compensated by the beautiful nature of the paradise and the gains from the business.
Entrepreneurs face another problem and that is delayed in the small businesses which will remain inoperable for few months during the process of relocation but the amount saved on taxes will make the move profitable in the long run. You will simply need to pay taxes in the country that one lives in and enjoy all the social benefits that the country provides while one pays taxes only on the investments by refusing US citizenship.
The real problem that the entrepreneurs are liable to face is a problem of poor infrastructure such power blackouts and other associated problems for which they will have to spend a little more on infrastructure and facilities. The benefits that one will get will make up for all these limitations though.