I wonder, if this is just a BLACK OUT of my thoughts... a SYSTEM ERROR, or a MODEL that is totally fine and shouldn't run into any tax issues.
Description:
I wonder why so many small business entrepreneurs are so worried about paying taxes on their private income.
I wonder, why you don't want to keep all your money within the company, pay everything from the money of your company, live and benefit from the wealth of the company and DO NOT pay any profit to yourself.
I REPEAT... what if you DO NOT PAY any profit to yourself ? Not through employment, and not through dividends. Not one single Dollar that is going to be transferred to your private bank account. NOT ONE SINGLE DOLLAR that is going to be payed into your private pocket.
Let me try to explain MY MODEL in more detail.
EXAMPLE / FACTS:
- you own a company as a shareholder (sole 100% is yours)
- the company (C/Corp Structure Inc.) is based in a country that has 0% taxes on corporation taxes
- the company itself renders no service in the US and has zero links to the US
- the company DOES NOT PAY the shareholder any dividends
- the company DOES NOT PAY the owner any paystubs (not employed)
NOW... let's take a minute and think about that setup. Nothing special, just a regular 100% LEGAL setup of a company structure, that creates profit outside the US.
Your Questions:
- how can you pay for all your private expenses if you don't have any income ?
- how can you cover all your private costs of living if you don't get any dividends payed ?
My answer/idea and thoughts and facts:
- The company is incorporated outside the US
- all service is rendered outside the US
- all profit is made outside the US
- a tax report is not even necessary and not mandatory since it's based in a country that has zero % on corporate pofits
The OWNER of the company can invest in estates he likes. He can buy what ever he want's to buy in the name of the Corporation.
In fact, he could blow all the money on a big party without reporting to any government or tax departments explaining losses or profits.
The Corporation can buy Real Estate in the name of the company.
The Company can also wire money for rent through online banking, can cut checks and can even have a debit or credit card to buy what ever the corporation want's to buy.
NOW.... knowing that fact... and yes, there is ABSOLUTELY NO LAW in the world, that doesn't allow a company to own what ever the company want's to own... WHY NOT KEEPING ALL THE WEALTH WITHIN THE COMPANY ?
If I am living in a house that is owned by the company.... so be it.
If the company pays rent for an apartment I would live in... what's the problem ?
The company takes care for your car payments, or even posses a car. The company can also pay for Food.. well, literally for everything.
I know.. at this point.. I got immediately confronted with the argument that the IRS could see the rent payments, food payments, gas payments, or what ever payments the corporation is executing... as part of an INCOME - or hidden income.
But again... why should the IRS even be interested in that, if you don't even have to report to the IRS ?
Remember, the Corporation that pays or owns property in the US is a foreign Corporation.
And again.. that corporation can do with it's money whatever the company decides to do.
It could even invest all it's money into stocks.. losing all of it.. or making even more profit...
But the profit the corporation makes.. stays untouched since the all corporation profit has zero % business income tax.
Sooo.. let's keep in mind... it's a fact, that Corporation does NOT EVEN EXIST for the IRS because it's outside the US.
That corporation only spends money inside the US, helps to drive the economy buy buying goods in the US.
And again... NO profit is accumulated within the US.
Sooo... now.. let's leave it by that for now.
I wanted to hear everybody's opinion on that !
Again.. I can die as a poor man... I don't need any wealth in my private account.. as long as I own the company - it doesn't really matter.
And as far as I understand.. Warren Buffet and/or Bill Gates handle it the same.
Your wealth is measured by the wealth of your ownership of corporations !
I am really curios about your thoughts, opinions, hints, tips and recommendations.
Thank you very much !
ps: I am not a US Citizen... I am member of the European Union with a Permanent Residency in the US
Description:
I wonder why so many small business entrepreneurs are so worried about paying taxes on their private income.
I wonder, why you don't want to keep all your money within the company, pay everything from the money of your company, live and benefit from the wealth of the company and DO NOT pay any profit to yourself.
I REPEAT... what if you DO NOT PAY any profit to yourself ? Not through employment, and not through dividends. Not one single Dollar that is going to be transferred to your private bank account. NOT ONE SINGLE DOLLAR that is going to be payed into your private pocket.
Let me try to explain MY MODEL in more detail.
EXAMPLE / FACTS:
- you own a company as a shareholder (sole 100% is yours)
- the company (C/Corp Structure Inc.) is based in a country that has 0% taxes on corporation taxes
- the company itself renders no service in the US and has zero links to the US
- the company DOES NOT PAY the shareholder any dividends
- the company DOES NOT PAY the owner any paystubs (not employed)
NOW... let's take a minute and think about that setup. Nothing special, just a regular 100% LEGAL setup of a company structure, that creates profit outside the US.
Your Questions:
- how can you pay for all your private expenses if you don't have any income ?
- how can you cover all your private costs of living if you don't get any dividends payed ?
My answer/idea and thoughts and facts:
- The company is incorporated outside the US
- all service is rendered outside the US
- all profit is made outside the US
- a tax report is not even necessary and not mandatory since it's based in a country that has zero % on corporate pofits
The OWNER of the company can invest in estates he likes. He can buy what ever he want's to buy in the name of the Corporation.
In fact, he could blow all the money on a big party without reporting to any government or tax departments explaining losses or profits.
The Corporation can buy Real Estate in the name of the company.
The Company can also wire money for rent through online banking, can cut checks and can even have a debit or credit card to buy what ever the corporation want's to buy.
NOW.... knowing that fact... and yes, there is ABSOLUTELY NO LAW in the world, that doesn't allow a company to own what ever the company want's to own... WHY NOT KEEPING ALL THE WEALTH WITHIN THE COMPANY ?
If I am living in a house that is owned by the company.... so be it.
If the company pays rent for an apartment I would live in... what's the problem ?
The company takes care for your car payments, or even posses a car. The company can also pay for Food.. well, literally for everything.
I know.. at this point.. I got immediately confronted with the argument that the IRS could see the rent payments, food payments, gas payments, or what ever payments the corporation is executing... as part of an INCOME - or hidden income.
But again... why should the IRS even be interested in that, if you don't even have to report to the IRS ?
Remember, the Corporation that pays or owns property in the US is a foreign Corporation.
And again.. that corporation can do with it's money whatever the company decides to do.
It could even invest all it's money into stocks.. losing all of it.. or making even more profit...
But the profit the corporation makes.. stays untouched since the all corporation profit has zero % business income tax.
Sooo.. let's keep in mind... it's a fact, that Corporation does NOT EVEN EXIST for the IRS because it's outside the US.
That corporation only spends money inside the US, helps to drive the economy buy buying goods in the US.
And again... NO profit is accumulated within the US.
Sooo... now.. let's leave it by that for now.
I wanted to hear everybody's opinion on that !
- What do you think about it ?
- Do you think this idea/thought is not correct ?
- Do you see any concerns/issues ?
- Any answers to WHY NOT doing it like that ?
Again.. I can die as a poor man... I don't need any wealth in my private account.. as long as I own the company - it doesn't really matter.
And as far as I understand.. Warren Buffet and/or Bill Gates handle it the same.
Your wealth is measured by the wealth of your ownership of corporations !
I am really curios about your thoughts, opinions, hints, tips and recommendations.
Thank you very much !
ps: I am not a US Citizen... I am member of the European Union with a Permanent Residency in the US
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