asked

I want to set up a website to sell services to US customers. Which corporation configuration would maximize tax savings: 1. Incorporate at an offshore location like the Cayman Islands and set up a US subsidiary, or 2. Incorporate in a corporate-friendly US state like Nevada and set up a controlled foreign company in the Cayman Islands? Additionally, will revenues earned by the non-US entity be subject to US corporate income tax, and if the corporation distributes dividends to US shareholders, will they be subject to personal income tax? If the company is sold, will US shareholders be subject to capital gain tax? Are these options viable, and if so, which is better for tax savings, or is there another option to maximize tax savings?

January 2nd, 2023

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