Comments by "Jeremy Barlow" (@jeremybarlow2291) on "How to Pay Zero Taxes with an E-Commerce Business" video.

  1. It's possible for a US person who has renounced US citizenship -preferably obtaining another citizenship first, if they hold a college degree, I would highly encourage a CBI in one of the OECS countries then using their membership in Caricom to obtain a skilled worker certificate to secure freedom of movement rights in Barbados, Belize, Trinidad & Tobogo and other Caricom countries. If that US person is a permanent resident of the US or a temporary worker under an H1B or similar visa, then by ending their residential connection with the US to use a US based LLC -preferably in one of the state corporate & income tax free states, Wyoming, Texas, Washington, Nevada for example, and have a tax free operation, if they live in the right country as a tax resident, and manage the company ie hold formal annual board meetings in the right country or countries. I suggest the Caricom citizenship because under the US-Barbados tax treaty, holding a board meeting for a US organized company in Barbados doesn't make a company tax resident in Barbados. As long as there are no employees or contractors in the US, legal precedent in the US does not make this pass through entity subject to US tax, necessarily. Under the US-USSR tax treaty which the US recognizes, but Georgia does not, the tax rate on even royalties from a US business to Georgia is a 0% withholding rate. A company not managed and controlled or organized in Georgia with no permanent establishments in Georgia is not subject to tax in Georgia under Georgian law currently. A high networth individual with $3 million in assets or over about $65k a year in income for the last three years who owns requisite property in Georgia and has a residency permit due to that property ownership can avail themselves of tax residency in Georgia by not being tax resident elsewhere and proving they have a high networth and maintain residency in Georgia. This would give a digital nomad the ability to move rather freely. The republic of Georgia does not tax individuals on offshore income. The US tax resident company per the US-Barbados treaty as a pass through entity under US law would only be taxable in Georgia under current US law if the pass through owner was tax resident in Georgia. In this instance, even royalty payments typically subject to a 30% withholding rate in the US would have a 0% withholding rate under the US-USSR treaty which the US recognizes and as the owner & not the company would be considered the owner of the royalties, even some of the most difficult income to extract from the US tax free could pass tax free to a Georgian resident through this US LLC. So long as a digital nomad in this scenario did not become tax resident elsewhere, by holding annual board meetings for the US LLC in Barbados, it would not be taxable in Barbados under the treaty or Georgia under Georgian law, but would be a foreign company as a US LLC. It would still have nonresident reporting requirements to the IRS, but should not be a taxable entity, and as long as the nomad does no work in Georgia, they should not be taxable on the company profits in Georgia either. The US LLC provides fairly easy access to good online transactional banking for an operating company and a Wyoming LLC provides strong asset protection both against liabilities of the company to the owner, and liabilities of the owner in regards to assets of the company with charging order protection. This means if the owner got into a car wreck in a country where that being their fault could be costly, it would be almost impossible for a judgement creditor whose claims exceeded the nomad's liability insurance to liquidate the LLCs assets. I bring this up, because it always makes me laugh that a US LLC is one of the best tax haven assets in the world for people who are not US citizens if they plan how to use it correctly. In terms of US citizens reducing taxes, a C or S Corp or a foreign corporation in a zero tax jursdiction where economic substance requirements are not an issue with proper use of foreign residence exclusion, foreign earned income exclusion, per diems, health insurance deductions, health savings accounts, IRAs and 401(k)s, along with travel expenses can get a US taxpayer north of $200k a year tax free. The combination of a US C or S Corp with the right zero tax foreign entity as a subsidiary using a check the box election can be useful -if you can get banking for that zero tax entity. The recent introduction of economic substance requirements in many zero or low tax jurisdictions to satisfy the OECD and avoid being blacklisted from participation in international bank clearing of transactions has made a lot of low or zero tax jurisdictions nearly impossible to use because bank accounts are hard to get, or economic substance requirements are costly to comply with in ways they did not used to be. There are exceptions, but if you want to be a nomad, then it is harder than ever before. The way around this is proper planning, structuring and use of the right entity types in countries that are not on any blacklists which are easier to secure banking for than headline rate zero tax countries.
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  2. As a C-Corp. I mean you can can sell up to $10 million of original issue 1202 stock in a C-Corp per year for tax free capital gains from such an entity. I mean grow your business, take all of the numerous tax deductions, especially the bonus depreciation and pay almost zero tax while growing the business and at most 21%. Go offshore and take the FEIE, foreign housing exclusion, per diems, use IRAs and 401(k)s and HSA, and expense tickets for travel to the company along with all of the other deductions not getting money out of the company tax free for you or at most subject to FICA, FUTA, and worker's comp fees. I mean you could get north of $200k a year or more even more if you are married out of a C-Corp mostly tax free while growing the company then sell that original issue stock as 1202 stock for up to $10 million and have a zero rate on the capital gains.
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  3.  @user-dy2qq5wh4b  Or go north to Washington. It works for Microsoft and Amazon.
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