Comments by "Jeremy Barlow" (@jeremybarlow2291) on "Why Tech Companies Don’t Need Silicon Valley" video.

  1. A Tiblisi fee zone company with common shares owned by the entrepreneur and preferred shares owned by an Antigua & Barbuda company looks like an interesting way to potentially avoid most taxes. It will cost a little over $5k a year in company fees and free zone license costs to keep the Georgian and Antiguan companies in good standing, but if you took a $12k a year salary from the Georgian Company, then depending on whether or not a non-resident employee of the Antiguan company is that same entrepreneur director of the Georgian Company could likely pay up to the limit the Foreign Earned Income Exclusion and it would likely cost about $8k or so to set up the structure. No one would think that the Antiguan company with a 25% corporate tax rate is saving you money, but if the Antiguan social security taxes don't apply even with annual licensing and company fees you are at 6% tax and with those Antiguan social security taxes you are still lower than just the US social security rate on a US based salary, like 12% overall, but I suspect the social security tax will not apply to such an Antiguan company. That requires more research. Of course anyone other than US taxpayers have less issues to think about here, but if structured properly an American can reduce their taxes a fair amount with this structure for a company that isn't a start-up, but isn't a really large enterprise yet either. I mean a blogger or online marketer with a solid low six figure business could save on tax while growing the company and saving up for an economic citizenship for example. Even though Georgia doesn't recognize the legitimacy of the old US-USSR Tax treaty, the US does, so operating servers through AWS won't create a permanent establishment in the US. Georgia's tax treaties with Ireland and Singapore allow a SaaS start-up to make use of AWS servers in those countries too and avoid a permanent establishment. Georgia looks very good indeed for a bootrapped start-up if you structure the company correctly and take advantage of it's free zones. If an American entrepreneur positioned themselves to be able to renounce US citizenship and travel on say a St. Kitts passport even, they could with a proper buy-sell agreement executed at the time of purchase between the Antiguan company and the Georgian Company reacquire the preferred shares and close down the Antiguan company. If the company became a big success and the entrepreneur was earning more than $200k a year they could easily take advantage of short term stays in Georgia for the purpose of tax residency coupled to the permanent residency that should be available by operating their company to travel the world quite freely without too many tax concerns, except of course spending too much time in the wrong country. If they are staying in Malaysia, Thailand, the Phillipinnes, Panama, Costa Rica, Nicaragua, other territorial tax countries, or if they move to the Caymans, BVI, Anguilla, Antigua, the Bahamas or St. Kitts, their tax free lifestyle would be very easy to maintain. I mean once they have permanent residency in Georgia there is no reason to draw a salary when they can be paid tax free with dividends from a free zone company. Upon closer inspection the Antigua plan has a problem. That problem is the lack of deductibility of salaries.
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