Living outside the US creates an awesome opportunity to own and operate your own location-independent business and pay no or very little tax. But actually understanding and implementing this opportunity can be difficult.
The Jungle Gets Thicker
Simply navigating the US tax rules as an expat or digital nomad is difficult enough. Then, once you start putting together your own location-independent business, the complications intensify.
Now you have all sorts of issues to figure out:
- Can I operate my business through a non-US corporation?
- If so, what’s the best jurisdiction in which to form my non-US corporation?
- How do I set up a non-US corporation without getting scammed?
- Can I still bank in the US?
- How can I open a US bank account under a non-US corporation?
- What are the exact US tax consequences of using this structure?
- How exactly do I operate a business under a legal entity?
- How can I invest for retirement ?
- How do I report all this on my US tax return?
- Will I still have to pay state tax?
- And what about non-US tax?
The Paths get More Treachorous
Let’s look at different ways to answer these questions.
The IRS provides absolutely no help at all. IRS Publication 54 doesn’t discuss which legal structures are best in particular situations, and of course the IRS can’t tell you how to form a non-US corporation. The IRS is just silent on all these issues.
Then, the internet is full of unreliable yammering about these issues. The nuggets of good advice are buried under so many layers of supposition and contradiction that it would take you hours and hours to find the gold. You’ll be so fed up at that point that you wouldn’t recognize it.
Also, the crocodiles are thicker and meaner in this part of the jungle. All sorts of “offshore gurus” and fly-by-night incorporation services are looking to sell you a useless and over-complicated structure at an exorbitant rate.
A Better Way
That’s why I created the Tax-Savvy Expat Entrepreneur course.
My first online course, Tax-Savvy Expat Essentials, shows you how the tax rules create the opportunity to own a location-independent business and pay no or very little tax. Now, Entrepreneur shows you exactly how to take full advantage of this opportunity.
Beyond just discussing the tax rules, your purchase of Entrepreneur also includes the initial fee for the legal structure discussed in the course (a Belize IBC plus a Wyoming LLC). Entrepreneur also provides:
- a step-by-step guide to actually creating the proper legal structure for your situation,
- direct links to the people and resources you need to form your legal structure, and
- the actual legal documents you need to get your legal structure together.
Plus, your purchase of Entrepreneur includes a half-hour consultation call. We’ll go over your particular situation and make sure you understand exactly how to move forward.
Entrepreneur is a complete actionable resource that contains everything you need to actually get your legal structure up and running in as little time as possible.
The course contains the same information I provide my clients and the same resources and legal documents I use to get the job done.
Who this course is for
Entrepreneur is designed to help digital nomads and expat entrepreneurs who own and operate a location-independent business.
You own a “location-independent business” when (i) you sell something other than your own time (such as other people’s time, physical or digital products, advertising space, or access to software) and (ii) you aren’t tied to an on-the-ground location in any particular country.
Common examples of location-independent businesses include the following:
- affiliate marketing,
- digital agency,
- web hosting,
- niche websites,
- ad-based internet publishing businesses (such as a blog, podcast, or YouTube channel),
- SaaS and SwaS businesses,
- e-commerce businesses (such as Amazon FBA, drop-shipping), and
- traffic arbitrage.
One caveat here: the legal structure discussed in Entrepreneur does not work for businesses with a US-based founder or that operate using employees or dependent agents located in the US. However, it’s perfectly fine to use the services of a third party running their own business in the US.
Here’s how it works
Entrepreneur consists of nine video lectures where I talk over professionally designed slides. The lectures total up to 1.5 hours (but you can speed up or slow down the playback if you like).
You have instant and continuous access to the whole course, so you can go back and review whenever you have a question.
Each section also has notes that provide additional detail on the subject matter of each lecture and contain links to the resources you need to organize your structure.
Then, when you purchase Entrepreneur, I’ll tell the Belize and Wyoming registered agents I work with that you’re on board. The course explains exactly how to complete the applications for your legal structure, gather the due diligence materials, and provide them to each registered agent. Then, your purchase of the course includes the initial fee for each legal entity; you’ll pay the annual fee for the IBC and LLC directly to each registered agent in subsequent years.
Finally, the actual legal documents you need are attached right in the part of the course where they’re discussed (so you have easy access to everything).
Table of contents
Here are the nine lessons that comprise Entrepreneur:
- Course Overview
- Tax-Savvy Expat Entrepreneur Structure: Introduction
- Tax-Savvy Expat Entrepreneur Structure: Formation
- Tax-Savvy Expat Entrepreneur Structure: Operation
- US Tax Consequences: Business Income
- US Tax Consequences: Investment Income
- US Tax Reporting and Accounting
- State Tax and Non-US Tax
- Next Steps
Invest in your success
You’ve spent time and money to figure out your business and increase your revenue, right? Well, plugging tax leaks in your legal structure is even more important.
It’s not just about the money you make, it’s about the money you keep. Investing in the right legal structure pays a return year after year by legally keeping more money in your pocket.
In fact, several of my students use what they learned in Entrepreneur to easily save $25,000 or more in tax, every single year.
Entrepreneur shows you:
How to minimize US federal income tax, US self-employment tax, state tax, and non-U.S. tax;
How to determine the best legal structure for your particular situation;
How to actually create that legal structure (with an easy step-by-step guide and the actual resources and legal documents you need); and
How to operate your business under that legal structure.
In addition to everything described above, your purchase of Entrepreneur includes a half-hour consultation. We can apply what you learn in Entrepreneur to your particular situation and make sure you have all the tools you need to get your own structure together.
The legal structure you put together after taking this course will pay you year after year in legal US tax savings.
Even beyond that, Entrepreneur really pays for itself immediately. Here’s why:
- you’ll save tons of time scouring the internet and talking with experts to figure this all out on your own;
- you’ll avoid the expensive and well-marketed entity formation services-easily saving you the entire cost of this course in your first year; and
- you’ll save the lawyer fees necessary to create the legal documents included in this course.
Also, as an added bonus, your purchase of Entrepreneur gives you free access to Essentials.
You could easily spend the cost of Entrepreneur just to form a Belize IBC, and that’s all you’d get. When you purchase Entrepreneur, not only are you paying the initial fee for a Belize IBC and Wyoming LLC, you’re getting all of the support and knowledge you need to properly set up and operate under your legal structure; you’re getting all the legal documents you need to put everything together correctly; and you’re getting a call with me so we can discuss your particular situation and make sure you have everything covered.
“Thanks for the great course. I loved how simple everything was to follow.”
“Wow, thanks so much for putting this course together! I was going crazy trying to figure this all out on my own, I wish I had found your course sooner!
It’s absolutely worth its weight in gold. I had been reading articles on the internet, and I even had a couple of initial consultations with people who are supposed to understand this stuff, but they didn’t really help me, and they charged a LOT of money just to form an offshore company.
This course was the glue I needed to hold everything I’ve been reading all together. It’s allowed me to get my legal structure all set up so I can concentrate on my business.”
“A really excellent resource. I had some doubts before buying it, normally I wouldn’t spend this much money just on information, but I figured I’d give it a shot. After taking the course, I figured out that it’s much more than just information. This is what I needed to finally get me over the hump and set up a proper legal structure for my business. It’s just an awesome resource for location-independent entrepreneurs.”
“This course saved me $15,000 in my first year of business by showing me how to set up a structure to get around the self-employment tax. Can’t recommend it enough!”
Frequently Asked Questions
After I purchase Tax-Savvy Expat: Entrepreneur, are there any other fees I need to pay to set up my legal structure? No, there are no other fees to pay. Tax-Savvy Expat: Entrepreneur includes everything you need to get your legal structure up and running.
What is the annual fee for the structure, and when does it begin? The annual renewal fee for the Belize IBC is $550, and it’s due each January 1. The annual renewal fee for the Wyoming LLC is $252, and it’s due on each anniversary of the LLC’s formation date. Each of the registered agents will bill you directly. Every legal entity must have a registered agent, and paying an initial and annual fee to keep your legal entity alive is just how it works.
What if I move back to the US? If you move back to the US, you can no longer operate your business through your Belize IBC. So, you would simply cause your Belize IBC to distribute the LLC to you, and you’d operate through your LLC. Easy peasy.
When is the best time to get started with a new legal structure? Should I wait until I’m making a certain amount, or wait until the beginning of the next year? There’s no reason at all to wait. This legal structure will save you on tax every single day you have it set up. And, typically it’s at the beginning of a business when you need to connect all the pieces together (i.e., open an Amazon seller account or Adsense account, etc.), so that’s the best time to get the legal structure set up as well. There’s no need to wait until the beginning of the next tax year or until you meet some arbitrary earnings goal. Plus, you REALLY don’t want to forget about this and then wake up one day to a huge tax bill.
Yes, I want to become a Tax-Savvy Expat Entrepreneur! – $2,800