Can I save tax $ by moving to another country?

Only if you move there, too…for the most part.

If you move your business to another country…to get any assets (i.e., YOUR CASH!) back into the US you will pay US tax rates on it. Meaning…any cash distributions to owners will be taxed as the monies are withdrawn from the foreign corp and transferred to a US Taxpayer.

Remember…avoiding taxation is legal, evading it is not. You must have a business purpose to move your business away from US taxation.

Although, there are illegal ways to accomplish this if you are willing to break the law…and i have heard many tactics that are being “sold” by consultants which are not legal…please be careful and consult a professional before purchasing a tax scheme from anyone…the IRS will find you, banks and credit card accounts are scoured for foreign money movement. Check these links for more background:

http://www.irs.gov/businesses/small/article/0,,id=106558,00.html

http://www.globalpolicy.org/component/content/article/172/30079.html

http://www.irs.gov/businesses/small/article/0,,id=106568,00.html

http://www.netatty.com/articles/tax.html

But, there ARE ways to save tax dollars by using opportunities in foreign lands….usually you need to move there too.

Also – consider the “Foreign earned income exclusion”… qualifying US taxpayer who live and work abroad may be able to exclude from their income all or part of their foreign salary or wages, or amounts received as compensation for their personal services. In addition, they may also qualify to exclude or deduct certain foreign housing costs. Up to $91,500 per person. Tax might have to be paid to the foreign country though!

Check out this link for more info: http://www.irs.gov/businesses/article/0,,id=182017,00.html