I'm looking for clarity re people who setup funds in Caymans/BVI etc, for tax purposes. Even if someone registers a fund/company offshore, aren't they taxed wherever the fund is controlled, i.e. where the fund manager is placing trades - be it on US/British/other soil? I'd be grateful if someone could help shed some light on this...
youre only taxed on the money that you bring into the united states. so u can trade accounts offshore as an "employee" of the fund, but any money u bring in or your "salary" you get taxed. of course the paper work to set this up is crazy
Thanks JT, Can I ask whether you have setup or looked into such a structure? Some advisor names would be great. Pls feel free to PM. Thanks.
Suggest you take a closer look at forming a taxable offshore entity with double taxation treaties. http://www.seychellesoffshore.com/seychelles-csl-company.php than read: http://www.fincen.gov/news_room/rp/advisory/html/advis2w.html withdrawing http://www.fincen.gov/news_room/rp/advisory/pdf/advis2.pdf
Thank you, pocketchange - I'll print them out and read them in greater detail on my commute tomorrow. Someone told me about a structure where one trades a Trust, and is then 'lent' money by the Trust as salary... Does anyone know more about that or similar structures...?
Too many variables... I understand there are specific benefits of forming a Liquidation Trust. As Trustee of a liquidation trust you are not tied to fiduciary duties and are able to operate and "liquidate" assets over an unlimited time frame. 5 - 10 - 20 - 50 years... etc. The Trust would have its own EIN and its purposes would be to liquidate and distribute assets to its beneficiaries. Trusts are tricky instruments but can operate with minimal transparency Whats really strange is there are no state or federal filing requirements as liquidating trusts operate without recourse. More like bankruptcy liquidations except you are the trustee and are able to profit directly.
this is B*S* and wrong!!!! If that was the case evey businessman/woman would have offshore banks/businesses. you are taxed REGARDLESS unless you live there. Dick head advice! ------------------------------------------------------------------------------- youre only taxed on the money that you bring into the united states. so u can trade accounts offshore as an "employee" of the fund, but any money u bring in or your "salary" you get taxed. of course the paper work to set this up is crazy