ET is not usually a great place to ask about tax, but what the hell, nothing to lose. Anyone have any experience with the tax deferral strategy of handling clients through an offshore company? The basic idea is lets say you manage accounts for clients through a company domiciled in a zero tax jurisdiction. The company collects and accumulates those payments free of US taxes. You, a US tax resident, own the company, but because it has multiple clients and is a "real" company, you don't get taxed on the annual profits. If the company pays you a salary, that salary gets taxed. Once you decide to repatriate the accumulated profits in the company as a dividend to yourself, taxes become due. So, the taxes are deferred.