- If you are living realy most of the year in the low-tax-country, i think it is not necessary. - if you like to live in many places, in my view it could avoid problems... - in this times i would put my money in different country for security reasons. even living in a high tax country.... i was going thrue a whole bunch of shit (living in Italy) and the reason was goverment/administration/laws etc. so i learned, that - make shure that nobody can take your money in an easy way (account in countrys like Hongkong, Singapure, Dubai +++) well, much to tell about, but no time for that.
you should do some research on your own. on something like "offshore company". google it. read.then many of those questions will go away by itself.
What makes you assume that I didn't do any research on my own? I said that in my OP. I put that in there specifically so someone wouldn't put the standard "Google it" line that gets dropped at some point into every thread on this site. If there is any place where I would run into people that have dealt with these issues, it's here. Plus there is some good discussion and great input from ETers with experience on the matter for future reference.
if you create an offshore company -in most of those "offshore friendly" countries corporations does not pay taxes on income earned outside of the place,where company is incorporated. so-there is basically should be no disputes,since there is nothing to dispute anyway. most of them do have flat franchise tax and that's about it.you can find this information probably in every link about incorporation in offshore.
of course it is not as easy as that. for instance in germany you are taxed on a portion of a company profit if you are a beneficial holder. i think you even do not need to withdraw the money physically. so there you need other structures like trustees, nominees, etc. i guess that's also why german govt really goes after all this information (especially recently). in different countries it is of course different. note: germany is not my playing field so i may be wrong.
opening a offshore company is the easy part. But you would like to have the money earned by the company to spend by yourself. Its not a problem when you live a poor life and spend some normal amount. BUT what when the comapyn earns 200.000/month and you cant spend it? makes no sense. So the important part of such constructions is alsways the person itself.
i see no problem whatsoever. if i was interested in creating offshore company i would take couple of my friends from countries,where gvt not interested in foreign companies ownership and not asking too much questions, when you wire money overseas. there is a plenty of such countries in eastern europe. i would create offshore corporation with 3 members in in and by doing this i don't have to report famous US FBAR form,no financial interest in foreign companies. then-open brokerage account in US,then-make some money on US markets sitting @ home in US. wire money to eastern europe and then-my friends send them back to me in various forms of gifts,financial support and so on..no to mention that many banks provide no name credit card,which you can use outside of us.btw-you don't have to travel at all in this setup.
bob with all due respect you do not need to chime in on things that you have no clue about. please just reread your contribution to this thread and in particular look at how/if you helped the OP. that's a complete fantasy you are talking about here - to start with what kind of friends are you talking about when you are in hundred thousands $ transfers? keep sitting in the US and pay taxes - it will become more and more fun in the coming years. btw what nationality are you? i guess you are american after all...(?)