Trading tax question

J

jerryz

What are the tax obligations under the following scenario:

- trading entity is a BVI company
- the BVI company is 100% owned by a U.S citizen
- the U.S citizen does not reside in the United States

1) what are the tax obligations of the BVI Company?
2) what are the tax obligations of the owner?
3) will the broker (e.g., Interactive Brokers) withhold taxes?

Thanks
 
when u apply to IB , u need to photocopy ur US passport,
You won't get into trouble being a director for a BVI however,

1) if u do not declare ur income for the BVI Company during ur tax returns ,when the gov obviously knows u own a BVI,
u become a target for research, ur trading funds *Will be seized* if you don't report it. pretty simple.

2) many banks won't even open bank accounts for u , considering u are a US citzen.




=========

3) you not residing in the US makes no difference,
a slave of the United states of America, is A slave regardless if he moves to antartica.


pay up slave
 
http://www.globaltaxhelp.com/tax-basics/expat-tax-basics

If you are a full time resident abroad for a full calendar year, or live there for 330 days out of any consecutive 12-month period, you can exclude up to $91,500 of earned income from U.S. Income Taxation for 2010.
More...

that's about it for you.everything above-regular tax. + numerous forms directly to the treasury dept,since you are stating that you OWN foreign company. use google for sake

http://en.wikipedia.org/wiki/Controlled_Foreign_Corporation

http://www.irs.gov/businesses/small/article/0,,id=148845,00.html

enjoy your "freedoms" :p
 
Quote from jerryz:

If the trading gains are made by the BVI company, then when does the owner actually have income?
More...

imo-it's doesn't matter..since you are the only owner and you are going to publicly declare this -all realized profits are yours. along with taxes.
we have US LLC..3 members in it..we never took the money out..but every year we are paying taxes on our realized profits according to our ownership..it may depends on type of the company,but some day you are going to take the money out of the company,aren't you?
all offshore places having structures similar to US LLC..
but...i see no reason to ask such questions on public forum anyway..you have to talk and pay some top $$$ to the lawyers,who specialize in this area..
i'm pretty sure about one thing-once you declare your ownership of foreign corporation(and bank account)-the IRS will be all over you regardless..single owner of offshore corporation? common..no matter how you put it-it's not going to look like some non profit charity :p
 
An LLC needs to pay corporate taxes, but there are no corporate taxes in BVI so a BVI company should not have to pay taxes. Is this correct?

If the owner takes a salary or dividend from this company, then the salary and dividend is taxed. Is this correct?

What is Obama talking about when he says the wealthy are using tax shelters abroad legally? How do they do it?
 
Quote from jerryz:

An LLC needs to pay corporate taxes, but there are no corporate taxes in BVI so a BVI company should not have to pay taxes. Is this correct?

If the owner takes a salary or dividend from this company, then the salary and dividend is taxed. Is this correct?

What is Obama talking about when he says the wealthy are using tax shelters abroad legally? How do they do it?
More...

look....you can find all answers on internet by yourself. seach,read,learn. it make no sense(at least to me) to ask some random people on public forum a very specific questions..specially tax related..go on any website,who specilize on offshore companies and you will find all info..

i have no cliue about BVI, but
1.typically you have to pay fixed amount of money every year. typically it's called "franchise tax"
2-yes. from 2011 dividends will be taxed at the top of your tax bracket,making your idea looks really stupid..
In 2011, dividend income (other than capital gain distributions from mutual funds) is taxed as ordinary income at your highest marginal tax rate.
More...

http://turbotax.intuit.com/tax-tool...-Law-Changes-for-2010-2017/INF12041.html#2011

3.-you can ask him about it.
like i said before-company should be least of your worries..start from bank. most likely (as been said before) you will be unable to open an a bank account..for many reasons..including extremely high minimums and strict requirements..most likely bank is not going to open an account to US citizen OR if owner is a US citizen regardless..once again-read about current rules and laws. most likely you are going to make a multiple violations during this "process"..good luck
 
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