If you’re an entrepreneur or digital nomad who’s looking for a place to invest and do business tax-free, look no further than the United States of America! That’s right, even though the US has one of the highest corporate tax rates in the developed world, non-US persons can invest and do business in the US tax-free if they don’t have effectively connected income. In this blog post, we’ll give you a summary of the source rules for income of nonresident aliens so that you can take advantage of this little-known tax loophole.
Did you know that the United States is one of the world’s biggest tax havens? That’s right – if you’re not an American citizen, you can invest and do business in the US tax-free! You can even own operating businesses in a Wyoming LLC and enjoy pass-through taxation. All you need to do is make sure you don’t have any “effectively connected income.” And there’s no withholding tax on dividends, interest income, or most capital gains. So what are you waiting for? Start taking advantage of this amazing opportunity today!
The benefits of the U.S. tax system
The United States has long been known as a safe haven for investments and businesses. But did you know that it’s also a great place to save on taxes? If you’re not an American citizen, you can actually invest and do business in the United States tax-free!
There are a few catches, of course. The first is that you can’t have any “effectively connected income.” This simply means that you can’t earn income from within the United States. However, if all of your income is derived from outside of the country, you’re in the clear!
What does it mean to “earn income from within the US”? That means you have a physical connection to the US. For example, if you have a physical office or warehouse or have employees or equipment, then you have nexus. This would also mean your business has effectively connected income and thus taxable.
However, many non-US persons, or non-resident aliens have virtual businesses selling products or services like digital download products, info products, consulting, software and more. As long as you don’t have nexus in the US, then you could easily have that income pass thru to you as owner instead of having a US tax obligation.
Another great thing about investing in the United States is that there’s no withholding tax on dividends, interest income, or most capital gains if your investment accounts are all held in a WY LLC (for example). So all of the money that you make from your investment will stay in your pocket!
Finally, if you own an operating business in a Wyoming LLC, you’ll enjoy pass-through taxation. This means that your business will be taxed at the individual rate, rather than at the corporate rate. And as noted above, as long as the business does not have nexus in the US, then there is no US tax owed. You may have a tax obligation where you claim your tax residency, but there are many ways to minimize that as well.
So what are you waiting for? Start taking advantage of this amazing opportunity today! Register a Wyoming LLC for your operating business or to just hold your investment assets in the United States and enjoy all of these incredible benefits!
Conclusion:
The United States is one of the world’s biggest tax havens – and it’s an incredible opportunity for entrepreneurs and digital nomads who want to take advantage of it! If you’re not an American citizen, you can actually invest and do business in the US tax-free. So what are you waiting for? Start taking advantage of this amazing opportunity today!
