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by eonw 3491 days ago
you can keep the money off shore and pay the taxes later though, no?
3 comments

Not for individuals — US taxpayers have to pay tax on their worldwide income, though they can get credit for foreign taxes paid to other governments. When the income is received by an entity in a tax haven, there is generally no credit to be had.

Speaking generally, if a corporation is owned by fewer than 10 US taxpayers, there is no effective deferral. This is based on the assumption that closely-held companies are being operated at the behest of the owners and will be structured in a way that is tax efficient for the individual owners.

Public companies are not subject to these rules, and they can defer paying tax on some types of income.

yea i was more thinking of "earning" it and keeping it in the entity until its needed or wanted. that would allow you to defer taxes, yes? i was under the impression that it is not income until its paid to me as salary or dividends, that could be wrong though.
That's not how individual income tax works in the US, only corporations get that special pleasure.
If you're not a US citizen, yup.