Moving corporation offshore
My company is looking to release a new product, that may greatly increase sales in 2009. We are currently incorporated in Illinois, and I reside in Illinois and am the only shareholder. The potential corporate income taxes I would owe in 2009 could be in the several millions.
Is moving my corporation offshore an option? Perhaps Cayman or Ireland? We have no assets, only rental offices and our products are made overseas and shipped directly. No actual business is done in the USA, except that I live here. My question is this; what would I need to do in order to move my corporation offshore? Would I have to relocated my primary home? Could I still live in the USA if I decide to move my company offshore?
2 Answers from Attorneys
Re: Moving corporation offshore
Thank you for your question. You can move your company offshore to a low tax jurisdiction - such as Bermuda. The issue becomes, however, that you pay tax when you repatriate (eg, "bring back") the monies you bring into the US. Please feel free to email me if you have any follow up questions: [email protected]
Re: Moving corporation offshore
I will add to the previous attorney's point that there are two levels of taxation. The Corporation is taxed for its own income, and then you are taxed on any dividends or salary paid to you personally. If you live in Illinois, you will still have to pay the high income taxes for your personal income. As mentioned, there is also the issue of repatriating the corporation's own income.
If you are looking for advice on how to minimize your tax impact, you should speak to your company's CPA and attorney. Feel free to give us a call if you have any questions.
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