I have a home-based business that has really taken off. I would like to be able to take the money that my business makes and invest it in such a way that it is taxed at a lesser rate (like capital gains or something like that instead of income tax). Should I have my business based in the Caymans for this reason?
If I take the money that goes directly into my business bank account and buy dividend bearing stocks will I still be taxed an income tax rate?
Thanks for your answers!
You can’t. That income is taxed as income prior to you investing it in anything. The Caymans don’t just let anyone open their business there to avoid US taxes. If you take income from the business and invest in a personal portfolio, it’s taxable as income to you. If you…
uy the investments in the name of the business, it’s still regular income to you when you take it out for personal use. You really aren’t going to get around paying the income taxes.