Running a global business? Learn how to optimize taxes legally and efficiently by choosing the right jurisdiction and structure.
Today’s entrepreneurs are often location-independent, billing clients in multiple countries. Smart tax optimization begins with incorporating in a jurisdiction that minimizes global tax exposure.
Popular structures include:
- US LLC (non-resident): Pass-through structure, flexible, simple
- UAE Free Zone Entity: 0% corporate tax, global bank access
- Estonia e-Residency Company: Transparent, low maintenance
Be careful with controlled foreign corporation (CFC) rules in your home country, which may still tax your offshore profits.
Also, understand VAT/GST implications—just because you operate offshore doesn't always mean you're exempt from tax on services.
FAQ:
Q: Is it legal to invoice from an offshore company?
A: Yes, as long as you comply with banking, reporting, and local tax obligations.
Q: What about Stripe or PayPal accounts?
A: Set up under your offshore entity with matching banking documents to avoid account suspension.
Editor's Note:
Proper documentation, accounting, and tax reporting are critical. Consider hiring a tax advisor familiar with international law.
Tags: global business, digital entrepreneur, offshore invoicing, tax entity
(Editors: admin)