[TriLUG] Consultants ... business license?

[Tim Jowers]

Don't listen to these juggards. Expatriate: Set yourself up a company in
Bermuda like Accenture did. Or the Cayman Islands like 14,000 other American
businesses. Why do you want to pay tax? Don't you know paying taxes is only
voluntary if you're a corporation? It won't hurt your business: Accenture
expatriated and still the prime contractor for the IRS (over $1B) and
Homeland Security (think it was $14B). Being a US corporation buys you
nothing but tax paying headache. Heck, once you incorporate overseas then
you can bring in L1's and pretend they are managers but pay them 1/2 the
going rate and 1/2 of that untaxed in their homeland!

I'm joking; but alot of people are doing this sort of thing. When I worked
in Los Angeles I found it was the status quo. One co-worker's room-mate
receives his salary into a Swiss bank account and makes regular trips to
bring cash home. Another's brother is a stock trader in Hong Kong but takes
his payment into a bank in Bermuda - I think there was a 5% "handling" fee.

Tax Evasion. The real reason for Globalism. ;-)

Seriously, I'd work with someone to make it easy for the little guy to
expatriate his company legally. If over 100 multi-million dollar government
contractors can do it and still get the government contracts then why not
the little guy? (In case you haven't researched it, the tax income percent
from Corps has fallen from about 50% in 1950 to about 5% today.)

P.S> Just cross your i's and dot your t's. I can tell you you WILL be
harassed by the IRS if you set up a company. They are only concerned that
you file the forms right. Also, bank on $500 or so in hush money to them
every year or two. When I ran my S-Corp 1995-2002 I had six run-ins with
them. Three times I was right and three I was wrong. Of course I paid no
matter... either pay the accountant $500 to prove you are right or pay the
tax Nazis. They don't really care about facts, just forms. And good luck
once you start calling the call center... I remember the guy saying it was
Friday and he was new and everyone was gone and he shouldn't have answered
the phone... then I just paid the accountant and threw up my hands.


On Dec 13, 2007 4:55 PM, Ron Young <ronyoung at nc.rr.com> wrote:

> FWIW, there is a separate tax form for S corp filings but I believe from
> my
> experience that the bottom line from the S corp still gets entered on your
> personal 1040.  Some limited liability protections for the S corp, several
> tax advantages (health insurance is a corporate expense for example), but
> it
> is still sort of like personal income.
>
> --
> Ron Young
> 919-621-9015
>
> On Dec 13, 2007 3:16 PM, Carl Crider <c.crider at gmail.com> wrote:
>
> > Hey there,
> >
> >  I am adding a couple of clients to my after-work schedule. One of them
> > would like me to have business license in order to sign a support
> contract
> > with me. This may be a dumb question, but where do I begin this task?
> I'd
> > appreciate suggestions regarding getting/having a license? This is my
> > first
> > foray into being my own boss.
> >
> > Thank you.
> >
> > Carl
> > --
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