These past couple weeks I’ve been getting all the 1099s in the mail and adding up how much I’ve had to pay in taxes for 2017. It’s that time of year again and while I’ve heard plenty of stories about people opening up companies in Hong Kong, Singapore, the Bahamas, etc. in order to limit their tax liability, I’ve never quite understood it and something about it feels illegal.
That’s why I was excited to spend time with Stewart Patton, a US tax attorney who specializes in US taxes for expats. In fact, he lives as an expat entrepreneur himself in the country of Belize with his wife and kids.
I had attended one of Stewart Patton’s webinars and although I’ve taken full advantage of the foreign earned income tax credit, I was quite intrigued by the structure he uses to limit self-employment tax while overseas. In short, he’s using an IBC (International Business Company) with a Wyoming LLC – something he explains more of in the interview.
Within this chat, I ask Stewart questions such as:
- When it comes to taxes as an expat entrepreneur, there are many “experts” online and theories about what should be done. How do we know who to trust and what should we be looking for?
- How does the 2017 US tax reform change things for expat entrepreneurs?
- If we already have a company established in another country, is there still benefit to forming an international business?
- Does money that flows into my US bank account count as “foreign earned income”?
- What is the next step that we can take as expat entrepreneurs to figure out our specific tax situation?
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