I can help you in Tax planning

[chrispriyeshb]

Hi all

For the starters iam a C.a [C.p.a as you people call in the USA].
I know its strange for you people to have me here coz as everyone knows i do get paid hefty salary.
But i have my own personal reasons to be in bhw.

As i enjoy a few benefits from bhw i will help you guys in tax planning.

Now Tax planning and tax evasion are two different things.

Tax evasion is a illegal, immoral thing where though you earn and though you should pay tax you wont just hiding the money. Though stupid most do this.

Tax planning is a method where you plan how to reduce if not completely eliminate your tax burden. Its legal

Imp point:: Tax planning is a today's work to save tomorrows tax..
Dont expect results in a day.

One more thing
I Have seen some posts saying that you need not pay taxes, the govt is looting you and all those stuff...
But i know thats wrong and without taxes no country would stand.
When you pay your tax you do a lot of things...
You protect your country [the armed forces, the weapons they use etc]
You save lives [The govt hospitals, Social security forces , cops etc]
You give people a living [all the people working for the govt..u pay their salaries]
You make your country a better place to live [Roads, Airports, all the development]

So in short When you pay your tax..you buy your countries growth.

Guys who expect me to help for Laundering, embezzlement can forget it..
I will just provide guidance and it is always good to consult your own C.P.A

Note: Im good with Indian Tax laws but for the other countries i will try and help.

 

[KraftyKyle]

Well in the US, my tax money is just pissed away on nonsense... Barack.

 

[chrispriyeshb]

So who funded all the airports, advanced military, advanced science, regular power and Highways etc??

Trust me buddy..every penny you pay as tax is used..[sometimes by the politicians though ]

 

[Aaric]

Ok OP thanks for nice thread.

How can we hide WU transactions.

I tried to pay full TAX.

but my CA told me that it is not good and TAX department itself does not want to you fill full TAX amount. So he told me to show some salary to 2-3 workers.


Any suggestion.


I am showing my earning Source as "INTERNET MARKETING FOR LOCAL STORE,FREELANCING"

Any additional Suggestions. Thanks

 

[Aaric]

so who funded all the airports, advanced military, advanced science, regular power and highways etc??

Trust me buddy..every penny you pay as tax is used..[sometimes by the politicians though :d]

nvm

 

[chrispriyeshb]

Ok OP thanks for nice thread.

How can we hide WU transactions.

Fact is you cant hide WU [Western Union] transactions coz there are hell lot of rules that WU follows when transferring funds across the borders.

You also mention your PAN details while collecting the funds from the WU agent.

The best way to hide is to keep it in the open.
So do mention all your international transfers in your returns.
trust me better to spare a dollar than to be confiscated under FEMA, FERA and all those other laws.

I tried to pay full TAX.

but my CA told me that it is not good and TAX department itself does not want to you fill full TAX amount. So he told me to show some salary to 2-3 workers.

Wouldnt go to what your CA said.
But be careful and cautious when you do this,leave no loopholes.
Yes you can pay salaries to few employees below Rs 5000 without raising a eyebrow but do maintain a employee register and and keep their signatures filled every weekend.

And again all this is tax evasion, and not tax planning.
as long as you keep it small, things go fine.
But when you rise above your struggling point play fair and pay your taxes.

You dint mention your annual income range. Would have suggested how to plan your tax if had info on that.

Any additional Suggestions.

Yes Pay your taxes on time,,with those you buy your countries growth.

Send me a PM will send you some things that i shouldnt disclose in open..

 

[ifeellucky]

Hi, I am also from India and I am planning to setup a LLC in US and also a bank account in US. What are the legalities involved ?

 

[keinehabe]

paying tax is good is true , in places where the money from taxes goes back to society , in my case ( and I saw few more peoples from my country , you must be just plain dumb to give money to official stealer from the government ) ... even if my english skills aren't perfect but ... is not matter how you call it if you wanna be honest and you are claiming to '' play by the rules '' just pay the taxes like they are ... otherwise just gamble your luck and trick them no matter how you call it , planning taxes or evasion at the end of the day result it's same and you don't have to hide your intention lol .

 

[chrispriyeshb]

Hi, I am also from India and I am planning to setup a LLC in US and also a bank account in US. What are the legalities involved ?

Would update you tonight.

 

[chrispriyeshb]

paying tax is good is true , in places where the money from taxes goes back to society , in my case ( and I saw few more peoples from my country , you must be just plain dumb to give money to official stealer from the government ) ... even if my english skills aren't perfect but ... is not matter how you call it if you wanna be honest and you are claiming to '' play by the rules '' just pay the taxes like they are ... otherwise just gamble your luck and trick them no matter how you call it , planning taxes or evasion at the end of the day result it's same and you don't have to hide your intention lol .

No country is perfect brother.
You pay your taxes coz you love your country and you make a living from it.

And again Tax planning and tax evasion are two different things.
Tax planning is legitimate coz the government itself provides exemptions from tax, deduction from taxable income to encourage certain investments and donations that help the public [ say Donations to a charitable institute or to W.H.O , U.N.O etc].

In that way its encouraging us to be more human and its paying back by reducing our tax burden.

 

[chrispriyeshb]

ifeellucky

Requirements:
An office, and a resident who will act as an agent on behalf of the LLC.

To be short
You can start a LLC if you can afford a Agent and a office.

IF you cant afford
Though there are few organizations that offer virtual agency free of upfront cost they would charge a profit percentage.
Regarding the office you can setup a virtual office.( google that for more info)


Few points to be noted:

You may serve as a corporate officer or director of a U.S. corporation, or as a manager of a U.S. LLC.

Regarding taxes.. you wont be directly liable, but there exists a liability on your share of profit transferred to you from the LLC.
The following paras will through more light on this.

"The mere ownership by a nonresident of stock of the LLC typically does not create individual filing obligations. However, a nonresident may be subject to U.S. Federal income tax on dividends (or other distributions) paid to him or her by the corporation. It is important to note, however, that the corporation will need to file a federal tax return."

"United States LLCs typically do not pay taxes directly, but may be required to file tax returns. The earnings and/or losses of an LLC are allocated to the members (who each receive a form K-1 from the entity), and the members are required to report such income or losses on their individual tax returns and pay applicable taxes. As a result, the members may have filing obligations and incur individual United States tax obligations due to their ownership of an interest in the LLC."

"To the extent that a nonresident is required to file a United States federal tax return, he or she will most likely also be required to file a tax return in one or more states."


Steps for starting a limited liability company (LLC).
Keep in mind that your LLC's start-up requirements might vary from the list below, depending on the specific type of business you are in, and where your business is located.

Decide on a business name for your LLC and check for its availability. In most states, "LLC," "Limited Liability Co.," or a similar variation must be included in the LLC's business name.

Register your LLC name

Create and sign an LLC Operating Agreement.

Write your LLC's Articles of Organization.

File your LLC's Articles of Organization with the Secretary of State office in your state.

Obtain business licenses and permits for your LLC from:
The federal government.
Your state government.
Your local government.

Forming a LLc is a complicated procedure, it is suggested that you better consult a CPA.


NOTE:: India has a DTAA [double tax avoidance agreement with US] so for the income generated in USA if you pay tax to the US govt then you need not pay any additional tax on such income[if the tax rate of the US govt is equal or more than the corresponding tax rate of indian govt. If its less then you would need to pay the difference to indian Govt]

 

[ifeellucky]

Bro thanks for such an in depth explanation.........
So forming an LLC in US is totally legal.
Steps I should follow is:
1. Should hire an agent in US
2. Should setup a virtual office
3. I should be designated as corporate officer or director or CFO
4. Will need to file a federal tax return
5. I should pay taxes in India for the money I get transferred to my Indian bank account.(what if, I open a bank account in US and use debit card to withdraw in India ?)

My intention is not to avoid taxes, but to know before jumping in.

Correct me if I am wrong.

Thanks once again Bro !!!

ifeellucky

Requirements:
An office, and a resident who will act as an agent on behalf of the LLC.

To be short
You can start a LLC if you can afford a Agent and a office.

IF you cant afford
Though there are few organizations that offer virtual agency free of upfront cost they would charge a profit percentage.
Regarding the office you can setup a virtual office.( google that for more info)


Few points to be noted:

You may serve as a corporate officer or director of a U.S. corporation, or as a manager of a U.S. LLC.

Regarding taxes.. you wont be directly liable, but there exists a liability on your share of profit transferred to you from the LLC.
The following paras will through more light on this.

"The mere ownership by a nonresident of stock of the LLC typically does not create individual filing obligations. However, a nonresident may be subject to U.S. Federal income tax on dividends (or other distributions) paid to him or her by the corporation. It is important to note, however, that the corporation will need to file a federal tax return."

"United States LLCs typically do not pay taxes directly, but may be required to file tax returns. The earnings and/or losses of an LLC are allocated to the members (who each receive a form K-1 from the entity), and the members are required to report such income or losses on their individual tax returns and pay applicable taxes. As a result, the members may have filing obligations and incur individual United States tax obligations due to their ownership of an interest in the LLC."

"To the extent that a nonresident is required to file a United States federal tax return, he or she will most likely also be required to file a tax return in one or more states."


Steps for starting a limited liability company (LLC).
Keep in mind that your LLC's start-up requirements might vary from the list below, depending on the specific type of business you are in, and where your business is located.

Decide on a business name for your LLC and check for its availability. In most states, "LLC," "Limited Liability Co.," or a similar variation must be included in the LLC's business name.

Register your LLC name

Create and sign an LLC Operating Agreement.

Write your LLC's Articles of Organization.

File your LLC's Articles of Organization with the Secretary of State office in your state.

Obtain business licenses and permits for your LLC from:
The federal government.
Your state government.
Your local government.

Forming a LLc is a complicated procedure, it is suggested that you better consult a CPA.


NOTE:: India has a DTAA [double tax avoidance agreement with US] so for the income generated in USA if you pay tax to the US govt then you need not pay any additional tax on such income[if the tax rate of the US govt is equal or more than the corresponding tax rate of indian govt. If its less then you would need to pay the difference to indian Govt]

 

[chrispriyeshb]

IfeelLucky

I should pay taxes in India for the money I get transferred to my Indian bank account.(what if, I open a bank account in US and use debit card to withdraw in India ?)

As explained, you would need to pay tax to the Indian govt on the income generated by you in the US if and only if the tax rate in US is less than the corresponding tax rate in India.

It wont be a problem as long as you transfer your earnings from US in a legitimate way to India.

 

[redstone.1337]

I worked with a JV and we made a good amount of money (we both are from India). The CPA Account was registered on his name and all the fund came into his account. He is also my good friend so there wasn't any fear of him running away with the money. He sent me 50% of my share from his account to mine. How should I show these transaction so that he doesn't gets taxed for my 50% share and I can show that 50% as my legitimate earnings? I thought of showing my 50% as a service that I offered to my JV but that would pull me into paying Service Tax. And can you suggest some ways for tax saving (even if it is shady but as far as I am secure)? Most of the CAs here aren't able to guide properly regarding these matter.

 

[chrispriyeshb]

I worked with a JV and we made a good amount of money (we both are from India). The CPA Account was registered on his name and all the fund came into his account. He is also my good friend so there wasn't any fear of him running away with the money. He sent me 50% of my share from his account to mine. How should I show these transaction so that he doesn't gets taxed for my 50% share and I can show that 50% as my legitimate earnings? I thought of showing my 50% as a service that I offered to my JV but that would pull me into paying Service Tax. And can you suggest some ways for tax saving (even if it is shady but as far as I am secure)? Most of the CAs here aren't able to guide properly regarding these matter.

There are a few things i would like to know before i can suggest the best thing.
1.The amount involved?
2.What is he currently showing in his tax returns? If this is the first year let me know the same.
3.What is the time frequency of the payments. [Is it weekly or bi weekly or monthly?]

 

[cheshire1337]

doesnt google auto take out taxes on your adsense or do you have to report it yourself?

 

[chrispriyeshb]

doesnt google auto take out taxes on your adsense or do you have to report it yourself?

Never worked on adsense so i have no info on this.
But as per the law, Tax is deducted at source only when the payments exceed the taxable limit.