Setting up offshore company for adsense, amazon affiliate, clickbank earnings

Does anyone have any experience setting up an offshore company to possible send adsense, clickbank and amazon affiliate earnings?

I do not know anything about this but this is interesting topic. I live in USA east coast. I am currently using my personal info and SSN to open all these accounts with adsense and clickbank. I want to know if it was possible to open up an offshore company and bank and just send earnings there. There are many services that seem to be able to set this up for you for a fee of around $1000

I do not understand the legalities or consequences of doing this. Is avoiding taxes legally simply a matter of setting up an offshore company and just opening up new accounts with adsense and clickbank and sending earnings to my new offshore company?

What about the websites I personally own and are hosted in USA do i need to transfer ownership of the websites to the new entity or can I still have them registered by me. From what I read it is okay to host site in USA.

If anyone has experience with this or know where i can get my questions answered that would be great. I would love to minimize my tax bill if possible. Any help or info greatly appreciated.

Offshore is not what it used to be after 9/11 2011. 99% of all classic offshore locations share info with your own country these days. There are just one or two countries that are more discreet, but they will soon comply as well.

Since you are American it is even trickier for you. You are taxed just because of your nationality. For me it is different, as soon as I register in another country than my home country, I will only have to pay tax in my new country. So for me it is an easy thing to register in Panama, Belize or Costa Rica, and pay peanuts instead of 30-40%

As for setting up a corp for 1000 bucks. That can be done, but what good is a corp without a bank account?

I suggest you stay local and spend your effort on tax management where you currently are residing.

well you would have the offshore corp run all businesses and do the taxes. as long as the corp does not pay you any money you wont have to pay taxes. so you could pay yourself a low monthly income which you pay taxes on and the corp will tax the rest. but you should consult a lawyer etc to make it bullet proof. its not that simple. and of course as the poster above me mentioned as a us citizen all your worldwide income is taxable so wont help to move somewhere else unless you give up the citizenship(which only works before you become rich I think). just my personal thoughts and no legal advice at all!

Is this right that all world wide income taxable? I have read that ge, google and many large corporations open up offshore accounts and pay zero in offshore profits. Anyone with definitive answer please add to this thread. The big boys are doing it somehow.

Will definitely consult lawyer.

I read something about getting around this by incorporating an offshore company and wrapping it up in a trust so that no one owns it and that it is self owning. Perhaps they do this to get around U.S. Law about worldwide income being taxable

"Income from Abroad is Taxable"
http://www.irs.gov/businesses/article/0,,id=180946,00.html

Large corporations open up offshore because part of their business is offshore. That does not imply that they set up a company in The Seychelles with an account in Costa Rica. It means that they bank with the likes of HSBC and own companies all over the map, such as City of London, Gibraltar and Cyprus. IKEA is a good example. Still a family owned operation, but income handled by a bunch of foundations located in Switzerland and Holland.

Wrapping up a company in a trust is surely doable, but the word TRUST implies just that. You give away part of the control to other people. But yes, it is an option.

If you are not making 10K or more a month, I wouldn't bother about doing anything offshore. As I said, I would use my efforts on tax planning locally. For example, I know a service where you pay a sum to a bank account in eastern Europe in exchange for a service (consultancy, programming, whatever), receive an invoice and a receipt for that, get the money back in cash (minus 10%). That way you show no profits and have cash to spend instead.

Not discouraged about offshore yet? Go to ocra.com. They will set you up.

thanks a bunch

If your a Us citizen and if it's for 1000$, it's really useless to do this. But you can still see what professionals have to say about it, there's a livechat on SFM, with professionals who can answer your questions.