The USA as a Tax Haven
US taxation for non-Americans who use US entities
as a way of reducing their overall tax burden.

The USA is perceived as a country of low taxation. The State of Delaware is often used as a State of incorporation because of its favorable corporate law and its low taxation of companies whose only business is outside the State of Delaware. Some other States do not tax certain types of income.

The recent invention of Limited Liability Companies “LLC” and Limited Liability Partnerships “LLP” has opened the ability of foreign investors to operate through American entities. These entities are basically taxed as partnerships, that is the partners are subject to tax. If the partnership only undertakes business outside the USA and the partners are not otherwise subject to US tax, they may not be taxable on their share of the profits. However, the entity must still file all required US Federal tax returns, which for an LLC includes an annual tax return. Such returns have to be prepared in compliance with US tax law and accounting principles.

McDowell CPA PC provides advice on structuring and preparation of tax returns.

Is your US Tax Haven really working?

Take our "Taxese US Tax Haven Test"

Do you have potential US tax liabilities or reporting requirements, with your US Tax Haven?

If you think your US entity is not taxable and has no reporting requirements in the USA, let us take it for a quick "Test Drive" with our "Taxese US Tax Haven Test".

After all, you have probably invested considerable assets in your US Tax Haven. Is it not worth the peace of mind to check if it is really working as a Tax Haven?

With our "Taxese US Tax Haven Test" we will perform a test on the US taxability and reporting requirements of your Delaware or other US entity.

If you would like us to perform our "Taxese US Tax Haven Test", we will need, at least, us the following information:

• Type of entity:
  e.g."C" Corporation, Limited Liability Company "LLC", Limited Liability Partnership "LLP", Partnership or other.
• State of Incorporation:
• Confirm that: you have no staff, directors, officers, owners (direct, indirect or beneficial who are living in the USA or who are residents or US citizens). The entity does no business, has no assets or office in the USA.
• Sales to or purchases from the USA.
• Describe the type of transactions undertaken and where they are actually and contractually undertaken.
• Describe the type of assets owned by the entity, the type of liabilities it has and their location.
• Does the entity have any bank, security or similar accounts outside or inside the USA?
• Approximately what are the annual receipts and payments, income and expenditure
• Ownership and their country of residence

E-mail Angus McDowell at angus@McDowell.com with or send him the above information.

Do not send actual data by e-mail.

Angus McDowell will contact you with:

• Payment instructions
• Any additional information requirements
  

This information will be kept in strictest confidence.