Ask HN: Best USA state to be self-employed in?

Re:Ask HN: Best USA state to be self-employed in? by wheresmycraisin on Wednesday January 06, 2021 @11:14PM (#25667212)

Have you considered moving out of the country instead? Because you will have to pay federal taxes, which are much more onerous than state. Otherwise, Nevada or other states with good asset protection and low/no state income tax.

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Re:Ask HN: Best USA state to be self-employed in? by garmaine on Wednesday January 06, 2021 @11:42PM (#25667351)

Puerto Rico would avoid federal taxes.

But I don't think the OP should be making this choice based on taxes.

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Re:Ask HN: Best USA state to be self-employed in? by emteycz on Thursday January 07, 2021 @03:37AM (#25668701)

A citizen of the US can't avoid federal taxes anywhere

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Re:Ask HN: Best USA state to be self-employed in? by GoldenMonkey on Thursday January 07, 2021 @12:00PM (#25673606)

Sure they can. The first $107,600 of earnings, can be excluded from Federal Income Taxes. If you live in a foreign country. Look up the foreign earned income exclusion.

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Re:Ask HN: Best USA state to be self-employed in? by garmaine on Thursday January 07, 2021 @04:33AM (#25669094)

Not true! Google "puerto rico federal income tax" if you don't believe me.

https://www.forbes.com/sites/robertwood/2019/09/09/move-to-p...

(Despite saying "not exactly" in the title, it is in fact exactly that. Read the details. PR residents don't pay federal income tax. There's just some caveats if you're trying to move there as a tax dodge.)

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Re:Ask HN: Best USA state to be self-employed in? by dhruvkar on Friday January 08, 2021 @01:26PM (#25687898)

Only if your source of income is from Puerto Rico.

https://www.irs.gov/taxtopics/tc901

>> If you're a bona fide resident of Puerto Rico during the entire tax year, you generally aren't required to file a U.S. federal income tax return if your only income is from sources within Puerto Rico.

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Re:Ask HN: Best USA state to be self-employed in? by emteycz on Thursday January 07, 2021 @06:32AM (#25669861)

I thought that applies only to non-US citizen Puerto Rico residents. Seems like you're right, thanks for correction!

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Re:Ask HN: Best USA state to be self-employed in? by garmaine on Thursday January 07, 2021 @03:04PM (#25676563)

Well Puerto Rican born residents are US citizens. The IRS makes it understandably difficult to change your residence to PR as a tax dodge though.

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Re:Ask HN: Best USA state to be self-employed in? by wheresmycraisin on Thursday January 07, 2021 @04:30AM (#25669067)

Assuming you're not working a multi national corp that has branches in the US (and therefore reports to the irs), I can't imagine hiding income abroad is all that difficult with a few shell LLC's and trusts.

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Re:Ask HN: Best USA state to be self-employed in? by garmaine on Thursday January 07, 2021 @04:34AM (#25669099)

That's evading taxes, not avoiding taxes (legal distinction).

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Re:Ask HN: Best USA state to be self-employed in? by techsin101 on Saturday January 09, 2021 @02:02AM (#25698179)

you still have to pay taxes to irs - taxes paid elsewhere

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