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Re:Why you might not want to incorporate in the USA by beagle3 on Thursday March 13, 2014 @07:59AM (#7391220)
And ... the article doesn't touch on it, but that goes triple on personal tax issues -- especially if you do not sever your ties to your previous states of residence.

The US tax code, as evidenced by FBAR and FATCA, assumes that the only purpose of any financial transaction or account outside the US, is to hide money from the IRS. You have to report each and every "account", with contact details at the institution, every year, on two independent forms (similar yet different), as well as every transaction in securities (if you can actually do them anymore - most places won't even let you if they know you are paying taxes in the US).

If you are not a US taxpayer already and planning to do anything in the US, be sure to talk to a CPA that specializes in those kinds of things (preferably, one who is also familiar with the treaties and tax code in the country you are moving from). You need to do this both on the business front and the personal front, or you are likely to be seriously and horribly surprised one day.

Re:Why you might not want to incorporate in the USA by ryankask on Thursday March 13, 2014 @08:14AM (#7391259)
I moved to the UK a few years ago and I couldn't agree more that the IRS rules and regulations unfairly penalize "average" US citizens that live and operate abroad.

FBAR, FATCA and if you start a business, form 5471 and friends. I got some quotes from a few accountants and I will likely have to pay thousands of dollars for assistance just to fill out informational forms and pay (maybe) a few hundred dollars in US taxes.

Re:Why you might not want to incorporate in the USA by beagle3 on Thursday March 13, 2014 @08:30AM (#7391319)
I think that's the most ridiculous thing about it:

Whether you are an American who moved to a treaty country, or a treaty country resident who moved to the US, it is not likely that you'll have to pay a lot of US taxes if at all. (The treaties I am familiar with are quite reasonable). However, unless you are a tax professional yourself, you are going to be "taxed" by a professional to prepare all those papers that you must file.

I know someone who moved to the US, and whose tax filing on one year topped 150 pages of "informational data" despite not having to pay one cent.

I have never met a person who is in any way familiar with the US tax code who thinks it is makes any sense or is reasonable. Only people who never had to really deal with it think so.

Re:Why you might not want to incorporate in the USA by nitai on Thursday March 13, 2014 @09:11AM (#7391513)
Additionally, the US is one of the few countries that punish their citizens with US tax even when they don't live in the US anymore...
Re:Why you might not want to incorporate in the USA by STRML on Thursday March 13, 2014 @10:14AM (#7391881)
It is, effectively, the only country in the world that does this. It's shameful.

http://hodgen.com/does-the-united-states-stand-alone/

Re:Why you might not want to incorporate in the USA by nitai on Thursday March 13, 2014 @10:25AM (#7391957)
Wow... I really like the US, but these draconian laws make it difficult to justify moving there. Of course, if you grow up like this and don't know better...
Re:Why you might not want to incorporate in the USA by pavel_lishin on Thursday March 13, 2014 @03:00PM (#7394025)
> Of course, if you grow up like this and don't know better...

Also, if you don't plan on moving out of the country, which the majority of Americans (and probably citizens of most countries) don't.

Re:Why you might not want to incorporate in the USA by sosborn on Thursday March 13, 2014 @07:05PM (#7395774)
To be fair, the earned income tax exemption is sufficiently large enough that you will be making six figures before you have to pay a penny in U.S. tax. You still have to file though.
Re:Why you might not want to incorporate in the USA by sschueller on Thursday March 13, 2014 @12:49PM (#7392986)
Wasn't part of the reason people wanted independence from the British to avoid paying the king's taxes?
Re:Why you might not want to incorporate in the USA by beagle3 on Thursday March 13, 2014 @03:08PM (#7394109)
They refused to pay without representation. But US expats can actually vote from abroad.

(Not that the votes seem to matter - you get to choose which faction of the military-industrial faction gets a salary this year, but not anything of consequence)

Re:Why you might not want to incorporate in the USA by CaptainZapp on Thursday March 13, 2014 @09:50AM (#7391756)
That's actually a huge problem for US citizens living in Switzerland.

Since the US nowadays puts so much pressure on Swiss banks most - if not all of them - are extremely reluctant to open bank accounts for US citizens.

Re:Why you might not want to incorporate in the USA by nitai on Thursday March 13, 2014 @10:09AM (#7391849)
It is not only an issue for US citizens, also for people who have been with the same bank for 30+ years and now leaving abroad. You can either pay tones of fees and at least have $50k in the account or you are forced to take your money elsewhere.

Luxembourg and Lichtenstein will gladly take you money, though ;-)

Re:Why you might not want to incorporate in the USA by psuter on Thursday March 13, 2014 @11:00AM (#7392203)
Actually, a little known provision of FATCA was introduced precisely to prevent financial institutions to discriminate against American taxpayers. If you read French:

http://www.letemps.ch/Page/Uuid/0a130fdc-238a-11e3-8a42-a451...