5 Business Tax Tips Entrepreneurs Must Know about Nevis Corporations
Running a business is tough enough without having to worry about burdensome taxes, huge regulatory oversights, yearly audits, lawsuits, and other compliance hassles. That's why at Palm Tree Research, we chose to set up our company on the beautiful island paradise of Nevis.
But there is one big aha moment: if we had had that sooner, we might have decided to look elsewhere before we've even gone down that road.
Here are four reasons why incorporating Nevis might be right for your business One big reason that you might wanna look elsewhere before your head explodes.
Reason Number One. No taxes are paid on any income earned outside of the country.
That means that as long as you're not earning money within Nevis, you're not paying any taxes in Nevis. Let's say, for example, that you're a graphic designer, living in Panama, and billing out to a client in Canada. You can now bull using your Nevis company to that Canadian company. And because of Nevis laws, your Nevis company isn't paying any taxes.
Then when you're Nevis company pays you in Panama, because Panama also has a territorial tax system, you're now living completely tax-free, and you've really given yourself a 30 – 40% raise instantly by saving on that taxes.
Now, as an American citizen, laws are a little bit different. Make sure you talk to your local US tax attorney to make sure that works out because, with the US, you pay taxes on your worldwide income Next.
Reason Number Two: Nevis has some of the toughest privacy laws in the world.
The government guarantees the privacy of offshore companies and bank accounts and Nevis. Since your registration is not even listed anywhere in public registrations or public documents, your corporation is anonymous, and you're anonymous.
That makes it nearly impossible for anyone, anywhere in the world, to see you to get any access to any of the assets owned by the corporation, which makes it considerably stronger than us LLCs, where the corporate veil has been pierced several times.
That's never happened to a company in Nevis. So if you like your privacy, Nevis is a great way to go.
Reason Number 3: Nevis LLCs can be created with only one director
That makes them ideal for solopreneurs or start-ups.
And this is great because many companies in many countries require at least two partners before you conform to any type of LLC or corporation and, well, the single-member LLCs and limited companies.
They're not completely unique in the world of offshore accounts. But combining that with the strong asset protection of Nevis makes it a very powerful option, especially for solopreneurs and investors looking for really good asset protection. The final reason or final reason that you might wanna consider LLCs is they have easy compliance without any yearly audits.
Reason Number 4: Easy Compliance
I don't know about you, but I hate mountains of paperwork. I hate the threat of audits, and I hate tons of regulations.
When you're running your business in Nevis, you can hold your company meetings anywhere. The only records you need to keep are your financial accounting records to reflect the company's actual financial position. Which is something you're gonna wanna keep for your business anyway.
Those records could be stored anywhere. They don't have to be kept in Nevis, and you can create any type of operating agreement that you want and the works properly with your business and the type of business you're running.
But opening in Nevis company isn't all fun and games. There's one thing that drove me around the bend, and it probably would have made me consider going elsewhere had I known how much of a hassle it was going to be.
And that is that I…
Problem Number 1: It can be difficult to use because getting a bank account for Nevis company is nearly impossible and is a complete pain in the ass.
This isn't unique to Nevis. Most of the Caribbean nations are running into this more and more, which is why many people are starting to say that Nevis corporations are dead for an offshore option.
That's not entirely true, but it's getting close.
Nevis banks just introduced new policies that they won't open up a chance unless you're putting in a minimum deposit of $100,000. And the number of hoops that you have to jump through to open up on account anywhere else with the Nevis Corporation will keep you running and running around the bend with lawyers. For probably several months.
It can be done. sometimes, but it is a real hassle. And they want you to prove that you have a viable business before you get out there and run a viable business. They don't seem to understand that running a viable business is impossible if you don't have a bank account.
So one of the best ways to get around that is by using cryptocurrency, which will wipe out that problem once and for all.
Setting up a Nevis Corporation is super easy and quite fast to do. There's not a whole lot to it, and you don't have to visit Nevis to do it.
It'll cost you around 1200 bucks, and you'll be done.
And once that's set up, you could start running your business and invoicing without paying any taxes. And that's a beautiful thing.