This has been discussed so many times, but the more I read about it, the more confused I get.
I know that American income taxes are worldwide, but does this mean that my offshore corporation will be taxed as well every year?
Let's say a US citizen opens an offshore corporation for trading, where there is 0 capital gains.
He is the sole owner of this corporation .
He doesn't take any salary.
Trade is conducted from the United States.
1.) Do I still have to pay year-end income tax from a corporation in the US? (no salary was paid)
2.) If I don't take any money for 5 years and then close the account, how much money will I have to pay to the IRS?
3.) Do I have to report to the IRS about the ownership of such a corporation ?
I feel like the IRS will tax me every year as soon as I bring the money back.
If I decide to start a business, can anybody help with company formation?