Hi there.
Someone I know is a USA citizen but working abroad. He wants to renounce his citizenship.
He is working in partnership with someone, and forming a limited company.
Rather than registering to own 50% of the company now, he wants to work for the company for free for the first several months, and then buy the shares off of the other partner at a later date, in order to be tax effective.
Is this a legitimate action or would this be looked upon as illegal tax evasion?
Someone I know is a USA citizen but working abroad. He wants to renounce his citizenship.
He is working in partnership with someone, and forming a limited company.
Rather than registering to own 50% of the company now, he wants to work for the company for free for the first several months, and then buy the shares off of the other partner at a later date, in order to be tax effective.
Is this a legitimate action or would this be looked upon as illegal tax evasion?