"Do I Make Enough to Move My Business Offshore?"

how much money do you need to be earning before it's worthwhile to move your business offshore someone recently commented and said if you're not in the top 1% of income earners there's no reason for you to go offshore that's simply not true but I'm going to tell you how exactly how I approach this in this video hi I'm Andrew Henderson I've spent now well over a decade learning and researching and strategizing all the different ways to go offshore both from a tax perspective from an investment perspective from a living perspective and I've been helping people do this for a while so I look at the question how much do I need to make before I go offshore a bit differently than someone who has only theoretical knowledge because to me there's the theoretical math equation and there's also the behavioural equation what I've said before is you know that you are can go offshore when the cost of putting that structure and that strategy in place and paying that money is less painful for you then actually paying the tax that you're trying to reduce so for a lot of people who are just starting out the idea of having to go through the time the effort their research the learning and then the cost of putting a proper offshore structure in place it is or at least should be more painful for them to go through all that then just to pay $5,000 or $10,000 okay the issue where the the behavioural comes into play with a math problem is you can go out and you can find one of these companies that will set up your offshore company for six hundred and seventy two dollars the challenge is having worked with people for years most people who have done that or even hate a bit more never get the entire puzzle set up properly and what I see if there's a lot of people who do the six hundred and seventy two deal are offshore company formation set up a bank somewhere with a minimum deposit and then just run their business that way is there often missing a piece of the puzzle so they've done it very cheaply but the reason that they're succeeding is that they just haven't been caught yet perhaps they haven't properly checked out of their home country perhaps the companies and set up correctly and they're just not doing the audits properly or they're just skating by perhaps there's some kind of problem rarely just someone come who put one piece in place where there's not some kind of problem and I'm just saying it's only a matter of time before they find you we have a lot of offshore mistakes videos you can watch where I talk about things people misunderstood when setting up their plan so does it make sense if you have $50,000 a year in business profit to go offshore and set up a company the math problem may work if you're gonna do it cheaply but what will not be cheap is if you do it wrong what happens three years from now and when something or something comes back to haunt you so my opinion is this first things first we have to determine do you even have a business at all sometimes someone has a hobby or a side hustle or some kind of personal income from like consulting where they're just doing it all on their own it's not really a business now as is often the case the laws in the US are going to be a bit different than the laws for most of the rest of the Western world in some cases if you are just running a business on your own you're just doing consulting having a company may not even help your tax situation so the first thing I want to do is a my a profession or a my a business that's gonna dictate how I set up my company because if I'm a profession the most important thing to do might simply become qualifying for the foreign earned income exclusion if I'm an American or becoming tax non-resident if I'm from somewhere else okay that alone might solve a lot of your problem and again this is not broad advice because it's impossible for me to diagnose your situation but what I'm saying is that's the first thing to start with okay what's my personal tax situation if I am a US citizen or a US person and I'm gonna be living outside of the country to where an offshore company would help me will an offshore company help me if I'm just running a small business or if I'm a one-man show if I'm a citizen of another country France or Belgium or Canada or whatever am I sure that I'm not a taxpayer in that country okay because then the question is well where am I going to be spending my time outside of my country and what's my tax situation there so both of those pieces of the puzzle are set up correctly then that's probably the most important tax strategy that you need in place if you're in the sub six-figure level okay from there if you have a legitimate business that has other people working for it then the company could become beneficial but not everyone needs a company okay and so it's important to ask not which company should I get or how should my company bank but do I even need a company in general you know I work with six and seven figure entrepreneurs that the the realm that I've been in almost my entire life since starting a business at 19 years old and so for me the company structure from from asset protection to no legalities to just separating myself in the business that makes sense but if you're just starting out it may not make sense above that when you get into the six-figure realm it's really when I think it starts to make sense for me I look at someone who is a quarter million three hundred thousand dollars and up because at that level you can really start to be getting professional advice you can really start documenting things on a tax level you can set up companies with higher quality people in potentially higher quality jurisdiction it's gonna get a better standard of service you're gonna make sure everything's done properly it's what I call the success tax there are times when I call my lawyer this is Antrim I even call me you know you're paying me like all this money an hour to ask me a question I said yeah I pretty much thought you were gonna say that answer to the question but when you're successful you want to have everything double and triple-checked and so from my perspective liking to to dot all the eyes in the cross all the t's it really starts at that 250 to 300 thousand dollar level where you can really start to seek the next level advice start to think about it at the six-figure level start to really dive in at the professional level it 250 to 300 thousand dollars that may put you in close to the top 1% of income earners in most countries but to think that you have to be a multi-millionaire or a gazillionaire to do this stuff it's simply wrong what you need is number one the ability to commit to executing an offshore plan that means you're gonna have to change a few things in your life it means you might need to move overseas it means you might need to incorporate your business somewhere else or move some of your employees somewhere else you're gonna have to make a few changes okay but if you're willing to do that then getting the proper structure in place is doable it just has to be something that you're willing to invest in if the ROI is there and I think it 250-300 the ROI is definitely there if the ROI is there and you're willing to commit to it that's when it really starts to make sense hi I'm Andrew Henderson from nomad capitalists I wrote this book which you can find on Amazon to distill a lot of the stuff we talked about in these videos and a lot of the stuff I've learned over the last decade plus traveling all around the world teaching you about how to legally reduce your taxes build your personal freedom and create wealth faster definitely get a copy of this book if you want to learn more now if you want to watch more videos make sure you subscribe to our Channel and make sure you click the notifications bell so you never miss one of our new videos with more tips on how to go where you're treated best and if you're already a six or seven figure entrepreneur and you'd like to put these strategies in place for yourself go to Nomad capitalists comm and learn about how I can help you

  1. Hi, great content. Was hoping you could do a video on obtaining work visas for countries when working as a 'digital nomad'. No one ever seems to mention it so I presume most are entering countries on a tourist visa?? Wouldn't it be illegal then to engage in work as a 'digital nomad'? It'd be great if you could clear this up. Cheers 🙏

  2. HI Andrew. Can investment income be classified as a business? Ie 250k pa from a 7% yield with funds invested in a vanguard fund?

  3. I think it’s even more important to set up a structure if your income is $250,000 or $300,000. You have far more to protect because your income is strong but not that big. You have far more to lose at $250K because that’s all you’ve got. Starting over because tax or a law suit wipes you out is tough at that level, a million dollar income can give you more to work with in an emergency.

  4. …Therefore; the Nomad Capitalist "it makes sense" threshold is not the top 1% of personal income earners ($718,000/annual income), it's the top 5% ($299,000/annual income).

    Most people I know don't care to continue to sacrifice their lives chasing the "I gotta have" X $ Million per year income carrot, in a insecure, misguided attempt to buy their way into the look-at-me illusion of modern Landed Aristocracy. Income is important, very important. But enjoying a lifestyle based on balance is far more valuable. That is true Wealth. The U.S. Foreign Earned Income Exclusion of $103,900 USD (top 13% of Income earners), when set up correctly, can allow for a magnificent standard of living in most Countries where the USD has a value multiplier.

    I could base out of my €85,000, 140 s.m. Ocean view apartment in Tanger, Morocco, and travel (Live in) the EU for 6 Months on just a U.S. passport in the Spring & Fall. In the winter I can base 3 Months in my 1.3M MYR ($300K USD) Johor Bahru, 1400 s.f. Malaysia flat – which pays for itself by AirBnB the other 9 Months – and get in and out of Singapore daily, as well as travel South East Asia & Oceania cheaply. 5 weeks can be spent can be spent back in the US off and on. Granted I'm manipulating Credit Card Bonus points like an addict for free business class travel, and I may have another Passport, but 70% of my waking time is mine. No fancy tax strategies needed. No reason to renounce… at least not yet.

  5. I think if you can be be mortgage free and enough money to save say at least $2,000 per month…that's enough.


  7. hey Andrew always looking forward to your educational videos, im also a big fan of the your book Nomad Capitalist. Was wondering If you could do a video on which businesses can potentially let you have a nomad lifestyle if managed correctly.

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