Doing Business Internationally Tip 1: Choose the Right Business Structure | Charitable Tax Deduction
VIDEO TRANSCRIPTION – Doing business internationally. Tip one, choose the right business formation. I was speaking to a client roughly about two years him looking at his options of building houses in his native country, Ghana.
Now, just a few weeks ago, we talked about setting up a business plan that will work for him. His brother is also a business partner. They donated roughly about $150,000 each.
Hi, I’m Steven D. Cooper. Your tax strategist, also known as Coach Coop, with Coopers Accounting Service, because your financial freedom matters if you’d like to learn more great tax tips, download our popular financial guide at our website, yourfinancialfreedommatters.com, or click on the link below this video.
As we were talking to both brothers, he asked a few questions. One, how could he bring the money over? With limited taxation. And we also talked about the banking structure as well too. So the business formation I gave to him was a nonprofit. He can bring the money over.
There’s no taxes on it. He also asked another question. How can I take the money out? I said, well, we can put yourself on payroll. One of the questions that came up that he did not consider was, let’s look at what banks are in Ghana as well as what banks are in United States.
So if he needs to transfer money, it makes it a lot easier as a result of this. Ask another question. Hey, Coop, I put in $150,000. How can I recoup my money back?
I explained to him, hey, you can write this off as a tax donation. I yes. So we’re going to reduce your taxable income as long as it’s less than 150 % of your AGI, AGI, adjusted gross income. Quite happy about that. Quite happy that he can bring the money back to the United States tax free as well too.
Once again, he can put himself on payroll. Recap, he can also write off $150,000 as a charitable donation as well too. So it’s a win, win, win, win situation all around.
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