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Ask HN: Does it make sense to hold my shares in an offshore company?
I'm about to start the process of incorporating for a startup. The company itself will be in the UK or the US. However, I'm considering creating an offshore company (Honk Kong or New Zealand maybe) to own my shares. If we ever sold the company, my offshore co would make the profit, receive the funds, and then I'd be able to keep the profit offshore and only pay tax when I bring the money into whichever country I'm living in.
Does that make sense as a strategy? I'm assuming more founders would be doing this if it was a smart strategy, I'm struggling to find any info online, which leads me to think it's not common practice.
Hoping to put off any discussion of tax dodging, my goal is not to avoid paying taxes, but to choose when to pay them. I don't necessarily want to pay capital gains at the time of the sale, especially if I want to reinvest in other businesses, etc.