Yeah, it is in theory, but even small businesses incorporated abroad with US persons involved in them put huge reporting burdens on the US person. Form 5471 and friends make this stuff look straightforward. Most of the time I find my frustration isn’t about how much money I am paying in taxes, but just how much dull and confusing paperwork I have to understand. Even trained professionals who spend their whole lives doing this get confused by US tax compliance for people who have international lives. The US needs to realise how important the a positive reputation in its expat community would be for its soft power.
I've always wondered of it was possible to move to the UK by starting a business that required a UK presence and using that as a reason for an indefinate residence permit?
Nope. You cannot really sponsor yourself working for you own company, that would be such an obvious loophole.
I've been living here 3.5 years, 2 on a YM visa, 1.5 on a work visa. Unfortunately, my 2 years on YM don't even count towards the 5 required to get ILR. You can build up an entire life here & all it takes is for your work visa to be disappeared and then you have 1 month notice to gtfo the country otherwise you're "overstaying".
After 3.5 years somewhere you definitely build up "a life" there, but the UK gov offers no protections at all. Until you hit that 5 year mark they don't give a toss about you.
As long as you mean 5 years of uninterrupted work visa (YM doesn't count) where losing your visa forces to to leave w/ 1 month's notice, then sure, they have "open borders".
I assume you mean a business bank account for the banking?
Challenging, and potentially criminal.
If you have any management authority over the bank accounts owned by the business, then those accounts fall under FACTA.
Hell, if you are even just an employee, but can sign on the bank account, then you have to report it to the US authorities.
So a 'business account' doesn't get you out of the US required reporting.
Also, the implication is that you'd use this for 'day to day' banking. Using a business's funds (a business bank account) to cover personal spending is typically criminal (embezzlement).
So not a solution.
And this doesn't solve the other problems, like pension savings or other financial products.
Unfortunately if you have equity in the business, you'll get taxed. However, if you are only an employee, you get an exemption on something like $150,000 of income, housing, and other expenses. So as a US citizen, you can avoid taxes only by living outside the US, and being an employee of a non-US company. If anyone knows otherwise, please correct me as I'd greatly benefit!
nitpicking. You don't get out of taxes, you get out of paying US taxes (on earned income, you still have to pay capital gains).
But you still have to file US taxes. As an expat, you have more forms to fill out.
AND the bigger challenges are banking. You still have to find a bank willing to open an account for you, and good luck getting more complex financial services.
