kh_aaryan3 Posted February 15, 2015 Report Share Posted February 15, 2015 Hi All. I could not find an appropriate section so I thought I will start here. I am on Green Card and 2.5 years to go to citizenship for family. One son is dual citizen(Canada, US), One Canadian and Wife has Canadian citizenship by naturalization. I have Indian citizenship. I was curious about the strategy if we with family live in India, with atleast my wife or I getting US Citizenship. But I am not sure if we both should get bearing in mind the tax consequences of world wide income. I have a company here (LLC) with both husband and wife working as consultants. I hope to continue the same while in India(some travel to US might be needed). I may continue to expand consulting business or start new one in India, depending on situation. Canada won't tax you on world wide income but US does. So what could be the best scenarios that both of us take citizenship or just one(me or my wife?). Are there any references to people and their stories who did something similar or any advance planning required? Appreciate your input and thanks in advance! Aaryan Link to comment
pontevecchio Posted February 16, 2015 Report Share Posted February 16, 2015 Treaties exist to avoid double taxation between the USA, Canada and also India. You should also be aware that INDIA does not recognize double citizenship and know the ramifications in terms of owning Certain property types in India. Link to comment
kh_aaryan3 Posted February 16, 2015 Author Report Share Posted February 16, 2015 Thanks! I understand that I cannot buy Agriculture land in India. Link to comment
pontevecchio Posted February 16, 2015 Report Share Posted February 16, 2015 A CPA with knowledge of international taxation should be better equipped to guide you about tax implications of any decision you make. Maybe a consult so that you are prepared. Link to comment
GcLLC Posted February 17, 2015 Report Share Posted February 17, 2015 If you have an LLC in US, then you will be taxed for your share in the US if you are a US citizen. If you start a company in India, then a lot depends on the company structure. If you start a private limited company, then it is the equivalent of a C corp in US. The company gets taxed and you owe only taxes on any dividend paid. Dual treaties will probably overcome that. By Indo-US treaties you can avoid double taxation. And Indian taxes are not that much lower when compared to the US. Finally, if you are an Indian citizen residing in India and have foreign transactions, FERA is a pain. Link to comment
kh_aaryan3 Posted February 21, 2015 Author Report Share Posted February 21, 2015 Thanks for ideas! What type of structure will be favorable S Corp or C Corp? Link to comment
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