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Employment Contract Without a US Presence

As an owner or shareholder, you can pay yourself a salary through your US company, for example a C Corporation. To do so, you need an employment contract drafted by an attorney. Drafting this contract costs $350. Please note up front that this service is an add-on and can only be ordered together with a US company formation.

This option suits entrepreneurs who live in low-tax countries above all. With an employment contract, they can draw a tax-free salary there from their US company.

To protect you from problems with the IRS, Mount Bonnell Advisors takes care of the right employment contract for you. It is drafted by an attorney and allows a salary to be paid to shareholders abroad. The contract covers several criteria, such as an exemption from having to be present at the workplace. This means you declare that you carry out your work entirely outside the USA, so you do not have to work on site at the company's US office. In the contract for paying a foreign salary, you also state that you take care of taxing the income yourself. This relieves the US company of the duty to withhold deductions in the States and pay them over to the authorities.

You will find more ways to take money out of your US company tax-efficiently on this page; to learn who is behind the firm, see The Firm.

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