Business Week recently ran an article on how to pay no taxes. Is it possible? Of course. Don’t make any money. But is it possible to make money and pay no taxes? That’s also possible, but it’s going to cost you a lot in legal, accounting and tax prep fees if you want to do it legally. In some cases, you end up trading paying big tax fees for paying big CPA and legal fees.
My suggestion is to start simply first. Make sure you have a business. Take all of your legal deductions and keep good records. Use a pension plan. Make sure you’re in the right business structure or structures. Plan ahead, way ahead. We plan at least 1 year, and preferably 3 years ahead for most of our tax clients.
After you’ve maximized all of the simpler tax minimization techniques, you can move on to international tax planning. The rule of thumb is to stay out of international waters unless you’re paying at least $300,000 in taxes now. Otherwise, the fees just aren’t worth it.
Here’s more information: