This is the current crux I face. All high leverage exchanges for crypto bar Americans. And increasingly there are almost no offshore or foreign non American Forex exchanges and CFD (which these exchanges are forbidden to offer these types of CFD products to Americans per the rules of the SEC and CFTC) which will offer services to Americans.
I have read around that if you can prove your residence is outside the US or trade as a non US, foreign entity that you can not only simplify taxes, but also not get banned by the exchanges.
Unfortunately many of these exchanges are anonymous and can't be registered with KYC and so forth to prove you're even a legal entity. And the European exchanges for Forex require 5 million if I'm not mistaken.
a) Is it true that mister tango is the easiest EMI to attach a foreign bank account to, IBC, euro corp etc, regarding crypto?
b) If the exchange ask for KYC documentation, how do you send them proof you're a legal entity IBC. I don't think you could ever attach your own passport. You really can't get around this based on what I'm told, you need a representative. You can't register a IBC to a european Forex exchange or to Kraken with an American passport.
Based on a few other threads on here this entire issue of taxes and corporate bank accounts is without a doubt hyper complex.
I know I can bill an invoice as a consultant and declare the income on subsection F for personal income, and file a separate arduous corporate tax report. But I need to avoid getting the exchanges into legal trouble, avoid getting into trouble with the IRS, and avoid getting banned by the exchange.
The following is an example of an approach:
The nominee is arranged or would be provided by OCI and as part of the incorporation package you receive a number of (private) documents which note we hold the shares and directorship for you as nominee subject to your instructions. These agreements are legally enforceable and thus protect your underlying ownership of the company. We also supply pre-signed transfer documents enabling you to transfer the shares/directorship to yourself at anytime. (We can also supply you if required with a board resolution preventing us from changing bank account signatories or shareholders/directors without your written consent).
In terms of practicalities how it works is this:
The IBC gets set up with a Nominee Director/Shareholder
The underlying beneficial owner of the company is appointed, in writing, as Financial Consultant (egForex Trading Manager)
As part of his/her brief the owner is given the authority to trade certain markets/accounts on behalf of the company, reporting to the Director
The IBC director completes the Brokerage Account Opening forms
A Bank and/or Trading account is opened with either the owner (as Consultant/Trading Manager) nominated as the signatory or given the internet banking codes or other authority to be able to make/place trades
The IBC starts trading with the placing of all trades (buy and sell orders) organized by/authorized by the owner who, in effect, retains controlof the funds.
If for legal reasons the company owner doesn’t want his or her name to appear as signatory on the IBC bank or brokerage account then arrangements can be put in place for the Nominee Director to undertake this role (acting on the instructions of the company owner)
Provided the IBC is (and is seen to be) managed and controlled from Offshore this system should:
Give you access to a wide range of brokerage houses and trading platforms
Enable the profit to be earned by the IBC “Offshore” potentially tax free whilst at the same time affording the underlying owner of the company the ability to oversee the company’s finances and trading endeavours.
Ideally for this structure to have maximum chance of financial success the shareholder of the IBC would be an Offshore Trust or Private Interest Foundation
Links to corporate application requirements on kraken
https://support.kraken.com/hc/en-us/articles/115004862007-Corporate-and-Institutional-Accounts
https://s3.amazonaws.com/bitex/blog/Kraken+Corporate+Account+Application.pdf
Topic: Day Trading as a IBC/Legal Entity to avoid residency restrictions (Read 101 times)
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