Post: #1

Hello all,


I find myself in a peculiar situation.

I have overstayed my tourist visa and am now ''out of status'' in the US. I expect to be this way for up to the next two years.

I have been living like a nomad, drifting around Asia, the US and Europe for the past two years.

I run a small biz on the internet that pays a reasonable $60-80k or so.

In the meantime, I am legally required to pay taxes and intend to.

I can get an ITIN which is basically a social security for illegals. I can then register as a self-proprietor.

My question is, where is a good place to make my tax base in the US?

I will be living in IL but won't be on any lease etc for obvious reasons.

Should I just pay IL taxes or do people with internet businesses base in FL, Delaware etc?

Any thoughts/feedback/comments appreciated. Recommendations on an accountant appreciated also.

J

Post: #2

Where is your small business based? Wouldn't you just need to pay taxes for your home country?

Just stay illegally in America, you will be treated better than if you were actually a citizen (unless you are of European decent).

Post: #3

Yeah... don't claim Illinois. They keep raising taxes.

I think places like North Dakota, Michigan, and a few others have some decent tax breaks for businesses.

Post: #4

I'm not a lawyer, so ... If you don't already have a social security number, or if you do but your income is not tied to your SSN then there is no way for government to tax you, or to connect your identity to your income - just go about your business as you did before, and don't file any documents anywhere.

Post: #5

Thanks all for the replies.

Plenty to consider!

Post: #6

This isn't legal advice.

1. IRS is not after you because you are an illegal immigrant, they just want your tax money and don't care where it comes from.
2. You can get a mailbox pretty much in any state you want. For example, Mailboxes Etc. provides this service. I don't know, though, how it works if you live in one state and make another one your tax base, or if you can do that at all.

Post: #7

this also not legal advice or tax advice. It is my opinion on a theoretical situation and not specific to any one person.

Do not set up a sole proprietorship. Set up a C Corporation and be a shareholder. This way the company can exist in the US if you leave the country or otherwise. You can pay yourself in your home country and do dividends that way as well. You'll need to pay US withholding tax and file tax for the corporation, not yourself. You will file taxes at home.

It also makes it easier to pick the state in which it is domiciled

Why? You're not working in America, you're a an investor in a corporation on a tourist visa that has overstayed.

Also, the only way to be forgiven for a visa overstay is to get married.