International tax planning for small business doing business in Mexico is difficult because of the controlled foreign corporation tax law. Saving taxes is accomplished by avoiding these laws. American small businesses can now use a dual resident corporation to maximize their tax savings .
The problem is double taxation (U.S.. and taxation in the foreign country). In some cases you also pay your state taxes. You will learn how to have only a single tax with the video below. Your state tax is avoided by having a "non-grantor" Nevada trust own the company.
The dual resident corporation allows the maximum foreign tax credit, a simple tax return and tax savings from operating losses.
The dual resident corporation is most effective if you are doing business in Europe, Latin America or Asia. This one of the few places where an IRS ruling is a must if the corporation has been in existence for more than a year. A mistake is income tax fatal.