Say I am a citizen of Malaysia.
I am thinking of either opening a corporation in Seychelles or Delaware LLC.
As far as I know, both are tax free, cheap, and stuff. Delaware LLC is even cheaper.
Delaware LLC, for tax purpose, is a tax "flow" entities. So if you're an american citizen, you will pay tax as if the income of the LLC is your income.
But what about if you are a citizen in other country? From say, Malaysian's point of view, is delaware LLC any different than Seychelles corporation? Both are just foreign entities right?
Must you pay tax for any income the delaware LLC have? Assuming you don't repatriate, etc.
Note: LLC is a flow through entities. Basically if I were american citizen the tax will flow through as if I don't have LLC. However, given that I am not an american citizen the tax will flow through a foreign entity. From US/Delaware points of view, the tax flow through outside. From my country points of view, an LLC in delaware owns tax. So no body claims they can tax me.
That's the idea.