How to have a corporation with absolutely no IRS scrutiny

Do you want to own a corporation and not have to file a single return with the IRS?

It is possible, but thanks to new American legislation (FATCA) the conditions are set to change:
- Corporation, LLC or partnership established outside of the United States
- No "US person" (American citizen, dual national or Green Card holder) may hold more than 10% of the shares of the corporation

For example, if a German citizen starts a corporation in his own country, he doesn't have to file any paperwork with the IRS! Of course, that's not really astounding since the IRS doesn't normally have any control over German corporations.

However: With the new FATCA legislation, if a US person owns 10% of the same German company, it will soon fall under IRS jurisdiction and the owner will be obliged to file reams of unfamiliar paperwork with the folks in Washington -- just because of the presence of the US person.

Now, no sane German citizen living in Germany would willingly submit to both the German tax code AND the American tax code (currently > 70k pages including many obscure provisions directed at American persons residing outside of the United States with huge penalties for noncompliance), so this can only lead to two things:
- No one will want to have a US person owning > 10% of their non-US company
- Anyone currently with a US person owning > 10% of their non-US company will seek to terminate the relationship with the American

Therefore, our US Congress has created legislation to track down a few thousand rich tax cheats, but at the same time all US citizens are transformed into untouchables in the society of world business. Starting in 2013, companies around the world will choose between compliance with TWO tax regimes or not allowing Americans to own more than 10% of their company.

This means that across the globe, avoiding a dual-taxation regime imposed by the American IRS will require excluding American participation in businesses. Thanks, US Congress!