Bob

Being a USC, there'd be very little advantage of doing that though as he'd still have to declare and pay taxes, just without the benefit of tax treaties and being able to claim them.

tuxedocat

Don't forget the 15% SE tax you will pay in addition to any federal tax.

penguinsix

For US Citizens, it doesn't really matter. In fact, owning or having a substantial stake of a foreign entity is somewhat complex and leads to additional tax return forms, many of which are rather complicated. He'd have to report the ownership, along with the company financials to the US IRS, along with reporting any financial accounts under his and the company's control, not to mention the personal bank accounts that he might have overseas. And should he actually wish to use any of the money from profits in the company, he'll have to report that as 'income' on his taxes anyway. The very fact he has a foreign entity may be considered a 'red flag' for an audit as well.

McZaki

Blimey! That’s torture.

This US obsession with taxes is stupendous considering they don’t even offer you a decent public health care system – I’m not a politics person and don't engage in such discussions but seriously why spend stupid amount of money on foreign expeditions and provide aids/charity to corrupt regimes whilst people at home can’t even get flu jab – anyway that’s off topic, apologies.

Erics_dad, Stay where you are lad – the weather is what it is, throughout Britain. Better move out of the NW to somewhere proper. Considering your worries in Blighty, I feel that moving back to the States could be a good one for you and family however it will cost you an arm and a leg particularly in your situation, as a self-employed.

HumphreyC

I think - if cost of living is your concern - then you probably picked the wrong state to move to. If your job moves with you and you don't need to be near a regional hub for business purposes then no point making things harder for yourself. In any event cost of living is dependent on so many things - for example you could have access to a very good health plan at a cheap rate like I do (through my wife's job) but then (theoretically speaking) she could lose her job - then I get in an accident and get screwed on medical costs - suddenly the NHS looks like very good value.

Major consideration with you haven't talked about so far is family. For example, if your wife wants to visit her family from California it's a long and expensive trip which could be difficult if she get homesick and needs to make a lot of trips. She will likely not have much of a vacation allowance in which to make it.

I agree that UK weather sucks and most people seem to be thoroughly miserable at the moment (at least they were when I went over this December). With emigration though you are in for the long haul. In 10 years time the weather will still be bad but the economy will likely be in an up-cycle and inflation/wage stagnation won't be as much of an issue. You might have a good year in your online business and will suddenly be earning 90k+ in an area of the UK where the COL is relatively cheap.

Bink

I'm from Berkshire! (Maidenhead to be precise).
I agree that you can definitely live on less and it not be 'rough'. I certainly wouldn't have described my life as 'rough' either. You have to budget yes, but rough, no. To be honest even at 100k you have to budget.

Sally Redux

Surely £100,000 is a good salary in the UK? I admit house prices were a bit of a shock last time I looked but still...

Bob

Aye, it's all about relative budget, but my mother, living in a decent part of Oxford, another expensive city is living off a pension and part time work, so nowhere near that kind of money and is able to afford to go on holidays with friends in the EU in Easter/Summer hols and the odd trip to Japan as well as plenty of weekend coach trips to Wales, London and other places to see the sites she's never been to before, or to take friends who are visiting her from Japan.

She has a more active social life than I do.

Sally Redux

Same with my Mum.

Bink

My Mum is still in Berkshire (also not particuarly cheap), living off about 30k GBP I'd guess but then again she has no mortgage, no car payments and is just paying the basic bills, food etc so does have money to spare for trips etc too. It depends on the circumstances. That kind of money with a family, mortgage and a car payment doesn't go very far so like you say it's all relative.

jackattack

the other thing to think about is schooling for your kid. How important is this as one of the factors for relocating?
House prices (in CA at least) are typically directly correlated with how good the schools are. The better the local school, the higher the house prices and rent. With your limited budget, private schooling isn't an option.

Bob

My mother still has a mortgage and car payment. No kids and a OAP bus pass probably helps loads, but yeah, it's all about expectations and what you do with it.

She doesn't drive around in a big massive car or drinks like a fountain etc. Though she drinks out more than I do too. It's a little depressing actually

JAJ

If you sponsor her for an Immigrant Visa, she can work immediately upon arrival in the United States.

If you spent a total of 5 years in the U.S., including 2 years after age 14, then he's already a U.S. citizen. You should have documented this already, however if you haven't done so you need to get for him:

- a Consular Report of Birth Abroad;
- a U.S. passport; and
- a Social Security Number (you need this to claim him as dependent on your U.S. tax return, have you not already been doing this?)



Not necessarily. If you've not spent enough time in the U.S. then he's not an American, you'll have to sponsor him for an Immigrant Visa and he can become a U.S. citizen that way.

And he can't keep English citizenship because there is no such thing. He may however keep British citizenship.

F1toOPTtoH1BHopefully

The most shocking thing on this thread is eric_dad's high mortgage! In the North West? Over $1000 for a mortgage? My parents live in detached house in Cheshire and pay under 250 quid!

Bink

But when did they but it? That sounds right for a 40-50k (GBP) mortgage. $1,000 sounds right for more like 150k (GBP) mortgage.