Offshore accounts
This year I became a .05% non-voting shareholder in an LLC that is located on Nevis in the Caribbean. The deposits that I make to that company are considered loans and I earn interest from those loans. They have an offshore bank affiliation with an integrated function in their dashboard that would allow me to directly deposit funds to that bank and have a debit card I could use to access and spend those funds. I know it sounds like big business but really I’m just a very small time investor trying to understand how to best protect my assets all while remaining completely legal. According to US tax laws, am I required to report this income or bank account if it never has more than $10,000 in it? If not, does the $10,000 limit apply to a combined total of deposits at the one bank over the course of a year or rather no more than $10,000 on any given day of the year in that account? What else might I need to know? I will have a payout coming in December and I’m trying to get all my ducks in a row.
