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Thank you for your answer.
As to the FBAR filing, I am trying to not let my account hit 10k at anytime. It has only come to 7500 at one point but because I have so many business expenses in developing my labels, and other expenses, I can easily draw down before next influx of funds comes in.
And as to form 8938, I definitely do not have assets even close to this . At least I do not foresee this happening this year. Of course, both points 1 and 2 will be blown away once I sell my first whole container of wine to China, and then I guess at that juncture I will be subject to filing.
And to number 3), I do not yet take any personal income distribution at all. All disbursements are strictly for business expenses at this time.
And to my wife's concern, does it matter of some of the consulting work takes place in America( ie- I help a distributor sell my wine to restaurants or shops when working in the field with their sales reps, or conduct training seminars?). The payments from distributors would still only go to my HK company.
Finally, when I do have to report the FBAR, will the IRS ever want to see my records from my overseas accounts? Can they actually "audit" me over there? Or am I a little more secure from auditing than if I was only in the USA? No that I would try to do anything wrong, I just feel more secure having an overseas business for many reasons including protection of business assets from frivolous lawsuits and hopefully less burdensome scrutiny from tax audits, etc.
HI again Danielle,
You were very helpful before so trying to stick with you again.
I still have my HK trading company. New question/ dilemma, is, my wife and I just bought an 8 acre property in a county outside San Antonio Texas. We are converting the farmhouse there to a restaurant. Would there be any tax reasons/advantages to let my HK company own the restaurant? We personally own the house. We were thinking of "leasing" the house to the restaurant company, however we form the entity.
I was thinking due to the litigious environment in the USA perhaps being owned by the HK company would limit the ability for frivolous lawsuits. Perhaps this alone may be a good reason. Although I think a local , or at least USA citizen, needs to hold the alcohol licenses. Perhaps my state will allow me both to own the restaurant from HK, and since I am a US citizen, to also hold the wine and beer licenses.