While you may not have billions in your bank account, many admire those who have achieved billionaire status. From celebrities to CEOs, billionaires all seem to be able to manage their money in an enviable way. See More: I Asked ChatGPT To Explain How Rich People Avoid Taxes Like I’m 12 — Here’s What It Said Trending Now: Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy We asked ChatGPT how to handle money like a billionaire. Let’s explore what it said (an ...

Government Policy & Regulation - French government plans to toughen measures against tax fraud and over-optimization by wealthy individuals [1] - Increased scrutiny will be applied to the holding companies and fortunes of wealthy individuals [1]

Group 1: Advantages of C-Corp for Chinese Investors - Fixed tax rate advantage: C-Corp has a unified federal tax rate of 21%, leading to a combined tax rate of approximately 26%-30% when state taxes are included, significantly lower than the LLC's pass-through tax rate for non-U.S. residents, which can reach up to 50.3% [1][2] - Profit retention strategy: C-Corp allows profits to be retained for reinvestment, deferring personal dividend taxes, which can enhance company valuation [1] - Dividend withholding tax reduction: Under the U.S.-China tax treaty, the withholding tax rate on dividends from C-Corp to Chinese parent companies is reduced from 30% to 5%, resulting in significant tax savings [2] Group 2: Investment Preferences and Market Access - Ability to issue preferred shares: C-Corp can issue preferred shares, meeting the investment requirements of venture capital firms, which is not possible with LLC structures [3] - IPO pathway: Major stock exchanges like NASDAQ and NYSE only accept C-Corp for listings, providing a clear route for companies like SHEIN to access capital markets and achieve high valuations [3] Group 3: Strategies to Avoid Double Taxation - Choosing pass-through taxation model: LLCs default to pass-through taxation, but if opting for C-Corp taxation, this must be explicitly selected during registration [5][8] - Utilizing tax rate differences: C-Corp allows for broader deduction items, which can help in reducing overall tax burdens through strategic income allocation [6] - Compliance and identity management: Non-U.S. tax residents must submit W-8BEN forms to avoid 30% withholding tax and ensure all income is reported [7] Group 4: Additional Tax Optimization Suggestions - Consider state tax systems: Some states offer additional tax benefits for LLCs, which can be leveraged to further reduce tax liabilities [9]