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You moved to paradise to escape the grind. Not to get buried in paperwork.
But here’s the twist: If you don’t think carefully about how you structure your business, the grind finds you. It just shows up in different clothes—compliance checks, tax headaches, and confusing bank paperwork.
So here’s the question that every savvy expat, digital nomad, and offshore thinker eventually faces:
Should you set up a Bahamas IBC or a US LLC?
You’re living in one of the most tax-advantaged jurisdictions on the planet. The sun is bright, the income tax is non-existent, and your neighbors are more likely to be sipping Sky Juice than stressing about 1099s. But that doesn’t mean your corporate structure is on autopilot. In fact, how you set up your business could be the difference between complete freedom or financial friction.
In this guide, we’ll break it down.
- If you own real estate in the Bahamas, the IBC is your best friend.
- If you’re working online, invoicing clients around the world, and living off a laptop, a US LLC might just be your secret weapon.
And if you want to really do it right? You might use both.
Let’s dive in.
The Lay of the Land
Before you decide whether a Bahamas IBC or a US LLC is right for you, you need to do one thing first: understand the playing field.
Where are you now? What are your goals? And which structure actually fits your lifestyle as an expat living in the Bahamas?
I wrote this guide because I speak with expats every day—people who’ve left behind the stress, taxes, and bureaucracy of their home countries in search of something better. But here’s the truth: freedom doesn’t happen by accident. It needs structure.
If you’re already living in the Bahamas—or planning to move here—you’re halfway there.
But the next questions are critical:
➡️ How do you own and protect your property?
➡️ How do you structure your online business?
➡️ How do you safeguard your assets and your privacy?
This article gives you the map.
Whether an IBC or LLC is the right move depends entirely on how you live and what you’re building.
⚠️ Note: This article is not legal or tax advice. It’s meant to give you clarity. For a personal roadmap, you can book a private strategy call with me here.
Let’s get one thing straight—living in the Bahamas isn’t just about sunshine and shellfish. It’s a strategic move.
When you become a legal resident of the Bahamas, you step into a tax system that’s the financial equivalent of a hammock: simple, relaxed, and easy on the wallet. No income tax. No capital gains tax. No inheritance tax. The government funds itself through import duties and tourism, not your paycheck.
But that doesn’t mean the rest of the world stops caring where your money comes from.
Here’s where it gets tricky:
Your residency affects your tax reality—but it doesn’t automatically optimize your business. That takes planning.
Most countries tax you based on where you live. The U.S. is the big exception—they tax based on citizenship. But for everyone else? Residency is the key that unlocks the structure.
So if you’re a resident of the Bahamas, and your income is coming from outside the country (online clients, remote work, investments), the government here leaves you alone. No local tax. No need to report global income.
But try to run that income through a Bahamas-based company and suddenly you’re dealing with international scrutiny, compliance noise, and potential issues with foreign clients and banks. That’s why the structure you choose matters.
IBC or LLC?
It’s not just a legal form. It’s a lifestyle filter.
The Bahamas IBC – A Homegrown Heavyweight
Let’s talk IBCs. Not the sexiest acronym, but in the Bahamas? It’s practically royalty.
IBC stands for International Business Company. Sounds fancy, but the concept is simple: a private, offshore company with built-in perks for foreign investors and residents alike.
Why an IBC is Perfect for Property
You want to buy land. Maybe build a villa. Maybe just have a little slice of paradise to pass on to your kids.
Using an IBC to hold that real estate gives you a clean, professional layer of ownership. It separates your personal name from the title deed, adds a layer of asset protection, and—if you ever want to sell—it makes the transaction cleaner. Just transfer the shares of the company, and boom: no stamp duty on the property itself.
It’s the local way. Banks like it. Lawyers like it. And if you ever want to structure your estate for tax-free inheritance, your heirs will love you for it.
Privacy, Protection, and Peace of Mind
Bahamas IBCs come with a cloak of discretion. There’s no public register of shareholders or directors. It’s private, clean, and—if managed properly—well-respected in legal circles.
You also get strong asset protection laws. That matters. Because life isn’t always sunshine and boat drinks. If things go sideways—lawsuits, creditors, divorce—your IBC puts a layer of glass between your business life and personal assets.
But Here’s the Catch
An IBC is great for local assets. It’s built to hold things like real estate, investments, and legacy plans. But run an online business through it and you’re asking for trouble.
Why? Because banks, payment processors, and clients outside the Bahamas don’t always play nice with offshore companies. You’ll face more compliance checks. Stripe might say no. PayPal might freeze funds. Your clients might ask awkward questions.
That’s why the IBC is not the go-to for digital nomads. Not because it’s bad. Because it’s not built for that game.
The US LLC – The Digital Nomad’s Secret Weapon
Here’s the part that makes people blink.
A US company… for someone living in the Bahamas?
Yup. If you’re working online, billing international clients, and running your life off a laptop, a US LLC might be the smartest move you’ll ever make.
Global Trust, Local Simplicity
The US is the economic engine of the planet. Clients trust it. Banks understand it. Platforms like Stripe and PayPal require it. You want to look legit? You go where the money lives.
A US LLC lets you do business in USD, open bank accounts in the States, and access the best financial infrastructure in the world—without ever stepping foot in Newark.
And here’s where it gets spicy:
If you’re a non-US resident and not doing business inside the US, you can run a US LLC with zero US taxes.
Let that sink in.
How It Works
The magic word is pass-through taxation. The IRS doesn’t see the LLC as a separate taxpayer. It just passes profits on to the owner.
But you’re not a US resident. You’re a Bahamas resident. The Bahamas doesn’t tax foreign income. So if you structure things right?
Zero tax. All legal.
That’s why digital nomads love the US LLC. It gives them everything they need—credibility, financial access, and clean separation—without inviting tax agencies into their inbox.
No State Tax, No Fuss
Pick the right state, and you’re golden. Wyoming, Delaware, and Florida are the top picks. No state tax. Low annual fees. Easy online setup.
Don’t overthink it. The best state is the one that doesn’t get in your way.
Avoiding the IBC Headaches
Running your online business through a Bahamas IBC sounds good on paper—until your payment processor rejects it, your clients get suspicious, and your compliance paperwork starts looking like a college thesis.
A US LLC skips that mess.
The Strategy – Use Both, Live Free
Why choose between a fork and a spoon when you can use both? Same goes for your business setup.
You’re living in the Bahamas. You’ve got options. So use them.
Own Property Through the IBC
You buy a house. You put it in an IBC. Now that home’s not just a place to live—it’s a legal asset protected by a corporate shell.
That means:
- Your name isn’t on the title—your company’s is.
- If something happens to you, your heirs get the shares, not a messy probate process.
- And if you ever decide to sell? Transfer ownership of the IBC. Clean. No stamp duty. No fuss.
It’s how the smart money moves.
Run Your Business Through the LLC
You earn online? Use a US LLC.
It keeps things lean. Stripe and PayPal don’t ask awkward questions. You get a US bank account. Your clients see an American company and relax.
And since the profits “pass through” to you—and you’re a Bahamas resident—there’s no tax at the US level and none at home.
You’ve legally disappeared from the global tax radar.
One Handles Assets. One Handles Income.
You’ve just separated your life into two clean lanes.
- The IBC is your vault.
- The LLC is your engine.
No overlap. No mess. Just structure.
It’s like running your personal life through a trust fund and your business life through a startup. Two tools. One strategy. Maximum freedom.
Conclusion: Structure for Freedom
You didn’t move to the Bahamas to shuffle paperwork or dodge tax bullets. You came for the breeze, the ease, and maybe a little rum with your sunset.
But freedom isn’t just about geography. It’s about structure.
- Own property? Use a Bahamas IBC. It’s clean, private, and built for legacy.
- Run a digital business? Use a US LLC. It’s global, trusted, and tax-smart.
- Want both? You can. And you should.
This isn’t about loopholes. It’s about playing the game with the right tools.
So go ahead—build your life in paradise. Just make sure your business lives there too.
Explore More on CPH Investment Group
For further insights on structuring your business and investments in the Bahamas, consider exploring the following resources:
- Bahamas IBC Formation Services
- US LLC Formation for Non-Residents
- Real Estate Investment Opportunities in the Bahamas
These articles provide detailed guidance on leveraging the benefits of both Bahamas IBCs and US LLCs to optimize your business operations as a Bahamas resident:
Bahamas IBC & Corporate Law Resources
- BBCIncorp – The General Guide to Starting an IBC in the Bahamas
This comprehensive guide outlines the procedural steps for incorporating an IBC in the Bahamas, highlighting its tax-friendly nature and legal advantages.
🔗 https://bbcincorp.com/offshore/articles/starting-an-ibc-in-the-bahamas - Central Bank of The Bahamas – International Business Companies Act (PDF)
An official document detailing the legislation governing the incorporation, registration, and operation of International Business Companies in the Bahamas.
🔗 https://cdn.centralbankbahamas.com/documents/2019-06-19-10-03-04-The-International-Business-Companies-Act-2000.pdf - Higgs & Johnson – Formation of International Business Companies (PDF)
This resource provides insights into the requirements and procedures for forming an IBC in the Bahamas, including the necessity of a registered office and agent.
🔗 https://higgsjohnson.com/wp-content/uploads/2018/01/IBCformation.pdf
U.S. LLC Formation Resources
- Internal Revenue Service (IRS) – Limited Liability Company (LLC)
The IRS provides an overview of LLCs, including their structure, member requirements, and tax implications.
🔗 https://www.irs.gov/businesses/small-businesses-self-employed/limited-liability-company-llc - Wolters Kluwer – How to Form an LLC: Advantages, Disadvantages, and More
This guide offers a step-by-step approach to forming an LLC, discussing the benefits, potential drawbacks, and key considerations for business owners.
🔗 https://www.wolterskluwer.com/en/expert-insights/how-to-form-an-llc-what-is-an-llc-advantages-disadvantages-and-more
