[QUOTE=Dickhead;425594]Except that if you are a US citizen living in Argentina, the first $92,900 (for 2011; this is indexed to inflation) of net business income is exempt from federal taxation. That also means it's exempt from state taxation in most (but not all) states. So forget that reason. Nice try, though.[/QUOTE]Have you ever heard of self employment tax? It is 15. 3% of net profit, and is not subject to the 92,000 deduction.