Entity Formation Options for a U.S. Citizen

As a U.S. citizen with residency in Germany, along with a growing online consulting business, I’m trying to do a bit of planning to properly set up an entity. With that in mind, of course comes along with what makes the most sense from a tax perspective.

Unfortunately, I’m not yet an EU passport holder, and for the time being will need to hold on to my EU residency for another year it seems to have that option (potentially).

With that in mind, I’m trying to plan for the future once that is in place, and find the best place to setup. I’m aware of FFIE and the benefits that come along with that, although after reading Nomad Gate, I’m not sure I’ll qualify for that being a consulting business (which I was not previously aware of). If that’s the case, without an entity I suppose all earnings would be taxed then with the German tax rate, on top of the 15% self-employed tax rate of this US – is that correct?

I’ve looking into entity creation in Singapore, which appears from research it might be a good option. To my understanding, the first $73k would be tax free for the first three years if earned from businesses outside of Singapore, and if that would fall under the FFIE, would be tax free from the U.S. until after the $105k mark.

Basically, trying to get some suggestions on what others have done living outside of the US, for example in Europe, or even who have relocated to other places in the world, and make a decision on what’s the best setup to go with.

Appreciate any input!

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