What % of your business is defensible at 0%?
7 questions about your real operation. No signup. Instant result.
0% is only defensible with documented corporate substance (Manager).
For tax residents in territorial countries only
This tool estimates what portion of your income could be taxed at 0% as foreign-source income. It only works if your tax residency is in a country with a territorial system.
🚫 If you live in a worldwide-income country (Spain, Mexico, Argentina, Colombia, Italy, Germany...) this tool doesn't apply. Your country taxes your global income. The Manager still helps with substance, but not for 0% taxation. More on substance →
Your basic numbers
A rough estimate is enough. Living expenses reduce your IRP taxable base.
Example: 60,000 USD/year invoiced through your LLC.
In Paraguay, these are deductible from IRP (Paraguay personal income tax) with an invoice to your RUC (Paraguay tax ID). Applied to both scenarios.
What type of business do you run?
Select every revenue source that applies.
SaaS / Software
Subscription platform, app, or online tool
Digital products
Recorded courses, templates, ebooks, licenses, assets
E-commerce / Dropshipping
Online store with suppliers shipping directly
Affiliates / Commissions
Referral income, partnerships, automated commissions
Ads / Content
YouTube, blog, podcasts monetized with ads or sponsors
Consulting / Freelance
Professional services where you're the one delivering
Agency / Team
Services delivered by a team, you run the show
How much does each source generate?
Allocate your revenue across the sources you selected. It doesn't have to be exact.
How much of your business runs without you?
If you disappeared for 3 months and did nothing, what percentage of your income would keep coming in? This measures how much activity can be claimed as "foreign-source" (territorial) vs "your personal work" (IRP).
0% — Everything stops
If I don't work, nothing comes in. All revenue depends on my daily activity. → 100% personal work, IRP
~25% — Drops significantly
Some income continues (renewals, residuals) but most stops.
~50% — Half and half
Half the business runs on its own, the other half needs me. → Mix of territorial and IRP
~75% — Most keeps going
My business is highly automated, only the pace drops a bit. → Defensible as territorial)
~95% — Runs without me
I have systems, a team, or products that generate revenue autonomously. → Strong territorial position)
How do you interact with your clients?
The way you deliver your service/product determines whether the income is personal or business-related.
I deliver personally
1:1 calls, manual deliveries, my name is the brand. The client hires me.
Mix: me + systems
Part is on me, part is automated. Manual onboarding + platform. Consulting + SaaS.
Systems and platforms
Clients interact with my product/platform. They don't know who I am and don't need to.
A team delivers
I have employees or contractors who deliver the service. I lead, I don't execute.
What infrastructure does your LLC have?
Check everything that applies. If none apply, move on.
U.S. bank account
Mercury, Relay, or any American bank in the LLC's name
U.S. hosting / servers
AWS, Vercel, Cloudflare, DigitalOcean, or any US provider
Payment processor in the LLC's name
Stripe, PayPal Business, or any gateway linked to the entity
Contracts in the LLC's name
Suppliers, clients, and SaaS tools contract with the entity, not you
Global brand / .com domain
The brand operates in English or for international markets, not just locally
Professional bookkeeping for the LLC
Separate bookkeeping for the entity, not mixed with personal expenses
Tax filing current with the IRS
Form 5472 + Pro Forma 1120 filed annually
Formal Operating Agreement
Signed OA with a real governance structure, not a generic template
Does any of this sound familiar?
Check what applies. These signals weaken your position in an audit. If none apply, all the better.
Your name is the brand
Clients look for you, not the company. Your face sells.
Most clients are in your country
Most of your clients are in the country where you reside
You collect into a local bank account
LLC revenue is transferred to your local personal account
No minutes or formal governance
No resolutions, meeting minutes, or paper trail of corporate decisions
Personal and LLC expenses are mixed
You use the LLC's card for personal expenses or vice versa
The LLC uses your personal address
You don't have a Registered Agent or separate address for the entity
Without Manager, that % isn't defensible
The result above assumes you have documented corporate substance: formal governance, bookkeeping, contracts in the LLC's name, an immutable trail of decisions, and a tax presence log by country. Without the Manager ecosystem, a tax audit can reclassify 100% as personal income — even if your business is genuinely automated.
Plus, Manager unlocks deferral: the share you don't distribute from your LLC doesn't trigger a taxable event that year. Money kept in the foreign account doesn't exist for the tax authority until you decide to draw it down — and while it's there, it keeps generating capital gains at 0%.
See the Manager ecosystemIndicative estimate. Assumes strict compliance with territorial requirements (tax residency, income source, documented business substance). The real % depends on your operation and the laws of the country where you reside. Not tax advice — consult your advisor. * The LLC/Manager fee is deducted from the taxable base as a business expense.
How this actually works
The Manager doesn't create territoriality. It documents and defends it.
Territorial defensibility spectrum
Indicative base %. Your result varies based on the vacation test, delivery mode, and infrastructure.
Live in Spain, Mexico, Argentina, or Colombia?
Your country taxes all your global income. The LLC, Manager, and substance don't matter — you pay tax on 100% where you reside. Manager protects against sham accusations but won't get you to 0%.
More on substance for worldwide income →You don't pick the % — you defend it
Declaring 80% as territorial when your reality is 20% isn't tax optimization — it's fraud. With CRS information-sharing agreements in place, it's only a matter of time.
Can I leave money in the LLC without declaring it in Paraguay?
Yes, if your LLC is opaque (taxed as a separate entity — the Manager setup). In territorial systems without CFC rules (like Paraguay), money inside the LLC isn't attributed to the owner until it's distributed. You decide the deferral: you can let earnings accumulate year over year. While they stay in the foreign account, they don't trigger a taxable event. And any gains the capital generates (investments, reinvestment) are foreign-source income — also at 0%.