This doesn't work. You still have to report your holdings in the company to the IRS as a CFC, regardless of whether the company generates a profit / pays you i

This doesn't work. You still have to report your holdings in the company to the IRS as a CFC, regardless of whether the company generates a profit / pays you income / etc. This, of course, puts a red flag on you, which leads to a higher chance of being audited, which thus would cause the IRS to go over each and every transaction from which you benefited (meaning, if the company bought a car and you used it for personal use; if the company bought a plane ticket which was for a trip for which a portion of time was spent on non-work-related leisure, etc) to see where it can be counted as income for which you are liable. You can, of course, keep a foreign company, file the CFC with the IRS, and keep an accountant on hand to keep the balances separate; there are plenty of people who do this. If done properly, however, it is somewhat of a pain in the ass, and only enjoyable if you're an obsessive-compulsive tax-avoider like John Malone. Remember, life is short, time is money, and money is meaningless once you have enough of it.