November 5, 2008 4:51 AM EST
I am a CPA and had a tax practice for 14 years so the only questions I will really address is the tax question.
Are you planning to move out of the US? Keep in mind that as long as you are a US citizen, you will be subject to US tax regardless of where the income is earned and regardless of where you live. There are some special rules for ex-pats but I won`t go into that here.
As for the corp tax rate, most small corps qualify for the "S-election". What this does is effectively treat a corporation as a partnership. The corp does not pay tax but the income is reported on the individual`s return. The advantage of this is the individual is not taxed when they take the income out of the corp but ad the income is earned.
The things you should consider is what types of taxes the foreign country imposes. Do they have a VAT (value added tax)? What about property taxes? How are they going to tax you as a foreigner?
The other thing to keep in mind is if you have any activity in the US you will be subject to US tax. That can be as simple as inventory/employee/office/bank account in the US.
I have had clients with foreign corps that when they liquidated the company found it VERY difficult to get the money out of the country. Some countries do not allow money to move out of the country as easily as the US does.
Hope this helps and best of luck.