My partner is a US citizen running an S-Corp in NY and I am a Ukrainian citizen working as independent entrepreneur in Kiev, Ukraine.
Although my partner is a US citizen he permanently resides in Ukraine for more than a year already. We would like to create a mutual legal entity in a state where state (federal) tax is not applied or smoothly switch from an S-Corp legal entity to a Partnership Legal Entity with (if possible) possibility of attaching the same bank account used by S-Corp and using this bank account by the two of us as equal partners (50/50%).
What is the best Legal Entity for us to create to avoid the above mentioned taxes. Like I said we both reside in Ukraine right now and provide Consulting Services online but processing all the payments through American channels.