Originally Posted by The Hosting Team

If I recall correctly, the US allows individuals an exemption of something like $75k in foreign income that you don't have to pay US taxes on. I don't know if the number has gone up since I lived abroad, and I also don't know whether it applies to a business. I guess if you are a sole proprietor, it does, but don't take my word for it. Check with the IRS or an accountant.