Yeah, it is in theory, but even small businesses incorporated abroad with US persons involved in them put huge reporting burdens on the US person. Form 5471 and friends make this stuff look straightforward. Most of the time I find my frustration isn’t about how much money I am paying in taxes, but just how much dull and confusing paperwork I have to understand. Even trained professionals who spend their whole lives doing this get confused by US tax compliance for people who have international lives. The US needs to realise how important the a positive reputation in its expat community would be for its soft power.

I assume you mean a business bank account for the banking?

Challenging, and potentially criminal.

If you have any management authority over the bank accounts owned by the business, then those accounts fall under FACTA.

Hell, if you are even just an employee, but can sign on the bank account, then you have to report it to the US authorities.

So a 'business account' doesn't get you out of the US required reporting.

Also, the implication is that you'd use this for 'day to day' banking. Using a business's funds (a business bank account) to cover personal spending is typically criminal (embezzlement).

So not a solution.

And this doesn't solve the other problems, like pension savings or other financial products.

Unfortunately if you have equity in the business, you'll get taxed. However, if you are only an employee, you get an exemption on something like $150,000 of income, housing, and other expenses. So as a US citizen, you can avoid taxes only by living outside the US, and being an employee of a non-US company. If anyone knows otherwise, please correct me as I'd greatly benefit!