If the Cayman Islands has no taxes why aren't more buisiness based out of there?

Answer 1

It's one thing to be headquartered in the Caymans, it's an entirely different thing to try to shield income from US taxes. If they earn money in the US, they'll pay US taxes, and if they don't structure the corporate entity properly, the US will tax their world-wide income regardless of where they are incorporated.

Answer 2

It's shady for one thing. Try getting a business loan with your company based there....near impossible.

Don't avoid taxes, embrace them!