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Originally Posted by crockett
I'm all ears.
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The checking and tracking of affiliates is no biggie crocket - easy shit - got some friends in US law agencies that deal with far more complex net stuff than that - and they are pretty successful at it.
Won't say here, but in theory if you started a corp, say in Costa Rica, you would have a US tax lawyer here handle the affairs with the IRS and declare whatever needs declaring and pay taxes on this. (Doing otherwise just causes sheer shit and hassle)
Your corp will have a bank account - not necessarily in Costa Rica, but not in the US. From that corp account all hosting is paid and all revenue paid into it. This corp is not "you", but a legal entity which you own 100% shareholding.
All hosting is outside US territory.
If you are actually living in eg Costa Rica, the IRS will allow approx $80K/year "allowances" for non-US residency.
Bottom line - sure, make sure all relevant tax stuff is maintained and it's far less likely your corp will be in the front line for US inspection on "porn laws".
PS There are other scenarios, tho these are more complex and not something that needs to be declared/discussed on a chatboard, but the effect is the same.