Easy question. How long is a piece of rope?
It doesn't really matter where your sites are hosted, it's important where you live (legally, permanently, semi-permanently). However, if a foreign corporation owns websites which are hosted abroad, foreign law applies.
Examples: Lets say you are shareholder of a corporation in Germany or England, which is perfectly legal, and this corporation has websites, foreign law applies, but you have to take care of two situations. It costs you 29 k bucks to set up a German coropration. Add money for a biz address and mail service. Also, German law applies, which isn't always favourable. If you severly violate loal law, the feds there have your server shut down. A UK ltd. can be set up for way less than 1k, but there you have the problem that the UK does not really allow import of pornography, and it's a real bitch to get a UK bank account.
In the Netherlands you won't have any legal problems but setting up a dutch corp is not cheap either.
THE OFFSHORE CORPORATIONS FALL UNDER FOREIGN TAX LAW, which can be very unfavourable. Your proceedings that you personally receive, have been taxed in the US as well.
Then there are offshore solutions in tax havens. If you consider this, talk to a qualified attorney because the tax man at home might get really mad if he think you are a tax evader.
All this only touches the real complexity of the situation. Message is, get an attorney before you do a step like this.
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Jenny Seemore
Pornography is the bloody gladiator who stands guard over the First Amendment
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