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jennycards

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#1

Incorporating in th U.S. / Tax Questions

10-05-2002, 02:52 PM

I am a European webmaster with a smaller but fast growing paysite.

With the new f*cking VISA rules I understand that if I don't want to loose the major part of my rebills and want to be on the "safe side" I have to incorporate in the U.S.

In fact I know from my own experience that this is a very simple process done within 24 hours time and would cost me less than $1k ... so no real problem here. For this I get a tax ID, a checking account and a US postal address. (If you don't know yet how to do it just open up Google and enter 'incorporating nevada delaware' ;-)

The big question is: <B>How will this affect my taxes ?</B>

According to European laws a business will be taxed in the country where the operation is being run from. Mine would still be run from Europe though incorporated in the US.
Will I still have to pay US federal income tax? If yes is there a treaty between the US and my country so I won't pay these taxes again here?

Is there a signigicant difference between an Inc. and a LLC? (taxwise)

And how much will I have to pay for a US accountant and tax consulting ... I know a lot about our tax system but nothing about theirs?

Some input from more experienced Non-US webmasters?

- Otto -

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UnseenWorld

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#2

10-05-2002, 03:39 PM

If you take mail order marketing as a model, a California business conducting a mail order sale may have to collect sales tax when the article is shipped within California.

However, we in the Internet may be shooting ourselves in the foot when, trying to avoid liability for some guy checking out our site in some ultraconservative berg when we argue that the Internet isn't a local thing, that a business on the Internet is everywhere at once in a jurisdictioin known as "cyberspace." One inference from this is that the borders of the tax jurisdiction goes whereever the local business goes in the Internet. One conclusion from that view might be that the transaction is not a localized thing, and happens both at the merchant's and customer's end and can thus be taxed by both jurisdictions.

How this works internationally is anybody's guess.

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LAJeff

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#3

10-05-2002, 04:13 PM

www.paynoincometax.com
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High Quality

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#4

10-05-2002, 04:23 PM

Originally posted by LAJeff
www.paynoincometax.com

That rocks man. Had no idea anyone on this board even had a clue about freedom.

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Mr.Fiction

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#5

10-05-2002, 04:30 PM

Originally posted by LAJeff
www.paynoincometax.com

The guy who runs that site is a convicted felon according to a quick Google search.

http://www.schiffiswrong.info/

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grampatex

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#6

10-05-2002, 04:39 PM

Check with your IPSP. My understanding is that several of the larger players will have banking relationships in most of the Visa regions.

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Webby

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#7

10-05-2002, 04:52 PM

"The guy who runs that site is a convicted felon according to a quick Google search. "

Course he's a convicted felon!

Ain't anyone in the US that has uttered anything about not paying taxes???

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jennycards

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#8

10-05-2002, 05:02 PM

Originally posted by LAJeff
www.paynoincometax.com

I bet he IS paying taxes for the b/s books he sold.

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LAJeff

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#9

10-05-2002, 05:05 PM

Ya Freedom rocks.

www.paynoincometax.com

Read the entire site. This guy will give you $50,000 if you can site the law that makes you liable to pay income taxes..
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trailboss

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#10

10-05-2002, 05:26 PM

There is a major difference between an LLC and a Corporation.

An LLC is a passthrough as far as taxes are concerned and there are benefits to this if you are starting a business and don't expect to see much profit.

A corporation with profits of $50,000 or less is taxed at 15% in the US.

Also in Nevada shareholders are not public record. Shareholders do control the corporation and if YOU are the only shareholder.
See my point ?

Of course with a corporation almost everything is deductable to the corporation. I have 5 pages, roughly 150 business items that a corporation can deduct and basicly anything you could think about that is business related is listed on there, even beer and pizza if you hold a company fuction and all the employees are invited.

A corporate Strategist can help you set up a US corporation so that it has little or no profits and thus pays little or no US taxes.

That's the game and it's legal.

I'm trying to get hold of one of my Full Service Nevada Resident Agent buds to get some more current information and he's not available.

I bet if I stop Apache on his webserver for a bit, my phone will be ringing!

Nah, I won't do that. He always pays his bills.

trailboss

Last edited by trailboss; 10-05-2002, 05:42 PM.
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trailboss

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#11

10-05-2002, 05:44 PM

There is a major difference between an LLC and a Corporation.

An LLC is a passthrough as far as taxes are concerned and there are benefits to this if you are starting a business and don't expect to see much profit.

A corporation with profits of $50,000 or less is taxed at 15% in the US.

Also in Nevada shareholders are not public record. Shareholders do control the corporation and if YOU are the only shareholder.
See my point ?

Of course with a corporation almost everything is deductable to the corporation. I have 5 pages, roughly 150 business items that a corporation can deduct and basicly anything you could think about that is business related is listed on there, even beer and pizza if you hold a company function and all the employees are invited.

A corporate Strategist can help you set up a US corporation so that it has little or no profits and thus pays little or no US taxes.

That's the game and it's legal.

I'm trying to get hold of one of my Full Service Nevada Resident Agent buds to get some more current information and he's not available.

I bet if I stop Apache on his webserver for a bit, my phone will be ringing!

Nah, I won't do that. He's always pays his bills.

trailboss

Last edited by trailboss; 10-05-2002, 06:00 PM.
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LAJeff

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#12

10-05-2002, 06:31 PM

Originally posted by trailboss

A corporation with profits of $50,000 or less is taxed at 15% in the US.

trailboss

If a Company makes a $1,000,000 of income and only has $50,000 in profit, it pays taxes on income of $50,000.

But if an individual makes a $1,000,000 they have to pay taxes on that million ?

If someone is employed they are still selling there services, just like a company does.

There is no place in title 26 IRC that seperates income for a company and individual.
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heymatty

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#13

10-05-2002, 06:42 PM

My new US corporation will have to pay a consulting fee to myself.

It will break even.

I really don't want to pay alot of tax in the US for a corporation that breaks even.

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trailboss

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#14

10-05-2002, 07:22 PM

LAJeff,

Think outside of the box instead of looking at the cardboard.

Profits is the keyword here.

The corporation can buy your house your car and any other items you own. You make a rental agreement with the corporation and pay it back.

The Corporation doesn't have to make money on these assets, it just needs to record them to keep tax records.

You can draw a small salary as an employee of the corporation and get many benefits that are paid by the corporation.

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trailboss

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#15

10-05-2002, 07:42 PM

Oh and I forgot, those benefits are TAX FREE to you.

If you are making a cool million a year, you need a pantloand of corporations each one handling a unique part of your business.

Marketing, advertising, web design, web promotion, sales ...
with each corporation making less than $50,000 year in profit.

But then you enter into the area the IRS defines as a control group.

That's where is get's real fuzzy when you own multiple corporations.

Folks, I'm not a lawyer and I'm not a CPA.
I just learned all this shit in the gutter because I had to.

Sweet Dreams,

trailboss
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Webby

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#16

10-05-2002, 08:16 PM

Mmm.. If all these US corporations are to comply with VISA US for non-US residents, I can think of nuthing worse than incorporating in the US and spending time on accounting for and maintaining some US corps.

It way well suit some, especially those who have mistakenly donated their processing to US domestic processors and wish to retain their current rebilling revenues.

However, otherwise, this is a non starter. There are plenty more jurisdictions in this world that the words "tax allowances" are unheard of. As for explaining/accounting to the governments of these jurisdictions, well - there is no "explaining". I think they call it "commerical freedom" and no taxes whatsoever!

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trailboss

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#17

10-05-2002, 08:33 PM

Webby,
That's an offshore corporation you are trying to talk about.

The rumors we are hearing about this new Visa thing say we have to have a US Presence.

Offshore don't fit the round peg in the square hole.

Sweet Dreams,
trailboss
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Webby

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#18

10-05-2002, 08:44 PM

Hi Tailboss

Yes.. your right! An offshore structure is more problematic for US citizens.. but for *almost* all other residents of other countries, tis no problem.

There are no VISA problems with offshore jurisdictions concening processing, - or with any other countries with the exception of North America. And there are a good few processors in the world that are not US based and stuck under the VISA US rules.

Probably one of the highest "high risk" businesses is gambling.. not adult, and I know of a good few processors that handle many millions a month with no problem to their clients.

So.. basically, least at the moment, for any non-US corp/indvidual, this is no biggie - just sign up with any (exclude a few *g*) processor that is not based in the US - they are waiting for ya!

XXX TLD's - Another mosquito to swat.
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trailboss

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#19

10-05-2002, 08:58 PM

Webby it's Trailboss not tailboss. I do horse shit.

We are very diversified.

trailboss

Last edited by trailboss; 10-05-2002, 09:15 PM.
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Webby

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#20

10-05-2002, 09:01 PM

Well.. fuck me!

That must have been a Freudian slip!

Apologies Tailboss!!

XXX TLD's - Another mosquito to swat.
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trailboss

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#21

10-05-2002, 09:23 PM

We have great customer service.

You should get a Free Cream Cheese Dildo via FedEX tomorrow or the next day.

Sweet Dreams,

Trailboss
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