What's the best place to incorporate an online business?

#63

Hi @Denis_Dovgal.

Here’s an article with more details on how this works: http://ustax.bz/non-us-entrepreneurs/

A dependent agent is basically a person who works mainly for you (whether as an employee or independent contractor).

Your second sentence is a common misconception–it’s simply not true. The article above goes into detail to explain how this all really works.

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#64

@StewartPatton thanks for the link. Now that make sense.

#65

Just a tip guys: to avoid dividend withholding taxes where you want to pay yourself a share of a profit, don’t pay them as dividends. Give yourself royalties and interests, instead, they are tax-free or at the lowest bracket almost in every jurisdiction. Basically you should lend money to your company as a loan and the company would refund the loan paying interests (the profit you want to pay yourself). And/or instead of selling your product, license it, so the royalites would be not taxed as dividends but almost tax-free. Talk with your accountant for details explaining this scheme. Tons of companies legally reduce their tax burden (Apple, Amazon, but also smaller businesses) this way. You don’t have to sell software, a design, or a plugin (this only is doable with IP products, digital or media) but you licens it to your company and your company license it to customers. When you buy tunes on Itunes they are not yours, in fact: legally you’re renting them. Your son won’t be able to inherit them, as they are owned (still) by Apple.

#66

You are still required by law to pay the VAT if you issue invoices from the UK company