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by mchannon
2815 days ago
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You're selling software, which you can exclusively purvey on a different continent, and you're probably unhappy about relinquishing quite a bit of coin to VAT and/or other taxation. Am I right in thinking this is why you're considering incorporation? While it may very well be true that if you try to incorporate some alter ego of yourself as an LLC or similar in another jurisdiction (e.g. the US) and thus you'd be subject to local taxation, there's probably a much simpler approach, of simply being the majority investor in an established overseas corporation. You buy say a 51% stake, it sells your software (with your marketing and continued development efforts) and it acts as a passthrough, keeping your hard-earned money (probably earned largely outside the EU) away from the watchful gaze of local tax authorities. You derive any income in the form of dividends or draws held in overseas accounts. (The minority owner might also be some form of you, or an agent willing to own 49% and do nothing for a reasonable fee). The US is not exactly paradise for all entities and purposes but buying a Wyoming-based shell corporation can be done for under 1000 EUR. This can provide you with a US situs for the business, which unlocks all kinds of doors for legitimacy, particularly when it comes to accepting payments. Am not a tax expert but it occurs to me that taxes can be legally avoided through this approach, given the size of the "shell company" industry in Wyoming (and a few other states) and the level of foreign interests therein. |
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