Jurisdiction for micro-online business? UK/US/HK?

[Basilia]

Hello, What jurisdiction would you recommend for company registration?
Micro-online-business (not for investment).
Wishing to provide web-services, sell own courses, affiliate marketing, upwork .etc to the whole world (hooked up stripe/2checkout), maybe mobile apps at apple/google stores.
Buy traffic at facebook, google etc.

With the following inputs:
- Russian citizen. Resident of Russia.
- With administration for dumbasses.
- Low annual costs. Low taxes.
- Аnd the chances of opening an bank account (or wise etc.)


Short-list:
UK LLP/LTD, Wyoming LLC/CCorp, Honkong. ”🙄
p.s. Although I read that llc/llp with non-residents have a problem opening an bank account.
Thank you!

Last edited: Mar 30, 2022

 

[KDX]

Basilia said:
Hello, What jurisdiction would you recommend for company registration?
Micro-online-business (not for investment).
Wishing to provide web-services, sell own courses, affiliate marketing, upwork .etc to the whole world (hooked up stripe/2checkout), maybe mobile apps at apple/google stores.
Buy traffic at facebook, google etc.

With the following inputs:
- Russian citizen. Resident of Russia.
- With administration for dumbasses.
- Low annual costs. Low taxes.
- Аnd the chances of opening an bank account (or wise etc.)


Short-list:
UK LLP/LTD, Wyoming LLC/CCorp, Honkong. ”🙄
p.s. Although I read that llc/llp with non-residents have a problem opening an bank account.
Thank you!
Click to expand...

Your citizenship will make it hard to open a bank account right now.

I'll tag a few people who can maybe help you.

@CaptK @startfleetio

Reminder: you will have to pay Russian tax as your company will be managed from there.

As you said Wyoming LLC or UK Ltd with a Russian-friendly EMI could work quite well. No point in using a C Corp btw.

What do you define as "Low annual costs" btw? for some this may mean below 1000$ a year, some below 10k a year.

 

[Basilia]

KDX said:
Your citizenship will make it hard to open a bank account right now.
I'll tag a few people who can maybe help you.
Click to expand...

Thank you!

you will have to pay Russian tax as your company will be managed from there.
Click to expand...

Yes, russian taxes, in Russia, personal or sole proprietorship.

As you said Wyoming LLC or UK Ltd with a Russian-friendly EMI could work quite well. No point in using a C Corp btw.
Click to expand...

Aha, ok. I hear opinion about C-corp:
"LLC is not better. There will be additional reporting and residency issues. On a small scale LLC will be more expensive than opening a C-Corp - there will have to pay tax on profits, which probably will be almost none. If it is not enough, then in the U.S. you can set off as a loss almost any expenses. And if there is a lot of it, you can take it out somewhere, for example under contract with your own Russian sole proprietorship".

And I heard that the LLC/LLP is more difficult to open an bank/emi account.

KDX said:
What do you define as "Low annual costs" btw? for some this may mean below 1000$ a year, some below 10k a year.
Click to expand...

Click to expand...

Below 1000$. I don't see the point in overpaying. Another option is the UAE, but it is very expensive, $4-5k.
And now there is no turnover at all, zero.

 

[RealDude]

Basilia said:
maybe mobile apps at apple/google stores.
Buy traffic at facebook, google etc.
Click to expand...

Is this still possible as russian individual/company?

 

[KDX]

Basilia said:
Below 1000$. I don't see the point in overpaying. Another option is the UAE, but it is very expensive, $4-5k.
And now there is no turnover at all, zero.
Click to expand...

UAE will be more expensive for sure. However, it will be much more robust if you relocate there.

@startfleetio specializes in setting up US LLCs for non-residents, they use neobanks like Mercury but I'm not sure if you can open an account because of the war. If not, the UK ltd is a more popular option but you may need accounting of some sort (double check this), but many EMIs work very well with it. Then again however, your passport will complicate things.

I recommend you reach out to a few EMIs beforehand and ask them if they would be willing to onboard a Russian citizen.

Basilia said:
And I heard that the LLC/LLP is more difficult to open an bank/emi account.
Click to expand...

Not sure about the LLC, but from what I've heard, this is true for UK LLPs.

 

[Basilia]

RealDude said:
Is this still possible as russian individual/company?
Click to expand...

Some yes, some no. Either way, the screws are being tightened. It was possible to work through the same Paddle for example to receive cards, but they announced a shutdown, and so on. It's very difficult, it's not even just about the Russian company, it's about residency and citizenship in general.

KDX said:
If not, the UK ltd is a more popular option but you may need accounting of some sort (double check this), but many EMIs work very well with it.
Click to expand...

UK/US have essentially the same conditions (taxes, reports)?

KDX said:
Not sure about the LLC, but from what I've heard, this is true for UK LLPs.
Click to expand...

Click to expand...

So if we're talking about the UK, is LTD better?
LTD is probably more complicated with taxes, not sure if local taxes arise there.
I found "LTD will be liable to tax (either in the UK or your country of residency, depending on whether there is a tax treaty in place)"

Last edited: Mar 30, 2022

 

[cuno]

KDX said:
UAE will be more expensive for sure. However, it will be much more robust if you relocate there.
Click to expand...

Maybe more expensive but it's worth it.

 

[startfleetio]

Basilia said:
Hello, What jurisdiction would you recommend for company registration?
Micro-online-business (not for investment).
Wishing to provide web-services, sell own courses, affiliate marketing, upwork .etc to the whole world (hooked up stripe/2checkout), maybe mobile apps at apple/google stores.
Buy traffic at facebook, google etc.

With the following inputs:
- Russian citizen. Resident of Russia.
- With administration for dumbasses.
- Low annual costs. Low taxes.
- Аnd the chances of opening an bank account (or wise etc.)


Short-list:
UK LLP/LTD, Wyoming LLC/CCorp, Honkong. ”🙄
p.s. Although I read that llc/llp with non-residents have a problem opening an bank account.
Thank you!
Click to expand...

Hong Kong is definitely not a low maintenance jurisdiction compared to US LLC and UK LLP (not LTD).

Russians are still possible at some US banks.

 

[tacokai]

startfleetio said:
Russians are still possible at some US banks.
Click to expand...

If that is true I'm sure Biden will come after them.

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[Basilia]

tacokai said:
If that is true I'm sure Biden will come after them.
Click to expand...

- Standing in line at the bank, a Jew, a Black, and a Gypsy.
- A Russian walks up, asks who is last in line.
- Everyone looks at him and says: "Russians are not served".

startfleetio said:
https://startfleet.io/guide/us-llc-for-non-residents-guide
Click to expand...

That's weird. There are two opinions, some say it's all nonsense and you have to pay taxes in the U.S., regardless of residency and type of business, and others take your point of view.

Opinions are split 50-50. They say that your position is based on an aggressive interpretation of tax law.

It is not clear which one to believe.

No one wants problems with the IRS, which is why many are afraid to register in the U.S.

Last edited: Apr 3, 2022