Lawyers and accountants are giving conflicting information
- Thread starter CryptoIsFreedom
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Yes, especially in regards to tax matters:
https://www.castroandco.com/blog/2019/january/the-necessity-of-tax-opinions/
https://www.castroandco.com/blog/2019/january/the-necessity-of-tax-opinions/
What you need is an international taxation expert because it involves multiple countries and treaties. US-centric lawyers especially accountants will give wrong advice. I have talked to many US lawyers and accountants as well, they are over zealous on their interpretation on USTB and ECI.
BTW what's your envisioned setup and problem that you think would have? Maybe you can write it here and see if anyone could help with it.
BTW what's your envisioned setup and problem that you think would have? Maybe you can write it here and see if anyone could help with it.
Status:
- Employees are from all around the world, including USA & EU as independant contractors
- Need payment processor, Stripe, Paypal to sell digital goods
- Need 0% tax on corporate︀ side
- Looking for a long term scalable solution, business will run 10+ years
- Business will︁ reinvest profits into new products in later years
- Do not want to deal with sales︂ tax, VAT, etc..
- Not related to crypto
- Singapore resident with offshore bank accounts
- US LLC payments and operations company
- Can pull money from LLC to offshore bank accounts
- Digital products do not need to collect sales tax or VAT (Conflicting advice here)
- Not subject︃ to federal income and state tax (Conflicting advice here)
- Hiring US citizens: Would hire them︄ as independent contractors (Conflicting advice here)
- Risks: Can get sued. Tax, laws, future unclear
Set up a billing company in Singapore and an offshore company somewhere else (principal-agent setup). Contact a tax advisor in Singapore to check what kind of substance you need so that the offshore company isn't resident in Singapore.
0% tax will be hard but keeping it below 5% will be doable. Also I would avoid the US if possible.
0% tax will be hard but keeping it below 5% will be doable. Also I would avoid the US if possible.
Digital Products. Where are you selling to? If Europe, Yes. US, depending︀ on the states. You don't need advice from them here, just use quaderno or taxjar︁ to calculate. Or even beter, use Paddle.
As for Federal taxes, it depends on the︂ exact nature of the digital product, but generally no. There's a proposed regulation on digital︃ content in 2019, which clarify up a lot of things. If you pm me, i︄ will send you the notes. Although it has not yet been finalized, but it generally︅ meant that is the stance taken by IRS and Treasury.
Hiring US independent contractors, incidentally︆ i'm researching into this as well, but my inclination is no, would be better if︇ there's a tax treaty between US and the other country, but since you want to︈ do it in a offshore jurisdiction, so that's out of the question.
Bigger risks here︉ I see here though is Singapore.
As for Federal taxes, it depends on the︂ exact nature of the digital product, but generally no. There's a proposed regulation on digital︃ content in 2019, which clarify up a lot of things. If you pm me, i︄ will send you the notes. Although it has not yet been finalized, but it generally︅ meant that is the stance taken by IRS and Treasury.
Hiring US independent contractors, incidentally︆ i'm researching into this as well, but my inclination is no, would be better if︇ there's a tax treaty between US and the other country, but since you want to︈ do it in a offshore jurisdiction, so that's out of the question.
Bigger risks here︉ I see here though is Singapore.
Both Europe and all states. Basically a cheap but widely used worldwide product.
I'll check them out. Are these usually only used while doing yearly accounting?
Freemium, subscription, buying extra features.
I'll pm︂
What risks do you see?
I'll check them out. Are these usually only used while doing yearly accounting?
Freemium, subscription, buying extra features.
I'll pm︂
What risks do you see?
To get back to thread title.
From my personal experience I can say that if you get the wrong lawyer or CPA you will get conflicting information from them, to give an example. I asked one CPA if it was okay to legally accept bitcoins (back 3 years ago) and he said, we don't know, better don't touch it since it is illegal.
I was surprised, then I consulted another CPA, it was a large firm, they knew about bitcoins and told me the way to accept them for my legal business.
As you can read, would I have lessoned to the first I would︀ have lost business and money!
From my personal experience I can say that if you get the wrong lawyer or CPA you will get conflicting information from them, to give an example. I asked one CPA if it was okay to legally accept bitcoins (back 3 years ago) and he said, we don't know, better don't touch it since it is illegal.
I was surprised, then I consulted another CPA, it was a large firm, they knew about bitcoins and told me the way to accept them for my legal business.
As you can read, would I have lessoned to the first I would︀ have lost business and money!
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