Should I incorporate my online business in the US or not?
I have an online business with traffic mostly in the States. We are busy redesigning and will soon launch an updated site, more offerings with an ecommerce presence. Most of the site's income will be derived from listings, content and advertising. We are also planning to launch in Australia this year.
My question is, with the new business pivot, am I best to now incorporate in the US, get a US bank account given most of my traffic (and customer base) is there? We have no physical address there and are keen to start selling products through the site, which is causing some teething issues with logistics and set-up.
The thing is if you have no physical location in the US it may make things a little more difficult for example you need to use mail forwarding and thing such as that to get around it.
A very good write up here on setting up in the USA:
http://blog.freshdesk.com/how-to-incorporate-a-us-corporation-from-outs/#.UXSY_6Lin08
Where is the "real asset value" of your business built and or located? A tech company we recently worked with estimated (based upon independent valuation) that 90% of its asset value was in its IP. That IP is owned by an offshore company domiciled in the BVI. Revenues generated in the US using the technology are via a US company under license agreement (at fair market rates) back to the BVI entity. UK and European revenues are treated on a similar basis. Full taxes are paid on profits earned in each juristiction at the local rate. I am not qualified to provide tax advice to you nor should my comments be taken or construed as advice but yours is a question often raised by "virtual businesses" operating across borders. I could suggest tax and legal advisors who are experts in this area if you want to contact me directly.
Neil Steggall, Partner at Wardour Capital Partners
Where is the "real asset value" of your business built and or located? A tech company we recently worked with estimated (based upon independent valuation) that 90% of its asset value was in its IP. That IP is owned by an offshore company domiciled in the BVI. Revenues generated in the US using the technology are via a US company under license agreement (at fair market rates) back to the BVI entity. UK and European revenues are treated on a similar basis. Full taxes are paid on profits earned in each juristiction at the local rate. I am not qualified to provide tax advice to you nor should my comments be taken or construed as advice but yours is a question often raised by "virtual businesses" operating across borders. I could suggest tax and legal advisors who are experts in this area if you want to contact me directly.