You should talk to a tax lawyer or CPA instead of asking here - this can get very complex fast.
Not legal advice, just what I've observed: in general, once you establish tax residency in a certain place (i.e. usually where you live) you will pay taxes there -- so it really matters more about where you choose to live vs. where you establish the business.
In many ways, having a business established outside of your tax residency makes your life more difficult because now you might have to file taxes in 2 different places.
Here's what I'm doing:
- I have a LLC in my current place of residence (New York, USA)
- My revenue is $55/year right now so taxes are the least of my worries (I will pay $0 in tax given the small revenue and the fact that I have some tax credits to apply)
- Even though I plan on moving out of the country to lower my personal living expenses, I'm still going to keep the LLC open in NY state. I'll just look at my earnings every year and make a call on when it makes sense to move the business somewhere else. The country I'm planning on moving to doesn't tax online businesses HQ'd in the US so it's really quite easy to work this way.
I would really suggest optimizing for simplicity of operations when you're getting started, not "how can I save the most in taxes"
You should talk to a tax lawyer or CPA instead of asking here - this can get very complex fast.
Not legal advice, just what I've observed: in general, once you establish tax residency in a certain place (i.e. usually where you live) you will pay taxes there -- so it really matters more about where you choose to live vs. where you establish the business.
In many ways, having a business established outside of your tax residency makes your life more difficult because now you might have to file taxes in 2 different places.
Here's what I'm doing:
- I have a LLC in my current place of residence (New York, USA)
- My revenue is $55/year right now so taxes are the least of my worries (I will pay $0 in tax given the small revenue and the fact that I have some tax credits to apply)
- Even though I plan on moving out of the country to lower my personal living expenses, I'm still going to keep the LLC open in NY state. I'll just look at my earnings every year and make a call on when it makes sense to move the business somewhere else. The country I'm planning on moving to doesn't tax online businesses HQ'd in the US so it's really quite easy to work this way.
I would really suggest optimizing for simplicity of operations when you're getting started, not "how can I save the most in taxes"
Thanks for your reply!