Thanks for your reply. I'm looking for a fairly detailed / researched answer for this question, so I'll try to answer the information you have replied with.
My application is approved by Facebook, and operates within their policies and guidelines. The application is not gambling, it is a game where people buy virtual goods and virtual currency within the game (most applications run this way, eg. FarmVille, Mafia Wars and so on). So for simplicities sake, think of it as a website that users pay to use if they want.
I would like to know if I should create a company in the U.S., if so what state would be best? Or should I have a business/company in AUS. I'm also unsure if there are other options that I should be thinking about.
Thanks Dimitry. Do you have any advice in terms of tax implications? It would seem to me that if I have LLC I would pay tax through that company, then when I transfer money to Australia, I would also pay income tax here?
If that is the case, would there be any benefit to incorporating in US, and not just having a company here in AUS?
Thanks again for the quick response. If I could just ask a clarification of your last paragraph (and I know that you can't give specifics, but perhaps an example?)
Say for instance the application made $100,000 in the year with net profit of $80,000. I then pay my programming partner $25,000 as his share of profit. I am unsure about your comment about part of the tax paid to Nevada and remainder to AUS. How do I work out that? Would the intermediary control this? (I also assume that an intermediary is placed on a retainer and paid for work done?)
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).