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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118753
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I plan to start a new web service which Ill be offering online.

Resolved Question:

I plan to start a new web service which I'll be offering online. What country I should use for incorporation in order to minimize taxes? I'm a US citizen and I'm also citizen of Russia.
Submitted: 6 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 6 years ago.
Incorporating in Russia could save you some legal liability in case of any litigation against the site, but other than that, profits of web services are pretty tough to really prove and as such your tax liabilities would likely be pretty low in either country and the ease of operation in the US, especially in Nevada or Wyoming for your corporation or LLC, would probably be best for you.


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Customer: replied 6 years ago.
Please explain why "tax liabilities would likely be pretty low"? I currently own an S-corporation in Florida and I pay standard personal income tax rate and paycheck taxes, which is total around 30% of the company's profit. For my new web project I'd like to establish another company to save on taxes. I personally don't think that US or Russia are among best choices for this.
Expert:  Law Educator, Esq. replied 6 years ago.
I said that tax liabilities would be low because it is virtually impossible to track income from web services, so your reported income is going to be tough, if not impossible, to verify. I do not know anything about Russian law (nor does anyone on this site, as we have no Russian law experts). However, if you want the ultimate tax protection, then setting up an LLC in a place like Belize, Panama or Nevis or the Cayman Islands would provide you the best protection for this venture.
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