Best setup for an Affiliate Marketing business?

[bibing]

Does anybody here work in Affiliate Marketing?

I do and mostly receive payments (commissions) from EU companies and the US.

What would you suggest as the best setup to get commissions with low tax, low company maintenance costs?

Anybody here working in the affiliate marketing industry?
Show us how you set your "things" up

 

[jscargo]

I was doing affiliate for some years. It really depends on where do you live, whether you are an US citizen and are you willing to move.

Since most affiliate choose a few ways they send payments and you can't change it, the best answer to receiving money is TransferWise as you will have bank details for SEPA but also for ACH.

Tax wise, I think the best option is to move to a low tax jurisdiction, put as much expenses as company costs, and pay an effective tax rate under 10%. If you want low maintenance costs for a company, I would suggest an UK company + being a tax resident somewhere cheap with low taxes. If you can bear a bit higher maintenance costs, set it up where you will live.

If you can give more details on where do you live and what are you willing to do to reduce your tax bill, I can give you some ideas

 

[bibing]

where do you live

I'm based in the EU.

what are you willing to do to reduce your tax bill

I know the best is to move to a low tax country but that is not an option for me, at least not for this year.

So I think I would need something with no reporting to the EU.
I could use nominees but that will make things more expensive.

The first thing which comes to mind is a USA-based LLC (New Mexico or Wyoming, whatever is more private or cheaper).
Definitely will be better than using an offshore company (BVI, Seychelles).
Some EU companies want nothing to do with offshore.

I get paid mostly by EU based + UK + USA companies.

For a bank account, even that should be in the USA, so that it will not be reported to the EU (as far as I know)

Will Transferwise report my USA business bank account to my EU country?

 

[jscargo]

I think a US company of an EU tax resident director receiving money from EU company scream red flags everywhere for the financial institution you will be receiving money at.

If you can't move, set up a company somewhere and don't withdraw it to your personal bank account before moving. Then move, and withdraw it later.

If you live in a high tax Western European country, and you can't move, I have no useful advice for you.

 

[bibing]

I think a US company of an EU tax resident director receiving money from EU company scream red flags everywhere for the financial institution you will be receiving money at.

I receive payments from US companies as well..

If you can't move, set up a company somewhere and don't withdraw it to your personal bank account before moving. Then move, and withdraw it later.

Only crazy people will transfer company money to a personal account (of course that was out of the question)

Hopefully, somebody else can add some more suggestions?

 

[bibing]

Ok, just found out USA report bank accounts to EU. So no use for me

 

[JohnLocke]

welcome back OP!

What is your budget to get a company setup for your business and is the costs the only factor that matters for you?

 

[bibing]

Hi @Admin,
I'm open to any solution as long as it doesn't cost xx,xxx and my a*s doesn't get reported to my country because of AEOI.

I have some limits:
1. I can't use offshores like BVI, Seychelles etc. because the companies I receive money from don't want anything to do with those.
2. Can't use any EU as because those get reported too.
3. Can't use NM llc or Wyoming because I found out US report bank accounts to EU (just found out yesterday, didn't know that)

Maybe I can use nominees?
Open in HK? SG? UAE?
Open in UK with nominees?

 

[user9823671]

IF you want to remain legal and cheap, from what I am aware (which is limited tbh) you don't have any options. If you want to go expensive / risky flying under the radar / illegal then you have some options. But as you said cost was an option, I assume spending a decent chunk to save substantially on tax is out the question. Then you just have the illegal routes, but even then, as you eluded to, you still have the problem of getting the funds to you and the risk you lose access to your funds