Hi all,
I am a Canadian resident but have an IBC in Belize along with banking account in Belize. I am looking to start an online shopping cart business via drop shipper and understand that none of the services that I use (merchant, dropshipper, web hosting etc) should be from within Canada to ensure it is a truly international business. I therefore have the following questions:
1. Is it ok to use merchant services, dropshippers and web hosting in the USA (since I live in Canada)? The lines between the US and Canada get very grey when it comes to taxation and information sharing.
2. Are there any affordable merchant services out there that are truly offshore? My bank in Belize offers these services but is very expensive between monthly flat fees and heavy discount rates. This seems to be the norm with offshore merchant accounts - I've looked at a number of them.
3. Can anyone recommend merchant services, dropshippers and web hosting that is all offshore (non Canadian or US)?
4. Any other advice or gotchas?
The following is something I pulled from another website but appears to be a good general guide:
To take advantage of the e-commerce opportunity for tax optimization purposes, you need to set up an offshore corporation that you neither own nor control. This then can be your platform for an international business with great tax benefits.
A few of the basic ingredients would therefore include:
1. An a "non-controlled" IBC and a bank account in a tax haven country.
2. Web hosting in a country other than your own.
3. Credit card merchant account - outside your home country - and preferably directly with a bank also in a tax haven country.
To make this arrangement even more secure, you should also ensure that whatever product or service is being provided is also based in, or distributed from, an "offshore" location. Consequently, there is no literal business activity taking place on your home territory. Even better, you can employ people offshore. What you want to achieve is a genuinely international business, one outside your own tax jurisdiction.
I'm hoping someone on this forum can assist me with my questions.
Thanks!
I am a Canadian resident but have an IBC in Belize along with banking account in Belize. I am looking to start an online shopping cart business via drop shipper and understand that none of the services that I use (merchant, dropshipper, web hosting etc) should be from within Canada to ensure it is a truly international business. I therefore have the following questions:
1. Is it ok to use merchant services, dropshippers and web hosting in the USA (since I live in Canada)? The lines between the US and Canada get very grey when it comes to taxation and information sharing.
2. Are there any affordable merchant services out there that are truly offshore? My bank in Belize offers these services but is very expensive between monthly flat fees and heavy discount rates. This seems to be the norm with offshore merchant accounts - I've looked at a number of them.
3. Can anyone recommend merchant services, dropshippers and web hosting that is all offshore (non Canadian or US)?
4. Any other advice or gotchas?
The following is something I pulled from another website but appears to be a good general guide:
To take advantage of the e-commerce opportunity for tax optimization purposes, you need to set up an offshore corporation that you neither own nor control. This then can be your platform for an international business with great tax benefits.
A few of the basic ingredients would therefore include:
1. An a "non-controlled" IBC and a bank account in a tax haven country.
2. Web hosting in a country other than your own.
3. Credit card merchant account - outside your home country - and preferably directly with a bank also in a tax haven country.
To make this arrangement even more secure, you should also ensure that whatever product or service is being provided is also based in, or distributed from, an "offshore" location. Consequently, there is no literal business activity taking place on your home territory. Even better, you can employ people offshore. What you want to achieve is a genuinely international business, one outside your own tax jurisdiction.
I'm hoping someone on this forum can assist me with my questions.
Thanks!
