Setup for subscription service, $300k monthly revenue

[juul2]

Hello all,

I am at a bit of a loss for a suitable setup for a digital subscription-based business that has ~$300k a month of revenue.
Very few expenses and all payments are from customers via stripe

UK citizen, currently operating as a UK LTD

I am flexible and happy to be quite aggressive

Thanks for any input

 

[Marzio]

I am flexible and happy to be quite aggressive

Are you willing to move?

 

[juul2]

Are you willing to move?

Ideally no

 

[VESTANON]

@juul2
whats the category/class of digital goods and current subscription base!!

 

[NicolasMaduro]

If you are not willing to move, then it doesn't really make any sense. You are trying to save on a 19% corporate tax, but you would need incorporate somewhere with lower or no corporate tax. Create substance trough a real office and real employees with real salary. I dont see how it would be worth it. Cause you are quickly gonna have to spent 5-10k pounds a month to create substance somewhere else.

 

[Jerry1911]

If you are not willing to move, then it doesn't really make any sense. You are trying to save on a 19% corporate tax, but you would need incorporate somewhere with lower or no corporate tax. Create substance trough a real office and real employees with real salary. I dont see how it would be worth it. Cause you are quickly gonna have to spent 5-10k pounds a month to create substance somewhere else.

His revenue is 300k USD per month. 19% corp tax means he's spending ~47k USD per month on taxes. Therefore spending 5-10k GBP per month on substance somewhere abroad is more than worth it.

 

[CyprusLawyer101]

Hi, what type of business is it? Are there any tangible/intangible assets in your business?

 

[369]

first question which should fall here is how high are your chargebacks.....

 

[Marzio]

first question which should fall here is how high are your chargebacks.....

If he is still selling on Stripe chargebacks are low or at least within their range.

 

[369]

If he is still selling on Stripe chargebacks are low or at least within their range.

diffrent solutions have diffrent chargebacks limits

 

[clemens]

I don't really understand the problem here, you have a UK company and you may already have a Stripe account to handle your ubscriptions? I don't read anything about taxes?

 

[juul2]

Should have mentioned, looking to reduce tax burden

Very very low chargeback rate

 

[CaptK]

What are the digital goods? This will dictate where you can incorporate.
Like it has been explained above you will need to set up an office with actual workers doing real work.
As you are a digital based business you can employ people to push the social media and marketing. Plus some admin in the offshore office.
Spend a sensible amount if you want to save the majority of that £720K tax bill. Budget £100K

 

[bonox]

What are the digital goods? This will dictate where you can incorporate.

exactly, if it is a secret it explains well why you have troubles!

 

[CyprusLawyer101]

Hi, what type of business is it? Are there any tangible/intangible assets in your business?