Where to register a company for a remote web development studio?

[Sombrero]

Hi there,

what would be the best country to register a company for a remote web development studio?

I read a lot in this forum and noticed that people often suggest a Florida LLC / Wyoming LLC. However I dont really understand why. I thought the United States are a high tax country and I guess there is a lot of regulation and bureaucracy as well, so why would it make sense to register a Florida LLC for a remote web development studio?

I know that a lot of people also suggest a Dubai company setup, however I do not want to register a company in Dubai simply because I do not feel familiar with the culture there and I am not interested in living or visiting Dubai. Another company setup would be in Cyprus, but I know that I need to live there for at least three months a year and this is not what I want. So in my case Dubai and Cyprus is no option.

Does anyone have alternative suggestions?

Here are some details which are most important for me:

- As less bureaucracy as possible, no over regulated business structure
- Easy to handle business structure from everywhere
- Tax savings is a nice plus, but not the main priority
- Good banking system
- Good reputation


EDIT: Btw I am starting from zero, so the company setup should be low cost and also I do not want to spend a lot of money for tax consultants. In my case I need to build up everything from the ground on, please consider this in your suggestions. Thanks!!

Thanks a lot for answers!

 

[koohl]

Dubai, Wyoming and Cyprus, which you mention yourself, are absolutely perfect for what you want. You've switched things around a bit. It is in Dubai you do not have to live in one of the mentioned countries to get the benefits. You must have what is called "substance" in the company! That is a real office with staff! Wyoming is probably the cheapest and easiest to go to.

 

[Sombrero]

Thanks for your answer!

I have some friends in Florida, so I would prefer to regeister a Florida LLC instead of a Wyoming LLC. Does it make any different to register the company in Wyoming or Florida? Both are under the same regulations right?

Furthermore can anyone let me know why it makes sense to register a Florida LLC / Wyoming LLC? What are the advantages and how much it costs to register a company there? Can I do everything online? I do not have what is called "substance" in the company! I am on my own and staring without employees.

In another threat I read that a residence in the Dominican Republic and a use of a Florida LLC / Wyoming LLC is a great setup. Is it possible to simply fly to the Dominican Republic and become a residence there?

I would actually prefer to get a residence somewhere in South East Asia. Can anyone recommend a country there?

 

[MiltonStone]

I have some friends in Florida, so I would prefer to regeister a Florida LLC instead of a Wyoming LLC. Does it make any different to register the company in Wyoming or Florida? Both are under the same regulations right?

Stick to Wyoming which is known to their privacy and tax regulations. That's the better option for you.

 

[Sols]

Start with a local company, unless you have a very good reason for forming a foreign/offshore company.

I know the first 20 pages on Google might make it look attractive to form an offshore company. The reality is that it's an absolute waste of time, money, and energy in most cases.

What advantages do you hope to gain from forming a foreign company? Why would it be better than forming a local company?

- As less bureaucracy as possible, no over regulated business structure

I understand what you're after but thought it worth mention that for example Cyprus and Malta have horrendous bureaucracy, but are still very popular and considered business friendly. The trick is you don't take on the bureaucracy yourself. You have someone else do it for you.

- Tax savings is a nice plus, but not the main priority

It's good that it isn't a priority, because it's not going to happen (unless you live in a tax haven, or feel like building your business on a foundation of tax evasion).

 

[Sombrero]

What advantages do you hope to gain from forming a foreign company? Why would it be better than forming a local company?

Simply to escape the Matrix. I already had a company in Germany and it was absolutely horrible, because the paperwork is just way to much and the tax consultants charge very high prices. The tax rules are way to difficult and for a small fish it is hard to understand it. Furthermore when you are a resident in Germany, you need to pay a lot of money for the health system and also you need to pay money for the telecommunication and for all kind of other rules and regulations. It is a system society and people who like to build something up from the start get treated like s***!

There are a lot of other reasons as well and I lost my trust in states in general. Therefore I want to build my own structure and I want to control it on my own, it is way harder but at least I am responsible for my own life and for my actions. The hole system in Germany is full of paperwork and it is simply not working. There are a lot of possibilities to simplify the system with digital infrastructure, but the people who work for the government are to lazy and to old to build it up.

I understand what you're after but thought it worth mention that for example Cyprus and Malta have horrendous bureaucracy, but are still very popular and considered business friendly. The trick is you don't take on the bureaucracy yourself. You have someone else do it for you.

Maybe you are right, but I am sure that there are way better options to build up a company structure. Specially for remote businesses there are better options and this is what I am asking for. Can someone recommend a setup for a small remote startup company?

It's good that it isn't a priority, because it's not going to happen (unless you live in a tax haven, or feel like building your business on a foundation of tax evasion).

I think this is wrong, I am sure there are better options also for tax savings!

 

[Sols]

Simply to escape the Matrix. I already had a company in Germany and it was absolutely horrible, because the paperwork is just way to much and the tax consultants charge very high prices. The tax rules are way to difficult and for a small fish it is hard to understand it. Furthermore when you are a resident in Germany, you need to pay a lot of money for the health system and also you need to pay money for the telecommunication and for all kind of other rules and regulations. It is a system society and people who like to build something up from the start get treated like s***!

So leave Germany. It sounds miserable there for you. The world is full of opportunities with lower tax and different societies with different cultures that may be better aligned with your personal believes. It's easier than ever (in modern times) to move to another country. There is probably a place out there with tax rates that are to your liking and a society and culture that are better aligned with your personal believes.

Maybe you are right, but I am sure that there are way better options to build up a company structure. Specially for remote businesses there are better options and this is what I am asking for. Can someone recommend a setup for a small remote startup company?

If you live in Germany, GmbH or UG are excellent vehicles. A good accountant can help you optimize deductions and incentives to make sure you pay the lowest possible amount you legally can. Team members in Germany are best onboarded as normal employees, while people in other countries can be contractors.

I think this is wrong, I am sure there are better options also for tax savings!

Your confidence is inspiring, but leading you down the wrong path.

What are you going to tell BZSt when they come asking for federal and state corporate tax, payroll taxes, VAT returns, and so on for your Florida LLC?

Let's look at how corporate tax residence is determined in Germany (taken from Germany - Corporate - Corporate residence):

A corporation is resident in Germany for tax purposes if its place of incorporation or its main place of management is in Germany. A corporation meeting neither of these criteria will be regarded as non-resident with tax obligations limited to its income from German sources.

Your Florida LLC isn't incorporated in Germany, but its place of management is in Germany. Additionally, even if your company somehow could be considered non-resident, any income the company earns from German sources (work that you do as a resident in Germany) is taxable in Germany.

Without relocation, the only tax savings you get are only going to last until BZSt comes knocking on your door. Then it's time to pay up (including retroactively) or face worse consequences.

 

[I'mRobot]

Living in Germany you want to relocate for better tax rates. Read what @Sols say and learn from it.

 

[Sombrero]

Thank you for your answer!

I think there is a misunderstanding. I am NOT a permanent resident in Germany anymore, neither do I own an apartment or any other assets in Germany. I only have a few German Bank Accounts, but this is all. I made the decision to leave Germany, to be able to show my middle finger to the German authorities.

So leave Germany. It sounds miserable there for you. The world is full of opportunities with lower tax and different societies with different cultures that may be better aligned with your personal believes. It's easier than ever (in modern times) to move to another country. There is probably a place out there with tax rates that are to your liking and a society and culture that are better aligned with your personal believes.

That's what I did! I currently have a limited right of residence. I am just allowed to visit Germany for 180 days, if I dont want to fall back into the system. At the moment I am looking to register a remote company for a small tech start up to have a proper business setup. I need to be able to send invoices to my clients in Germany and Europe that they can use for tax reduction. However as far as I know this is not possible when I have a Florida / Wyoming LLC.

The important question is: What business setup gives me the option to send invoices to european clients that they can use for tax reduction?

What are you going to tell BZSt when they come asking for federal and state corporate tax, payroll taxes, VAT returns, and so on for your Florida LLC?

It is important that I know exactly what I am doing, so that the BZSt don't have the rights to knock on my door.

Your Florida LLC isn't incorporated in Germany, but its place of management is in Germany. Additionally, even if your company somehow could be considered non-resident, any income the company earns from German sources (work that you do as a resident in Germany) is taxable in Germany.

As I said, the place of management is not in Germany anymore. I will register an offshore company soon and next year I will relocate to another country where I will register myself, but it won't be Germany.

Hopefully my situation is clearer now. I would aprechiate your advice as I need to register a company as soon as possible.


EDIT: I saw that in the Mentor Group Gold there are a lot of articles on how to find the right offshore setup, do you think it is a good idea to upgrade in order to get a better answer or more specific information? What is the advantage of the Mentor Group Gold?


Thanks for answers!

 

[Sols]

Thank you for your answer!

I think there is a misunderstanding. I am NOT a permanent resident in Germany anymore, neither do I own an apartment or any other assets in Germany. I only have a few German Bank Accounts, but this is all. I made the decision to leave Germany, to be able to show my middle finger to the German authorities.

OK, that's good to hear. I must have missed that.

The important question is: What business setup gives me the option to send invoices to european clients that they can use for tax reduction?

What are the corporate tax residence and PE rules where you live now? The same considerations as if resident in Germany apply with regards to forming a foreign company.

If you're worried about EU companies being able to claim your invoices as valid expenses, stay away from typical tax havens especially ones on the EU gray or black lists.

US companies are usually fine. Tax treatment of an LLC can be complex if you're resident in a place which doesn't automatically recognize LLCs as passthrough entities.

EDIT: I saw that in the Mentor Group Gold there are a lot of articles on how to find the right offshore setup, do you think it is a good idea to upgrade in order to get a better answer or more specific information? What is the advantage of the Mentor Group Gold?

Discussions in MG are often more earnest and frank. In your case, there might be information in there that would help guide you. No forum or other social media is a substitute for proper legal advice, though.

 

[johnwickert]

Estonia may be a good option for you as they have a simple and low-cost online company registration process, a favorable tax system, and a good reputation. Other options to consider are Hong Kong or Singapore, which have good banking systems and business-friendly environments.