Online Business - Where to place the bank account

[Giles]

Evening all
I'm not in the situation where I need this advice, but have been thinking about it recently.

If you had an online business taking payments through the site, what is the best way to process this income. Is there an ideal offshore bank account or loopholes that can be used to minimise tax, instead of payments going directly into your US bank account?

What are the common methods?

Thanks.

 

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[Jonleehacker]

Do you want your country to go bankrupt?

 

[Giles]

No, I want to know common methods internet businesses use to minimize tax, as they have the freedom to be registered in any country (if Im not mistaken - and if I am mistaken, then please post and teach me).

 

[Giles]

Thanks for the thorough answer. I guess I've always just assumed many Web Based US businesses had 'offices'/headquarters offshore to minimise tax.

This discussion is just because im interested in the topic, and maybe to help some others - as being a New Zealand citizen myself, have no need to be overly knowledgable in US laws.

 

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[Jonleehacker]

Thanks for the thorough answer. I guess I've always just assumed many Web Based US businesses had 'offices'/headquarters offshore to minimise tax.

It is more common for web based business to be headquartered off shore to avoid regulation than to avoid taxes.

For example online casinos are illegal in the US, so they are all run in the Bahamas or some other place without these regulations.

 

[paqman]

If you had an online business taking payments through the site, what is the best way to process this income. Is there an ideal offshore bank account or loopholes that can be used to minimise tax, instead of payments going directly into your US bank account?

Like others have said, just go legit, put the account wherever you have your Corp/LLC, and hopefully that is the same state/venue where you reside over 50% of the year. It's never worth the headache of shaving money from the State/Fed only to find out some weasel gave you bad advice and you end up having penalties, plus potential tax fraud charges... Never worth it.

A solid and reputable accountant will help you find tax loopholes, but won't show you tax fraud/avoidance. There are many legitimate ways to lower your taxable income without breaking the law.

 

[teabag]

You might think it's smart now to minimise tax by doing dodgy schemes, but the second you get caught - you'll have a big black circle around your name for life.

But if you can find legal loop holes go for it.

Australia comes down on tax hard. I know a family friend who was being investigated for 8 years before the ATO took action agaisnt him.

$12 million in fines for fraud and 7 years jail time!

Also his actions didnt hurt him alone, his company was shut down and over 100 people lost their jobs :/

 

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