D
Deleted78083
Guest
If you want to build an online business, I'd recommend opening an e-company in Estonia. Everything is made for you to effortlessly run your company anywhere in the world and the Estonian government provides you with a trusted list of companies that can help you deal with taxes, vat, accounting etc. They automated as many tasks as possible to make it efficient and effortless. You benefit as well from the fact that Estonia negotiated agreements with most world countries so you won't have to pay taxes twice.
In terms of taxes, it's a 20-20-20, let me explain. Firstly, good news: you won't pay any taxes if you leave your revenue in the company, which is quite nice. Otherwise, it is always 20% for everything: VAT, state taxes, employee taxes. So, if your company makes 100 000€ in revenue and you reinvest these revenues or simply leave them as it is without paying yourself nor anyone any dividend or salary, you'll pay...0% tax.
If out of these 100 000€, you pay yourself a salary/dividend of 1200€, you'll pay 240€ of taxes (20% of 1200€) and will therefore end up with 960€. The VAT is also at 20%, but if you don't sell anything in Estonia, that is completely irrelevant. If you hire an estonian employee and pay them a before-taxes salary of let's say 1200€, same thing: you'll pay 240€ of tax for your employee.
I met an Australian once that was buying and selling commodities on world financial markets with this type of LLC, he said it worked really well. For me, where starting a company is a rather long and expensive process, I've thought many times that I'd use this Estonian service. Anyone in the world can sign up, no need to be European.
More info here: What is e-Residency | How to Start an EU Company Online
In terms of taxes, it's a 20-20-20, let me explain. Firstly, good news: you won't pay any taxes if you leave your revenue in the company, which is quite nice. Otherwise, it is always 20% for everything: VAT, state taxes, employee taxes. So, if your company makes 100 000€ in revenue and you reinvest these revenues or simply leave them as it is without paying yourself nor anyone any dividend or salary, you'll pay...0% tax.
If out of these 100 000€, you pay yourself a salary/dividend of 1200€, you'll pay 240€ of taxes (20% of 1200€) and will therefore end up with 960€. The VAT is also at 20%, but if you don't sell anything in Estonia, that is completely irrelevant. If you hire an estonian employee and pay them a before-taxes salary of let's say 1200€, same thing: you'll pay 240€ of tax for your employee.
I met an Australian once that was buying and selling commodities on world financial markets with this type of LLC, he said it worked really well. For me, where starting a company is a rather long and expensive process, I've thought many times that I'd use this Estonian service. Anyone in the world can sign up, no need to be European.
More info here: What is e-Residency | How to Start an EU Company Online