I'm not trying to evade taxes. I'm European, and I pay taxes here. Still, even in Europe getting a Merchant Account is difficult. I'm simply looking at this because the cost (money/time) of starting and maintaining a Delaware Company might be less than the cost of setting up a Merchant Account over here.
Without US company:
1. Europe company sells subscription for 20/month
2a. Taxable income in Europe
2b. No taxable income in the US
With US company:
1. Sell subscription through a US company for $20/month
2. US company receives $18 (Merchant Account keeps 2)
3. US Company buys subscription at Europe company for $18
4a. Taxable income in Europe
4b. No taxable income in the US
Am I really "draining taxable income" if in the other scenario there wouldn't be any US taxable income either??
Is this what you recommend:
1. Sell subscription through a US company for $20/month
2. US company receives $18 (Merchant Account keeps 2)
3. US Company buys subscription at Europe company for $17
4. Profit of $1 per subscription per month
5. Business expenses (including accounting & tax return)
6a. (eg) 5% of total revenues is now taxable income in US
6b. (eg) 95% of total revenues is taxable income in Europe
Of course I would need a good accountant, but things still look pretty simple to me... The only thing I need to calculate business income / expenses is how many subscriptions were active during a month. Please do understand the cost (time/money) of getting a Merchant Account over here. I like to keep things simple too, and it might just be the US route is simpler.