Hi there everyone. I need advice. I am making money with dropshipping. I have done close to 100k in paypal+stripe. I was kinda looking to go legal, as in making an LTD in Estonia for example, that was one of the ideas, as I live in the Baltic States myself.
The main reason why I want to make an LTD is that I want to make a solid Stripe or any other processing account, as of now I need to switch every 50k and for that, I need to find different people to who I will make the EIN and Payoneer and Stripe itself. So to do so I thought maybe I could make an LTD in Estonia and get a good accountant that could help to save on taxes. Also I was looking to the US itself , Delaware or any other 0% tax state, but I've heard that rules there are pain in the a*s as well accountant probably costs a lot more.
Would be really cool to see some good and serious answers, as I am new to this and don't know a lot, but willing to learn and get some advice from professionals.
I don't know how much profit you are making but there is no reason not to go legal with a Ltd. Estonia is fine for such business purposes. You will however still maybe be taxed what ever structure you use if the effective place of management and control is in your home country. You may in the end just choose to relocate to Estonia and pay yourself a small salary from your income.Then keep the rest sheltered in the company tax free while re-investing it within the company.
I don't know how much profit you are making but there is no reason not to go legal with a Ltd. Estonia is fine for such business purposes. You will however still maybe be taxed what ever structure you use if the effective place of management and control is in your home country. You may in the end just choose to relocate to Estonia and pay yourself a small salary from your income.Then keep the rest sheltered in the company tax free while re-investing it within the company.
Well the idea is to go legal in Estonia and pay as little tax as possible of course. I just want to understand a little better all the things. Overall I am mostly selling to US and UK, nothing is sold in Baltic States, so I think that would help with tax reduction to lower them somehow...
You can't lower corporate tax rate lower then zero. In Estonia you only pay corporate tax on distribution of profits. So unless you need all your corporate pofits each money you can house it indefinitely in the company tax free and pay yourself a small salary while living in Estonia.
And what about dividends? Im just thinking if it's even worth it to open a company there as I am from Latvia myself, but in here taxes are much higher... but well for example dividends you can take out 4 times a year...
