US Citizen - best tax setup for PayPal

kiedeerk21 May 2018

replies: 3
views: 77

kiedeerkNew MemberAuthor

Joined: Mar 2018
Messages: 2

21 May 2018#1

Hi all!

Asked this in public threads. Wanted to get more answers from the MG

Would like to ask for some advice on the most tax-advantaged setup for my company.

Currently i run a e-commerce business with revenues of 10k a month and scaling fast. Projected 20-30k/mo in 3-4 months time. Customers pay mostly Paypal, but Paypal is not a must. I am fine with transitioning to using cc/debit invoicing.

I reside in the US and hold both US and Chinese passports. From reading the forums, i am thinking:

1.) Belize/St Kitts Incorp
2.) Cyprus bank account?
3.) 2Checkout

What countries support 2checkout? What other payment processors work and what offshore jurisdictions are they effective in. What kinds of documentation would i need. Finally, what further advantages do i gain from holding a foreign passport.

Thanks in advance for any advice. Would someone also advise me if such a solution is already present in the Mentor Groups?

Thanks in advance
Kiedeerk

JohnLockeOffshoreCorpTalk owner

Joined: Dec 2008
Messages: 15,888

21 May 2018#2

Belize is banned by 2co, so it's not a good idea to go that route! I don't know with St. Kitts but you may ask their support or check on their F.A.Q if you can clarify that.

I would consider to setup some sort of EU entity, either a UK, Cyprus or Malta corp for payment processing needs, it will open the doors for a wealth of payment processors.

You just want to setup the business like this.

Incorporate in one of the above mentioned countries, apply for merchant accounts / payment processing with the processors you want i.e. 2checkout, payzera, mister tango, wire card and not to forget STRIPE.

Once you are setup and you are VERIFIED by them, you setup a Seychelles or Belize corp and transfer all shares of the EU entity to this "holding company" to avoid any tax liability in the EU.

This is not tax advise and just a suggestion, you need to do more research and even consult a tax consultancy.

kiedeerkNew MemberAuthor

Joined: Mar 2018
Messages: 2

22 May 2018#3

Great thanks for that advice. That is a route I am not familiar with. Do you recommend UK?

Thanks

hijuActive Recruit

Joined: Feb 2017
Messages: 263

29 May 2018#4

UK can work very well for an e-com business and it's cheap, easy and fast to setup.

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