Country selection advice

[JustAnotherNomad]

I meant the same thing as you said that it’s money from a Swedish company but I mean the company is in nevis so why does it matter?

The company is not in Nevis if it's just you and you run it from Sweden.
Otherwise every Swedish person would just register a Nevis company instead of a Swedish company to save taxes and no one would have a Swedish company.
It's not illegal to set up a Nevis company and run it from Sweden, but then you have to declare it as a Swedish taxpayer and pay tax just as if it was a Swedish company.
If you register the company while you're still living in Sweden, you are creating a Swedish company in the eyes of the tax office, and it will be treated just like a Swedish company when you move abroad. Which may be fine, or it may create a tax liability.

 

[Learner458]

So basically to sum it up, yes it is a good idea to open an LLC in Nevis, and I should definitely tax to a Tax Barrister before proceeding to anything?
Also I'm kind of young so just so I know approximately, what does it cost to discuss this with a Tax Barrister? Also do you have any agencies that you'd recommend since I'm currently planning on going with a BBCincorp.

 

[sknomad]

I currently run a proxy service as a one man operation. I currently want to move my company offshore outside of EU since the VAT and taxes are insane. Also move out of EU for limited tax liability. What I currently found was that Nevis LLC seems promising but I’d love to hear your thoughts.

The company is currently revenuing 5 figures and about 75% of the payments are crypto and 25-30% are in card payments. Any suggestions for banking and if you got a better choice then nevis would be much appreciated

Also if you’ve got any personal favourite agencies to go threw, i would love to hear it.

If your proxy servers are outside of EU, services can be exempt from VAT. If service is provided to EU customers and service is provide outside of EU and is provided remotely, this service can be tax exempt.

There is a practical problem of billing customers who pay by credit cards. There is almost no way how you can have a merchant account for offshore company providing proxy service. Even if you find some high risk credit card processor, fees will be too high.

You should consider more complex structure. To be able to bill a clients in EU without loosing too much of money, UK LLP backed by 2 offshore companies registered in a jurisdiction with which UK have a DTT can be used.

 

[Learner458]

That’s actually an aspect I didn’t consider at all. Really appreciate bringing it to my attention since I currently do use Stripe as a credit card processor.

Though multiple offshore companies and one mainland company seems very complicated for just a 5 figure a month business. Isn’t there an option where I can just run an LLC with Stripe without major VAT concerns and 0 tax for when I solve the Swedish Tax Liability issue?

 

[ilke]

So basically to sum it up, yes it is a good idea to open an LLC in Nevis

It is a fine idea, not great, maybe there would be better alternatives because Nevis is really hard to bank but provides quite a lot of protection. It depends on where you move, places without PE (or no enforcement of such), you could run a transparent company like a US LLC which will distribute directly to you and get banking easier.

and I should definitely tax to a Tax Barrister before proceeding to anything?

I do not think you need one in this case but you could.

The main fact to consider is that as long as you live in Sweden, any foreign company you register will become a Swedish tax resident.

Also do you have any agencies that you'd recommend since I'm currently planning on going with a BBCincorp.

They get the job done but they are not great for consulting you/providing recommendations based on your situation. If you just need the incorporation and everything arranged, it is alright.

Also take @sknomad's ideas into account because VAT could be avoidable this way and the UK LLP is also quite a reasonable idea. You could appoint 1 offshore company and yourself as partners; you have to disclose the PSC either way.

Though multiple offshore companies and one mainland company seems very complicated for just a 5 figure a month business. Isn’t there an option where I can just run an LLC with Stripe without major VAT concerns and 0 tax for when I solve the Swedish Tax Liability issue?

The US LLC, probably.

Or just a local company in a country you move to with low(er) taxes, that should not have a problem getting some card processing either.

 

[Learner458]

Yeah I do have a competitor who I talk to since we’re friendly and he is running a US LLC but the main reason I don’t like it is since the jurisdiction. Firstly it’s very easy to get sued and secondly they are too compliant if you know what I mean. Like I don’t have any problems with compliance but there are things as too much transparency.

 

[sknomad]

That’s actually an aspect I didn’t consider at all. Really appreciate bringing it to my attention since I currently do use Stripe as a credit card processor.

Though multiple offshore companies and one mainland company seems very complicated for just a 5 figure a month business. Isn’t there an option where I can just run an LLC with Stripe without major VAT concerns and 0 tax for when I solve the Swedish Tax Liability issue?

Consider Hong Kong. But you will loose some money o fees. The same with US LLC. If you form Hong Kong company and all your servers will be outside of Hong Kong as well as outside of EU, there will be no VAT applicable and you can apply for Offshore income claim so there will be no Corporate tax.
What is a currency in which you have a main costs?

 

[Learner458]

Almost all costs are in USD, also I currently resell proxies and don’t actually host the servers. So it’s basically a digital import and export business.

 

[daniels27]

If your proxy servers are outside of EU, services can be exempt from VAT. If service is provided to EU customers and service is provide outside of EU and is provided remotely, this service can be tax exempt.

Why would it be exempt? Any digital service sold to EU customers is subject to VAT. And while you can hide and just not pay it, that does not mean it is exempt. Any customer that you make angry can turn you in. They just contact you credit card company and tell you how much you owe.

 

[daniels27]

Consider Hong Kong. But you will loose some money o fees. The same with US LLC. If you form Hong Kong company and all your servers will be outside of Hong Kong as well as outside of EU, there will be no VAT applicable and you can apply for Offshore income claim so there will be no Corporate tax.
What is a currency in which you have a main costs?

Why would Hong Kong be better than the US? Hong Kong is much more transparent than the US and compliance is much worse. Let alone how is he ever to get past the audit there for less than 10k USD?

 

[providenceventurer]

No but income earned within Sweden like from customers. Also I was thinking it’s better to move the company first since otherwise 20% of my revenue is going straight to VAT

No first move your a*s and then make the business move rightly suggested by @daniels27

 

[providenceventurer]

But I mean would you say that Nevis would be a good option for an offshore company formation?

Nevis is good .

 

[Learner458]

Nevis is good .

Turns out it isn’t due to Stripe not bring available.

 

[Learner458]

I’ll probably settle for a US LLC unless I find a better solution.

Turns out it isn’t due to Stripe not bring available.

 

[Clank]

Turns out it isn’t due to Stripe not bring available.

Stripe will probably end up closing your account so I wouldn't rely on them that much.

 

[Learner458]

Why will they probably end up closing my account? I mean I run a legal business and pay taxes.

 

[providenceventurer]

Turns out it isn’t due to Stripe not bring available.

Having stripe or not cannot decide whether a jurisdiction is good for business or not.You obviously have options for a cloaked stripe account if you want and i am sure other options are there .A jurisdiction is good if it provides anonymity and also no foreign courts verdict is applicable there.Nevis is one of them.

 

[Learner458]

Might be a silly question but what is a cloaked stripe account?

 

[daniels27]

Might be a silly question but what is a cloaked stripe account?

In short: It is an account that is for a legit non-risk business. Once approved, you redirect your sales to the legit domain and they pay from there. They cannot see your proxy business.

 

[Learner458]

Ahh I see, so Daniel what would you personally recommend for my situation?

In short: It is an account that is for a legit non-risk business. Once approved, you redirect your sales to the legit domain and they pay from there. They cannot see your proxy business.