I need to show I own a company for a website that does not generate any revenue. It's part of a sponsorship program which gives me certain non-financial benefits (cloud credits). No revenue will be generated. Why do it? I'd like to use the program free credits to train my own custom AI algorithms and other things, maybe make GPT 5 (joke, who knows). The provider of the sponsorship program does not retain any IP I create so where the company resides doesn't matter. They just want proof that the website is owned by a company anywhere in the world. That's it. Nothing else. But they will verify the company is real and exists, and I don't wish to breach their terms using a fake one. Why does this sponsorship program offer this free service? To hook people into using their cloud network after the sponsorship program and its free credits end (hint: the free credits can go to very high figures). Not really relevant to my question but perhaps that will explain why I'm looking to do something so weird as create a company that will not generate any revenue nor hold any assets of value, in case if anyone is curious.
Back to the question: I'm not a tax resident of any particular country as I travel a lot, and the countries I do travel to are based on territorial tax not International tax. I don't wish to incorporate in my home country (Australia) as it may be used as evidence to prove residency there even though I don't live or visit there anymore (haven't for many years). So long story short: I'd like to form a company somewhere that will do nothing, and own nothing apart from a website that will generate no revenue. The website will be a legitimate free website, offering generic bland information. Nothing dodgy, nothing special. I'm looking for the cheapest possible solution where I won't be harassed, risk large fines, etc.
I was heavily leaning towards a US LLC within Wyoming or New Mexico. The thing that completely scared me off after further research was the apparent Form 5472. If this is not filed or filed incorrectly, minimum fines of $25k USD are apparently issued. From my research it appears it needs to be filed even without an income. Simply paying a web hosting fee is enough to trigger it (even as an expense). I've viewed posts here and on reddit that give very mixed opinions: Many say no filing is required without an income, many say it is. I don't wish to take the risk. Simple as that. I cannot afford such a fine. And I know the IRS forms can be difficult to file and mistakes are punished dearly.
The US LLC incorporation providers seem incredibly cheap initially, but once you add in IRS compliance including Form 5472, their packages quickly go up to $1k USD. What's worse is that many of these providers don't mention anywhere that Form 5472 may be required to be filed. That's a bit concerning.
So what is the cheapest possible jurisdiction where I can incorporate a company that won't generate any income, and where I won't have to fear an arbitrary fine, jail time etc, because I failed to file a tax return indicating no income, or something like that? I would like to do things legitimately of course. I had a company before in Belize so am somewhat familiar with the jurisdiction. It seems perfect but providers seem to require around $700 per year minimum, and one of the reasons I dissolved my company there before was the introduction of some annual return filing. Service providers seem to cover this though for around $300 per year. But all in all, this again approaches $1k USD per year (same problem as incorporating in the US). Other apparently cheaper jurisdictions seemingly require nominee directors, which again push the price up to the $1k+ per year margin.
To confirm - I don't need a bank account or anything else, just a company. It won't generate revenue, but it will incur expenses (domain hosting, registrar renewal, etc). I intend to 'invest' a lump sum into it to cover these expenses for the duration of its life (as long as the sponsorship program lasts). The package needs to be all inclusive. I don't wish to be filing tax returns, or if I must, they should be simple to file. Simply forgetting to file a certain form shouldn't risk me incurring a massive penalty.
What is the cheapest solution possible for this specific scenario?
Thank you.
Back to the question: I'm not a tax resident of any particular country as I travel a lot, and the countries I do travel to are based on territorial tax not International tax. I don't wish to incorporate in my home country (Australia) as it may be used as evidence to prove residency there even though I don't live or visit there anymore (haven't for many years). So long story short: I'd like to form a company somewhere that will do nothing, and own nothing apart from a website that will generate no revenue. The website will be a legitimate free website, offering generic bland information. Nothing dodgy, nothing special. I'm looking for the cheapest possible solution where I won't be harassed, risk large fines, etc.
I was heavily leaning towards a US LLC within Wyoming or New Mexico. The thing that completely scared me off after further research was the apparent Form 5472. If this is not filed or filed incorrectly, minimum fines of $25k USD are apparently issued. From my research it appears it needs to be filed even without an income. Simply paying a web hosting fee is enough to trigger it (even as an expense). I've viewed posts here and on reddit that give very mixed opinions: Many say no filing is required without an income, many say it is. I don't wish to take the risk. Simple as that. I cannot afford such a fine. And I know the IRS forms can be difficult to file and mistakes are punished dearly.
The US LLC incorporation providers seem incredibly cheap initially, but once you add in IRS compliance including Form 5472, their packages quickly go up to $1k USD. What's worse is that many of these providers don't mention anywhere that Form 5472 may be required to be filed. That's a bit concerning.
So what is the cheapest possible jurisdiction where I can incorporate a company that won't generate any income, and where I won't have to fear an arbitrary fine, jail time etc, because I failed to file a tax return indicating no income, or something like that? I would like to do things legitimately of course. I had a company before in Belize so am somewhat familiar with the jurisdiction. It seems perfect but providers seem to require around $700 per year minimum, and one of the reasons I dissolved my company there before was the introduction of some annual return filing. Service providers seem to cover this though for around $300 per year. But all in all, this again approaches $1k USD per year (same problem as incorporating in the US). Other apparently cheaper jurisdictions seemingly require nominee directors, which again push the price up to the $1k+ per year margin.
To confirm - I don't need a bank account or anything else, just a company. It won't generate revenue, but it will incur expenses (domain hosting, registrar renewal, etc). I intend to 'invest' a lump sum into it to cover these expenses for the duration of its life (as long as the sponsorship program lasts). The package needs to be all inclusive. I don't wish to be filing tax returns, or if I must, they should be simple to file. Simply forgetting to file a certain form shouldn't risk me incurring a massive penalty.
What is the cheapest solution possible for this specific scenario?
Thank you.
