Hi guys - I would highly recommend you get an accountant for this kind of stuff.
But if not, the basic knowledge to help you research this: - you theoretically should get taxed on wherever a company is domiciled it. The tests for that are basically where the board makes decisions, where the company is registered etc. - This is all defined and dependent on the tax treaty between countries. Australia has quite a few of those, and these issues are spelled out in those treaties. Elias Bizannes http://eliasbizannes.com On Thu, Jul 1, 2010 at 10:44 PM, Geoff McQueen - Hiive Systems < geoff.mcqu...@hiivesystems.com> wrote: > Hi Ryan, > > Re EU 'legal entity': I'm led to believe that you don't in any way become a > taxpaying entity in that jurisdiction, you don't file any income or tax > return type paperwork to authorities. So, it seems like you're registering a > business, but never 'trading' on that business and the credit card payments > actually come back to your Aussie bank account; you're not opening a bank > account in the EU, just a merchant acquiring account/code which actually > clears straight into Australia. Again, so I'm led to believe. > > Re Drivers for doing this: while there's certainly an aspect of "If you're > not here and we can't sue you then we're not going to trade with you" out > there, the immediate reason for setting up the LLC is just to get paid in > USD. Depending on the IRS situation and with the risk of double-taxation > with Australia, this could be the best course of action as the business > registration and annual costs are bugger all. The unknown is the IRS... > > Geoff > > -----Original Message----- > From: silicon-beach-australia@googlegroups.com [mailto: > silicon-beach-austra...@googlegroups.com] On Behalf Of Ryan Cross > Sent: Friday, 2 July 2010 3:42 AM > To: silicon-beach-australia@googlegroups.com > Subject: Re: [SiliconBeach] Re: Accepting USD Payments on Australian > Business Website > > Hey Geoff, > > I'm sure you've thought of this and are incorporating it into your > calculations, but doesn't option #2 (setting up in EU) also have > similar ramifications as setting up in the US? I would expect some > similar costs for incorporation as well as the same potential for > taxation on the money received there from the appropriate EU tax > entity. > > I'm also curious - have you found organizations that won't trade with > you because of the currency issue? or because you don't have a US > presence? I have heard of that its not uncommon in some industries > where some companies (usually medium to large corporates) won't do > business with non-US companies (unless there is a US-subsidiary or > something) or at least make it much much harder. > > Thanks, > Ryan > > On Fri, Jul 2, 2010 at 12:31 AM, Geoff McQueen > <geoff.mcqu...@hiivesystems.com> wrote: > > An update and a request for some advice from anyone on the list who's > > dealt with an LLC and Tax Identification Number issues in the US. > > > > Update: > > We've found there are three ways to charge in $US and have the money > > come back to Australia without registering any sort of US presence or > > opening a US bank account. > > 1. Go with NAB - they're the only Australian bank that can provide you > > with a multi-currency merchant account. As has been covered here > > before, this isn't exactly great value for a number of reasons, mostly > > price and surety related. > > 2. Set up an EU equivalent of an ABN, and then you'll find a bunch of > > banks who are more competitive, and will happily provide a merchant > > account that takes money in $US and has it deposited into your AU bank > > account. Still getting down to details on fees and affordability vis a > > vie the NAB option. > > 3. Go with a "Reseller", someone like Plimus of Fastspring. Their % > > rates are much higher than you'll pay for a gateway, but because > > they're "reselling" your product/service, they do all the work and > > they'll happily wire the money to your Cayman Islands account in time > > for you to buy another Pina Colada. Reportedly, though, Plimus hold > > back some money in case people run chargebacks on you. > > > > Another option of course is to get a US entity, bank account, and tax > > identification number. > > > > Advice request: > > From what I've read at sites like http://www.incnow.com/faq.shtml, the > > costs of incorporating an LLC in Delaware are pretty minimal. The > > annual francise tax and filing fees are just a bit over $100. Having a > > Delaware LLC will allow you to open a bank account in the business > > name, and then get your own Merchant account. Outfits like > > Authorize.net charge bugger all (in magnitude and percentage) for this > > sort of arrangement. > > > > Big question/risk: I'm worried about the real/hidden costs associated > > with this, specifically filing fees and tax stuff with the IRS. While > > Delaware might be cheap, the IRS scares me. We're planning on using > > this LLC just to receive payments, and then wire them back to the > > Australian bank account of the business. The LLC wouldn't actually > > "trade", but I'm worried that the IRS will hit us up for tax, and then > > the ATO will hit us up a second time. > > > > Has anyone on the list got any experience or IAMYL advice they can > > provide? > > > > On Jun 9, 10:00 pm, Andrew J <ajes...@gmail.com> wrote: > >> Hi Alan, > >> > >> If the problem is subscription capability you could look at coupling a > >> subscription billing service on top of PayPal PayFlow Pro (which > >> allows charging in multiple currencies and has costs about on par with > >> NAB merchant facilities - and is much quicker to set up). > >> > >> I know for a fact that Zuora (www.zuroa.com) have a pretty reasonable > >> subscription product which can back onto PayFlow Pro (although their > >> pricing isn't very startup friendly). More recently this market has > >> gained some competitors (CheddarGetter, Recutly etc.) who may offer > >> more attractive entry level offerings, and would be worth checking > >> out. > >> > >> Cheers, AJ > > > > -- > > You received this message because you are subscribed to the Silicon Beach > Australia mailing list. > > > > Guidelines on discussion: http://tr.im/ujKF > > > > No lurkers! It is expected that you introduce yourself: > http://tr.im/ujMm > > > > To post to this group, send email to > > silicon-beach-australia@googlegroups.com > > To unsubscribe from this group, send email to > > silicon-beach-australia+unsubscr...@googlegroups.com<silicon-beach-australia%2bunsubscr...@googlegroups.com> > > For more options, visit this group at > > http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en > > -- > You received this message because you are subscribed to the Silicon Beach > Australia mailing list. > > Guidelines on discussion: http://tr.im/ujKF > > No lurkers! It is expected that you introduce yourself: http://tr.im/ujMm > > To post to this group, send email to > silicon-beach-australia@googlegroups.com > To unsubscribe from this group, send email to > silicon-beach-australia+unsubscr...@googlegroups.com<silicon-beach-australia%2bunsubscr...@googlegroups.com> > For more options, visit this group at > http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en > > -- > You received this message because you are subscribed to the Silicon Beach > Australia mailing list. > > Guidelines on discussion: http://tr.im/ujKF > > No lurkers! It is expected that you introduce yourself: http://tr.im/ujMm > > To post to this group, send email to > silicon-beach-australia@googlegroups.com > To unsubscribe from this group, send email to > silicon-beach-australia+unsubscr...@googlegroups.com<silicon-beach-australia%2bunsubscr...@googlegroups.com> > For more options, visit this group at > http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en > -- You received this message because you are subscribed to the Silicon Beach Australia mailing list. Guidelines on discussion: http://tr.im/ujKF No lurkers! It is expected that you introduce yourself: http://tr.im/ujMm To post to this group, send email to silicon-beach-australia@googlegroups.com To unsubscribe from this group, send email to silicon-beach-australia+unsubscr...@googlegroups.com For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en
