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US Tax brackets on IT infra and Hosting services
Hello to everyone here on LET.
I have been watching discussions here for months and learning alot about hosting specific needs. We are a small group of System Admins based near Nice(France) providing hosting and optimization of web services to our selected (small) group of clients across EU, US, AU.
We are trying to understand Tax implications of setting up an office and subside a base in the US. As I read, this varies much from state to state and being small we would like to go with the easiest route possible. We prefer the eastern side namely FL,CHI,MI,OH or neighboring states as we have contacts and potential partners from there and can get bank account opened.
Payment wise we ill primarily be using Stripe > Paypal
Still I wanted to check here on LET as I see a lot of users and providers here are from US so need a bit of help here getting familiar with TAX brackets and implications specific to REMOTE SERVICES rendered for :
Web / Cloud Hosting where you “trade” servers hosted (bought by me) in a Datacentre in or outside US and host your customer’s website, database and other business transactional services like billing and payment processing on these servers (Sold to them)
Consultation of IT infra, Web Design/Dev, Online Marketing over Search Engines and Social media. (these can be additional services for some clients)
Will we need a CPA to be hired for tax filing (if applicable) or can we manage that on our own?
As you can see, the main purpose of setting up base in US is to save on EU VAT and refrain USD to EU fluctuations and provide simpler pricing and payment to our US based customers.
Please give your views and pointers for good resources to read and reach out to. I'm open to suggestions (and warnings).
Comments
You're going to get the best legal and accounting advice money can buy on LET
You signed up on LowEndTalk just to post a thread about legal advice on U.S. tax system?
Interesting, but this also depends on the state you are in.
Ask your accountant or your lawyer.
https://stripe.com/atlas
This is complete bullshit, you should seriously seek an accountant since you won't find any help here on LET.
The suggestion of @vfuse is also a nightmare to deal with if you are operating from the EU. (At least if you want to operate legally)
well thats a good discussion to follow
Thanks for the inputs till now.
But @nik, why do you think it is bullshit to ask such a thing ? We have been working for many US clients and also have team members there working remotely from US locations, obviously we pay them in USD. Being small company for now, we think why not retain USD earned in a US bank and meet our USD expenses from there alone. Anything out of line here ?
@vFuse, I'm aware of Stripe Atlas as I mentioned in my opening post, however the question here is not about payment gateways, but setting up as a US company and knowing Tax implications.
Ofcourse, we will be consulting tax advisors and CPAs for sure, but before that I just wanted to casually reach out this enormous community specific to hosting and web business to seek some preliminary advice.
Call to providers: How much is the tax by the way on hosting services typically in Florida, Chicago, Michigan or Ohio ?
This is a complicated answer. Each person/company is going to be different. Talk to an accountant for your specific situation.
You didn't get it right. Stripe Atlas will register your company as well as help you open bank account. Maybe some tax advice.
I wouldn't ask tax advise on this community where (a random statistic incoming...) 80% of members lives outside the USA. I bet that China reign supreme in these statistics.
I know in the UK you don't need to register for VAT until you hit a minimum amount of revenue/year. Is there not something similar in France?
Why don't you open your business in a sketchy tax-free heaven?
I doubt that he'd be able to survive the subzero temperatures in the Arctic.
and the other 20% in their mom's basement
Just open it in Texas. Every time someone crosses the border to collect taxes we hurl large crates of tea into the ocean, lake, or nearest pool until they leave confused and defeated.
Also hire a lawyer because I know for a fact that if I start drinking I will the among the top 5 people here giving you tax advice, in order of quality and legality of said advice, and that's not a great thing.
Thank you all for your kind advices, should come in handy, even the jokes
I've known mean drunks, violent drunks, slutty drunks, funny drunks, sleepy drunks, and insulting drunks.
But the "spouting tax advice drunk" sounds like the worst possible sort.