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Where is my internet business located?

For tax and protection for a self employed person on the Internet.

         

lasko

9:25 am on Jun 14, 2003 (gmt 0)

10+ Year Member



I am a self taught web designer, seo and business man who lives in Europe.

I have some websites that are now making some good money for me and I will be offering more services in the future years.

My wife is from a different country and we plan to live in her country which is soon to join Europe.

My web sites are registered (whois) in Spain as the site owner and is hosted in America but I am living in the Czech Republic.

I am providing services for people in Spain and also here in the Czech Republic. I want to take a big step and go professional and make it into a real business.

Can anyone give me some feedback or info on the law regarding where the website is hosted or registered (whois) specially when its a .com do I have to work around the American law.

Need to sort myself out and understand it more clearly so I can offer my services.

Would appreicate any comments.

Woz

9:43 am on Jun 14, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



In my not-legal opinion, for tax and legal purposes your business location is where your business is registered, or in the event you have no registered business, where you are currently paying taxes, even though your assets and services may be spread around the globe. However, if you are unsure it would be worth contact your lawyer and accountant for verification.

Onya
Woz

StatCounter

2:14 pm on Jun 15, 2003 (gmt 0)



If you are going to be living in your wife's country, then you'll have to register for tax within that country, and pay tax to that government.

Your activities in the united states are not taxable if you are a non-resident of the united states.

That's my current non-legal understanding of the situation and I could be mistaken.

blonde

3:03 pm on Jun 15, 2003 (gmt 0)

10+ Year Member



My "Opinion" based on American tax laws:

If you are an overseas internet/website/hosting SERVICE RELATED Business transacting with USA businesses, the only tax that you would worry about is Sales Tax, (every state has it's own rules, taxing authorities and laws) and to my knowledge these service industries are NOT SUBJECT to sales tax in any of the USA state taxing authories.

Regarding your move from country1 to country2:

1.) Most important thing is location of where the business operates. This is where YOU operate the business. You should apply for the proper local/state licenses to operate your business there, because if you don't and they catch you, they can shut you down, or worse......go back to the beginning of time, calculate your sales however they want, tax you as much as you want, then slap penalties and interest on! If your business moves from state1 to state2 or country1 to country2 you will probally have to set up business_state2 and close business_state1 with the state taxing authority

2.) Determine where your point-of-sale location is. This is where you will need to contact the different taxing authorities and file the necessary taxes.

Example: if your office is in New Jersey, your server is in Seattle, and you bank account where your customers pay you for your service is in New York (the address on the bank account is New Jersey)

Your point of sale is New Jersey. (same if international)

PS. don't worry about the whois .com registration and where website is hosted/server location - for USA Federal and State Tax laws it doesn't matter

blonde

3:13 pm on Jun 15, 2003 (gmt 0)

10+ Year Member



You need to check this thread out.
[webmasterworld.com...]
guess all you Europeans have a new VAT on the way...
YUCK!

bird

3:44 pm on Jun 15, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Blonde, european businesses already have to register VAT for all internal transactions as it is. The changes mentioned in that thread only have an effect on non-EU businesses (and even then only beyond a certain volume threshold).