I'm going to pay someone, I assume its difficult to do, so I'd rather just pay

I have a really good accountant, I don't like to talk about IRS stuff on the internet. I haven't done much internet marketing but I have made over 250k plus a few years and he has helped a lot. He's in NY PM if you want details.

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'...I haven't paid income taxes for over twenty years, since I left the U.K.

I was self-employed in the U.K. and couldn't get out of paying taxes or VAT (Value Added Tax) through my businesses.

Once I moved to Spain and now Thailand, as far as the authorities are concerned, I am retired. With a few shekels in the bank, I can prove I have enough to live off and so I am not bothered by the authorities. Thai people think all foreigners are millionaires, even if they are only 18-years-old. I am a bit more than that and so they do not doubt that one can retire at a young age.

As all of my business interests, at the moment, are Internet-based, I get away with it. However, I am about to open two more businesses and, while the marketing will be mainly done over the Internet, I have to put myself about a bit including magazine and television promotion and so will probably have to pay a token amount. Thankfully here, it is very small even though it is corporate tax paid through my Thai company.

It is vital you take care of the outgoings, even if you are making heaps of money and that includes paying the legal minimum amount of tax.

I might not sound very patriotic and I still love the country of my birth, but not what the politicians have done to it. When they listen to the likes of me, and I have always been a grafter and still work a minimum 18 hours per day, and spend the money I 'would' pay in taxes accordingly, then I will be happy to pay. Until then, and it's never going to happen...Screw them!

Rambo forum member will know what I am talking about. He's still in the U.K. which is now unrecognisable from when I was growing up.

I would take a personal pride in castrating Tony Blair and all his cronies, even though he is no longer Prime Minister. Systematically, he destroyed Great Britain and deserves the same fate as Saddam Hussein.

Apologies for the rant.

themagician

All great info, I am about to find an accountant. Can anyone give an idea howmuch someone will charge for creating a corp?

Thank you

Creat it yourself, just speak to the accountant and find out which corp you should create. There is a lot of information online.

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It varies from state to state too.

Ok I will do that, thank you!

I've lived in the Bahamas for several years. Good broadband connection from a tolerant ISP, no income taxes, and US income that is visible to the IRS is subject to an $84K foreign earned income allowance (ie tax deduction). Also sun, sea, sand and tourists in bikinis. If you make all your income from the Internet living in the Bahamas is a good idea. Sadly, I'm back in the US now for family and business reasons, and missing the sunshine already.

OK, here's what a tax lawyer friend told me about income tax being voluntary: "Of course income tax is not voluntary. However, if you can convince a jury that you really truly BELIEVE that it is voluntary, then you won't be sent to jail for tax fraud, you'll just have to pay the back taxes and penalties and legal fees."

There have been people who have fought the constitutionality of having an income tax and won. There are also those who did it and lost and were sentenced to YEARS in prison. You're putting your life in the hands of a jury of peers that in all likelihood pays income tax themselves.

Could just be a difference of definition but 'tax avoidance' generally means using legal means to lower your tax bill. Tax evasion is is illegal and criminal.In between the two is the gray area where you take your chances.

As far as the 'don't have to pay taxes on income types' they'll always end up paying dearly in the end. If you are a high profile person (famous, no tax seminars, no tax books, etc.) you will be dealt with publicly and pay in the end.

Irwin Schiff was the last one I remember, who ever happens to be the next no tax crusader will end up the same way. The stakes are way to high to have it end any other way.

May years ago, when I first started online I didn't expect to make as much as I did my first 6 months. I owed more than 10k in taxes that year because I wasn't incorporated. I incorporated and I literally cut my taxes in half overnight without doing anything other than incorporating.

A corp is the way to go, though if you keep up with your quarterly estimated taxes you can manage everything pretty easy. You may/probably will owe some when you file, but it will be way less if you are making payments quarterly.

However, if you want to pay less in the end, incorporate or at least get a dba/fbn going so you can have payments made to you in the biz name.

Also you may want to check with your local city/county to see about any additional taxes for doing business in your area and if any certificates/licenses are needed to operate.

If you are not making a huge amount (under 100-110K per year) then you can still take home a nice chunk of change with just a dba/fbn. It will all depend on your total take home and how much of the accounting/financial aspects you can manage yourself. Oh and let's not forget about what state you live in can have an effect on your business taxes as well.