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Tax Advice - Enlighten me my dear BHW friends it's urgent!

Discussion in 'Business & Tax Advice' started by Blakester, Jun 5, 2013.

  1. Blakester

    Blakester Jr. VIP Jr. VIP

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    Hello everybody! :)
    I'll get right to the point...

    I live in a country that now laws are becoming stricter (European Poor country).
    Even if a friend puts some money to my visa card just to order him a new pc they ask me where I found the money.

    Here's is my main problem..

    I make money using paypal and clickbank.
    I provide services, sell tutorials (ebooks and videos about music production).

    I also submitted a W8-ben with my name on Clickbank.

    My main problem is that I went and asked a "professional" (pro my ass he didnt know what paypal is) and he said
    that "you must register your services as Individual Business and doing that I have the rights to sell as a businessman and pay my expenses monthly/yearly or else it's dirty money".

    and... "bank accounts are watched, if they ask you where did you find the money and you say you provide services then they'll tell you, why didnt you register your name"

    But I am not in that phase to consider myself a full time marketer and what If my services stop working?
    My fear is that registering this kind of business will make me pay more that I earn.

    So I have a couple questions (pardon me if they sound stupid but I am not the best with all this tax sh1t)

    * Does paypal charge me more for my tax duties instead of its own benefit? I mean do I pay in each transaction my taxes too, except from paypal's services?
    * Clickbank accepted the w8-ben form long ago should I have problem?
    * The current bank account I use now is registered with my name, my fathers and also my mothers name. He told me to create a new one or they will have a problem
    if I can't prove where i found the money.
    * If I make a sh1tload of money do I need to register a business name as a sole businessman? What if I do it and then I will keep paying for something that will go down?
    * If I earn money from USA and I am in EU does it matter? I make money from clickbank as I said.

    Hope you help me cause I lost my main offline job and I wasn't ready for full IM.
    And even if I was internet marketing is full of challenges. I can't register a business and pay monthly something that I am not sure that will make me money (as I said I consider myself noob - maybe i am not but still cant rely full time on IM yet)

    thanks and take care
     
  2. 2011nfl

    2011nfl Supreme Member

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    If you were in the U.S. I could help you, but since you are not, all I can do is hope that you get the advise you need... I have heard about how strict it has gotten over there though.
     
  3. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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    As you sound a little concerned, I think it is best if you seek professional tax and legal advice from somebody based in your country. It will probably be expensive but at least it will put your mind at ease.
    If you aren't earning a great deal then I would just try to hide it (avoid AND evade) then plead ignorance if caught, although ignorance of the law can't be used in your defense if things become serious.
     
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  4. Blakester

    Blakester Jr. VIP Jr. VIP

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    Np Nfl really appreciate it though.

    Well yeah I am getting crazy because I was right at the time to start investing and now the store I worked closed.
    And I can't find an another offline job. Not because I am lazy or for not liking the job (I cant have high standards with this situation of my country) but because it's really hell here, there are no jobs, they don't even need anybody for some simple stuff.

    My only solution is to work more Online but what if I am illlegal? I want to work and I can't I mean come on... :/

    Members that provide services here via paypal are they registered?
    It depends on the income right?

    P.S: Sorry for being weird but I hope you can understand my situation.
    I am willing to work as an outsourcer for anybody and provide some services but I cant even do that ffs
     
  5. xtopzi

    xtopzi Regular Member

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    Don't know about other countries but over here you can learn about taxes from our taxes institution and the chamber of commerce.

    Its also not very expensive to register a business or open a business bank account. That's why I don't understand your concern for "paying more than I make". You pay tax over what you make.
     
  6. Blakester

    Blakester Jr. VIP Jr. VIP

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    Thanks for the answer but as I mentioned he was like... "what is paypal?"

    I have a feeling that I will put myself to trouble if I speak.

    Would someone mind telling me how things work in USA?
    I mean if for example you sell an SEO service and you get paid via paypal... do you need to have a business license?

    thanks everybody
     
  7. okiedokie

    okiedokie Regular Member

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    are you from greece ?
     
  8. 2011nfl

    2011nfl Supreme Member

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    I'm pretty sure tax advisers (even in Europe) will not share your info with the government unless you give them ok. The government is not the one paying them, you are. And I'm not sure if the client confidentiality law is in effect there, but if it is, you should have protection there as well
     
  9. saifkhatri

    saifkhatri Jr. VIP Jr. VIP

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  10. SkyrocketSEO

    SkyrocketSEO Jr. VIP Jr. VIP Premium Member

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    Just connect your PP with Payoneer , you get Master Card from them with US bank account and you can load your US bank account with cash, take the money straight from ATM (I did that last week and it feels great) in your country and shop using your Payoneer MasterCard wherever you want (supermarket, gas station etc...).All this with your USA Master Card account and since you're not a resident of USA you don't pay any taxes.

    Thank god I live in a normal country where you don't have to pay taxes for online income:)
     
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    Last edited: Jun 5, 2013
  11. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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  12. Blakester

    Blakester Jr. VIP Jr. VIP

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    No not a single one. I provide quality but I stopped everything just to make sure I won't have any trouble.
     
  13. Blakester

    Blakester Jr. VIP Jr. VIP

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    Will definitely look into that, thanks a bunch.

    EDIT: Gotta leave rep when I am on my pc.
     
    Last edited: Jun 6, 2013
  14. blotted

    blotted Newbie

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    2011nfl, I'm not sure how well versed you are on LLCs and the different capabilities they have with their tax structure election options, but maybe you can point something out to me.

    I own an LLC in WY, and that LLC wholly owns another LLC in WY. The Parent is a ventures company which is used to invest into opportunities and form other entities within its umbrella. What would you consider to be the best taxation structure?

    I've also considered electing the Parent as C-Corp, and the Operating as either a pass-through or S-Corp. But I heard you can't elect S-Corp if it's an entity, and it should have an individual owner. In that case, I had considered becoming a member at 1% ownership and the Parent 99%, in hopes that could qualify the Operating company to elect S... but then, is it even worth it? What do you think? I figured I want the income from the Operating to pass-through either way to Parent. I don't want the Parent to pass-through to me. I will take distributions/loans, and maybe a small salary.

    Take Care,
    Blotted
     
  15. madoctopus

    madoctopus Supreme Member

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    Unless your country does not tax worldwide income (unlikely) what you do is called tax evasion and is illegal. Whether they catch you or not is another aspect.

    To be able to legally receive money you need to be incorporated either as a juridical entity (e.g. LTD company) or as a natural person/self-employed. Each has pros and cons. Generally taxes for an LTD go a bit higher. Depending where you live and how much money you make you could have to pay taxes anything between 20% and 60% or maybe even higher if you earn a lot of money. To find out exactly simply read your country's commercial code/tax code/etc or ask a lawyer and/or accountant or even your local IRS.

    Lawyers don't know about PayPal/ClickBank/Payoneer or whatever because they don't need to. That's not a special case where you don't pay taxes. You still have to pay taxes and you still have to incorporate. Depending on the specific laws of your country, if you do not have stable income (monthly for most part of a year) you might be able to just file all the extra income at the end of the year as "additional income" using a tax for for this. That might get you off with a lower tax.

    While running an online business is pretty easy from the accounting perspective, once you incorporate and have to keep the books will quickly become a nightmare. The beaurocracy in many countries when it comes to taxes, accounting and all this stuff is amazing. While at the first look to cash money from AdSense for example would be just a matter of making an AdSense account and making money with it, to be legal if you're in EU you must enrol for a EU VAT number (because they do reverse VAT taxation). If you don't and you cash money from Google Ireland Ltd you may simply be breaking the law. In the case of direct clients you must probably charge them VAT if you're a VAT enrolled company (above a certain amount of revenue/year you are forced to). Networks from outside EU (e.g. USA) you don't have to do anything special about VAT as far as I know.

    I am not a lawyer or accountant so all that I told you is stuff I kinda know. I'm not a specialist in this even less for your country which I have no idea which country that is. Just go and talk to a lawyer specialized in tax/fiscal stuff. Don't expect him to understand the whole PayPal ad online biz stuff without explaining it 20 times. Is not very important either because it will simply come down to having to incorporate in a certain form. You just have to figure out which form is best for you and learn what obligations you have.

    The other option is to incorporate in a tax heaven. This can cost you a few thousand USD depending on where you incorporate. Also you can only be payed by wire transfer because is extremely difficult to open a PayPal for an offshore setup. Basically with an offshore you'd have the company in Belize for example and the bank account in Cyprus or whatever. Because thy're noth both in same country you can't start a PayPal or AdSense. You could incorporate in Hong Kong and also get a bank account in Hong Kong and that would work but for that you have to fly over to HK to open the bank account because they don't do it over the internet with you just mailing over the paperwork as they do it in other countries. Also, while this would give you a legal entity that is not under the control of your country's taxes and government, it does not eliminate the problems you get, it just gives you a different kind of problems you have to manage.

    Good luck.