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Taxes... Can I avoid them ?

Discussion in 'Business & Tax Advice' started by ttub44, May 11, 2016.

  1. ttub44

    ttub44 Registered Member

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    I'm on the verge of releasing a training program I've been working on for the last 5 years. I'll be doing webinars etc and in the end receiving money via paypal or another source like stripe, 1 shopping cart etc. Now, I'm not exactly sure what to expect in the form of (income) from this activity, but to be safe I'm going to make a safe guess of from $100k-$400k. I hear if you register as an LLC you can be exempt from a lot of your taxes. But is that possible with a payment processor like paypal that sends 1099's. Uncle Sam has been an abusive realtive for much too long, and loopholes in beating the system would help me in my journey

    Ps-=is there a better place to post this on the forums, that I'll be able to get more help ?
     
    Last edited: May 11, 2016
  2. Conor

    Conor Elite Member

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    Just pay your taxes dude. You're going looking for trouble if you try to act all sneaky about it.
     
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  3. ttub44

    ttub44 Registered Member

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    I guess I'm not looking to commit a crime, I didn't really make my intentions clear. So I edited the post
     
  4. Capo Dei Capi

    Capo Dei Capi BANNED BANNED

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    If you're willing to move you could look into the US Virgin Islands and see if you will be eligible for the 90% tax reduction there.
     
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  5. davids355

    davids355 Jr. VIP Jr. VIP

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    Get a good accountant then you pay as least as possible without breaking the law. If you have such a good business plan why compromise it by taking unnecessary risks?
     
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  6. Capo Dei Capi

    Capo Dei Capi BANNED BANNED

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    Accountants aren't needed unless you are doing overtly complicated activities, software can take care of it for most small businesses these days.
     
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  7. kekmaw

    kekmaw Jr. VIP Jr. VIP

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    I'm not from the US but I've done a fair bit of research on the subject and this is what I would do based on what I know without contacting any specialist to dig deeper in to this.

    I would register 2 LLC companies in a state like Delaware for good tax reasons.

    You would register Company ONE with the purpose of being your investement company, to increase wealth by investing. This would be your Holding company.

    Now Company TWO would be owned by your Holding company and not you on paper.

    The benefit of having a holding company is that instead of you paying out dividens or sallery which you would have to pay tax on, you can give dividens to yout holding company and invest that money without paying tax on them because they are being invested in stocks, land, houses or whatever way you would want to invest your money. By doing this you increase your wealth because you can use that money and invest in without paying tax. This is also how you can buy a $150K house with your investement company because it's a good investment, then rent it out to yourself etc. Now you have a home that you bought with untaxed money. The list is long.

    This is the basics, there are obviously more to it.
     
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  8. k3nd0

    k3nd0 Newbie

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    Tax planning is different depending where you live obviously, so I think this is the best advice... (EDIT: sorry I thought this would quote the one I replied to -- Davids355)

    Generally speaking as long as the profits stay inside a company, they are taxed at a much lower corporate tax rate (when compared to personal tax rates). Then you can withdraw the money slower from the company, or have the company pay your reasonable expenses. But Davids355 is right, just get a good accountant and cover your arse.

    I'm in Canada and corporate income tax is sub-15%, where as personal is anywhere from 25-50%. Best to shelter it at a lower rate inside the company until you can take it out slower or as company expenses.
     
  9. ttub44

    ttub44 Registered Member

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    Dude!!! I never even thought of that! You should start a thread based of that knowledge, it would go viral! I actually am running an educational company so that would work perfectly. I might have to take advantage of it. Thank you so much!!
     
  10. ttub44

    ttub44 Registered Member

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    I actually forgot about business expenses and the deductions you can receive from them. I actually own another LLC thats established (services, website, products etc) in the educational industry. What I think I'm going to do is make my program a product of the educational business, and then I can use the taxes to pay for (advertising, website/product development, seo, and marketing), which is what I would have used the earnings from this training for anyways, therefore allowing me to technically get it for free because the money would technically be no existent due to it "having" to go towards taxes, now I can grow another company from it!
     
  11. kekmaw

    kekmaw Jr. VIP Jr. VIP

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    Glad to help, good luck!
     
  12. Anonymously

    Anonymously Jr. VIP Jr. VIP

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    Congratulation, OP. NSA has found your real IP and you are now being monitored.
     
  13. MLworkonline

    MLworkonline Registered Member

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    no. pay your taxes.

    there are all sorts of legal shenanigans like what kekmaw outlined(using a holding company) that can massively lower your tax exposure.

    depending on how your business expands and how things work out in the EU regarding paying or collecting VAT on products purchased by eu citizens (trust me, the legislation will come at some point and the wild west days will be over), you could do such things as have your delaware based LLC open one in bulgaria (10% flat tax) for about 1000euro (the 1000euro one includes EU residence permit which can be nice depending on how you've set up your LLC structures). of course you pay your bulgarian taxes and then funnel the funds to your investment llc. buy a property or 2 in europe and your european holidays become business expenses.

    rinse and repeat with asia, etc.

    always, always pay your taxes though. especially if you are an american. the IRS is probably the most feared and hated and persistant tax authority on the planet. being a US citizen also makes it more difficult opening companies and accounts overseas as many companies and banks would rather not jump through the 30,000 hoops to have you as a customer. (one example being americans in switzerland....good luck opening a bank account or getting a loan)

    if you want or need to set up some kind of tax structure, get off the fucking internet and talk to someone who actually knows the field (corporate tax law, international corporate tax advisor, corporate accountant). and remember, the dude you get to do your personal taxes probably isnt going to be so much help. this is something you want to be airtight as even accidently fucking up your taxes lands you in jail with the "criminal proceeds" being confiscated.
     
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  14. Grozzy

    Grozzy Newbie

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    Not worth it, pay taxes.
     
  15. Dan21

    Dan21 Registered Member

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    If you are really smart about it, off-shore companies is the solution. I have the experience and have done this previously for my businesses, I get taxed anywhere between 0%-10%
     
  16. Sindragosa

    Sindragosa Regular Member

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    Tell me more, please make a thread about this.