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  1. #1
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    Running US based hosting company

    Have anyone here had any success in running a USA based web hosting business being a non-resident of USA?

    I have seen many website offering the service for US company incorporation, mail forwarding etc but i am not ready to sign up before hearing a success story.

    If anyone was able run a company without any problem, please share your experience here.

  2. #2
    Are you talking about a foreign company with US-based servers or US registered company operating from abroad? Much more complicated with the latter.
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  3. #3
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    Why do you want to run your company as an US-based company when you are not living there?
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  4. #4
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    US registered company operating from abroad.
    @cycomholdings

    1) I am looking to relocate to USA in future
    2) Better access to payment gateway and stuff. I am from India, even paypal is giving a lot of trouble and limiting the amount of funds that can be sent in a given month. It would be easier with a USA based company.

  5. #5
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    You will need to make sure first that you will be able to open a bank account for the company without travelling to the US.
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  6. #6
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    I have contacted a bank whom i can open an account by mailing documents and verifying the signature from a US embassy. So bank account shouldn't be a problem. TAX, legal matters etc is what i am worried. A legal adviser contact would be useful to me.

  7. #7
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    Cumbernauld, Scotland, UK
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    There is a distinct difference between running a business based and operational in the USA, and one that is operated within the USA but the operation is outside the USA

    My business attracts customers from outside the UK, but I remain liable for all taxes in the UK only

    It really depends on the legal status of the business and how it is operated
    If the office is in the USA, operated by a single owner resident in the USA, then that is easy enough
    However, if the office is in the USA, customers are in the USA, but the single owner is resident outside the USA then business multiplicity may apply
    As a result local businesses taxes (USA) may apply, as well as local income tax (outside the USA)
    In some cases this may result in double taxation

    Next is if it is an actual company
    This greatly simplifies the matter, as the business is then liable in the country in which it has its offices and trades
    The owners would then remain liable to taxation in their own country (again, this may result in double taxation)
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  8. #8
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    What I have read is after 9/11 it has become quite difficult though not impossible.

    Also since you will have equipments in USA, clients in USA and will be paying in USA for servers etc., I may be wrong but you will be required to pay tax as any other company in USA, and you will be paying tax here in India too on your income if you are bringing money here.
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  9. #9
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    Quote Originally Posted by Vinayak_Sharma View Post
    What I have read is after 9/11 it has become quite difficult though not impossible
    It is not really any different, it is just some additional new rules, regulations, and laws to prevent money laundering, etc., all under the pretence of anti-terrorism

    The best solution, as I have found, is to have an office-address lease through a small county lawyer
    They then forward all postal mail they receive by email, which is cheaper than receiving it in your own country by post (as well as quicker)
    You can then instruct them to post it, if required, typically if you need to complete and sign a form
    The annual cost is currently $165 and is more professional looking than a Mail Box number, as it is my business name and their address

    The biggest farce I found was having to register the business in the USA, something we do not have to do in the UK
    However as I am resident in the UK, I am liable for county sales tax, but not for federal taxes (income tax as we call this in the UK)
    Last edited by m8internet; 03-05-2011 at 03:30 PM.
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  10. #10
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    Sep 2009
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    *

    I would think that if you were in India that you'd run your business there. I would if I lived in a country with huge growth potential. Web hosting in the US is like Starbucks. One on every corner and sometimes two! :-) But don't let that stop you.
    DJ Smith
    GreenHostUSA
    Boise, ID

  11. #11
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    Quote Originally Posted by Vinayak_Sharma View Post
    What I have read is after 9/11 it has become quite difficult though not impossible.

    Also since you will have equipments in USA, clients in USA and will be paying in USA for servers etc., I may be wrong but you will be required to pay tax as any other company in USA, and you will be paying tax here in India too on your income if you are bringing money here.
    Incorporating isn't much easier. All i have to give them is a scanned copy of Passport or another ID and then give my details. Thats it. They can complete the filing in less than 24 hrs.

    Bank account is also possible to open from outside USA. So paying tax, finding proper legal advice should be the difficult tasks.


    I have a quite a number of customers and most of them from USA and Canada. If i have a company in USA, i would be liable only to pay income tax for the money I bring to India.

    @m8internet, you are having a USA company too apart from UK company?

  12. #12
    Join Date
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    Quote Originally Posted by chennaihomie View Post
    @m8internet, you are having a USA company too apart from UK company?
    Yes, but it forms part of another company I am involved in
    This other company has its main office in the UK, with branches in USA, Canada, and Thailand
    Each of these companies is run separately, but owned by the holding company
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