Results 1 to 17 of 17

Thread: Tax & Company

  1. #1
    Join Date
    Feb 2004
    Location
    New Zealand
    Posts
    1,202

    Question Tax & Company

    ***************

    I am setting up a ' non-dodgy' host.

    I am able to register a company name here is new zealand , i will be getting customers internationally and locally....

    But i don't think i can register a company in US when i am a NZ Resident .

    Now about Tax , most of the customers are going to be international . With the tax system over here its simply Bullsh*t . What ever funds your earn you have to pay tax . How can i maybe defeat this legally and only pay tax for the local customers?

    Thanks

    Logan

  2. #2
    Join Date
    Mar 2004
    Location
    south america
    Posts
    12

    fellow countryman

    Logan, i am a new zealander as well and the two facts of life are taxes and death.
    Our tax system is alot better than most countries so dont knock anything you dont know about.Also in reading some our your other threads have you really thought about web hosting thoroughly?. Its a big market out there to try compete internationally.Maybe you should stay home and play with your toys a bit more.....

  3. #3
    I'm pretty certain that in most countries you have to pay taxes on all the fund you earn no matter where the funds come from.

  4. #4
    Join Date
    Feb 2004
    Location
    New Zealand
    Posts
    1,202
    Ok , firstly i don't play with toys . I play with money

    We have 2-3 businesses putting funds into the business , we have 2 lawyers , 2 accountants , 2 server admins , 4 helpdesk support staff , 1 account manager , 2 system managers , 4 servers .

    You really think i should go and play with my toys , when i'm managing this webhost?


  5. #5
    Join Date
    Feb 2004
    Location
    New Zealand
    Posts
    1,202
    I had asked the two lawyers but they weren't sure , as it would be hard to tell the tax company every month that we had more customers and were earning more....

    So i was asking peeps round here?

  6. #6
    Join Date
    Aug 2000
    Location
    NYC
    Posts
    6,627
    Originally posted by LoganNZ
    I had asked the two lawyers but they weren't sure
    Well, first off you need new lawyers, and new accountants. You pay those people for their expertise, and if they aren't "sure" they should know how to research the situation and find accurate answers.

    Anyway, there's no way you can legally only pay taxes on the income you make from local customers. "What ever funds your earn you have to pay tax" is pretty much the way it's meant to work, in any country.
    Specializing in SEO and PPC management.

  7. #7
    Join Date
    Feb 2004
    Location
    New Zealand
    Posts
    1,202
    Thanks JayC

  8. #8
    Join Date
    Mar 2004
    Location
    south america
    Posts
    12

    mmm

    well with 3 businesses funding your business,2 lawyers, 2 accountants, 2 server admins, 4 helpdesk support staff, 1 accounts manager, 2 system managers and 4 servers you seem very well prepared.How come in your other thread you are asking about how much to charge, who buys webhosting, any stats available etc.....with so much brain power working with you I thought it would be easy..
    As i said before, go away and play with your toys but before that 'WAKE UP' because you are still dreaming and you will be late for school.

  9. #9
    Join Date
    Jan 2004
    Posts
    7,033

    Re: Tax & Company

    Originally posted by LoganNZ

    With the tax system over here its simply Bullsh*t . What ever funds your earn you have to pay tax . How can i maybe defeat this legally and only pay tax for the local customers?
    well to be honest most if not all countrys charge you on every fund you earn from work bank and so on.

  10. #10
    Join Date
    Feb 2004
    Location
    New Zealand
    Posts
    1,202
    With our tax department they say

    All funds you earn from working , for a business of any type you must pay tax of the funds you earned .

    .....

    Thanx

  11. #11

    Re: Tax & Company

    Originally posted by LoganNZ
    ***************
    But i don't think i can register a company in US when i am a NZ Resident .
    Actually, in the state of Nevada you can register a company and be a foreigner. You don't need to ever set foot in the state.

    You will always have to pay some tax, the difference you can make is cutting that to a minimum.

    You may need a US accountant familiar with international business to help you develope the best tax strategy for your situation.

    I have some tax info in a PDF I can send you, just PM me.

    ! Van
    "Beer is proof that God loves us and wants us to be happy" -- Ben Franklin
    Twice Tied Laces

  12. #12
    Join Date
    May 2004
    Location
    New Zealand
    Posts
    346
    New Zealand Taxes are relatively high in the OECD. Our Inland Revenue Department taxes virtually everything dollar going in and out of the country. They are tough.

  13. #13
    Join Date
    Sep 2002
    Location
    London/Edinburgh
    Posts
    1,131
    Needawebhost.net is closing due to
    certain reasons , if you wish to purchase
    webhosting please go here:
    Heh. Mabye you should have stuck with your toys

    Regards,
    Thomas Currie
    Europhase UK Limited - XEN/OpenVZ UK/US Virtual Private Servers | R1Soft Backups for Web Hosts
    Custom R1Soft Backups | UK/US Web Hosting | UK/US Virtual Private Servers
    99.9% Uptime SLA | Non Overloaded Service | Guaranteed Ram / Resources
    Company: SC345142 VAT: GB-947754180 Tel: 0870 4710 895

  14. #14
    Join Date
    May 2004
    Location
    Lynbrook, New York
    Posts
    187
    Agreed vantastic.

    Nevada is one of the easiest state to be incorporated in. The problem is, if you were to have a company lawsuit against you, you would need to be tried in Nevada I believe.

    In anycase, income tax is just that, income tax.
    We have to pay tax on EVERYTHING we make. Yeah at the end of the year, we get returns, but it doesn't mean we initally paid for them.

    There are a few hosting companies who don't pay taxes and I would love to see what happens when the IRS comes knockin on their door.
    Sang P. Ma
    President/VizHost.Com, Inc.
    http://www.vizhost.com

  15. #15
    Join Date
    Mar 2004
    Posts
    1,301
    What about Delaware? Many companies incorporate over there too, ive seen some sites which register foregin companies, they have Delaware Incorporation. Can anyone comment on this?

    And yes everyone should pay taxes, it will be unethical if someone didnt. The money is used by government to provide us the many public services. Anyhow ill shutup now and wait for someone answer me
    "Web Hosting is not just about selling space, it is about facilitating customers needs with your plans and supporting the customer for a long lasting mutually beneficial relationship."- Yaser

  16. #16
    Join Date
    Mar 2003
    Location
    Duluth MN
    Posts
    3,864
    In the states, it gets really tricky with taxes. I know that for any INCOME earned gets taxed by Income tax. Then, depending on the state, products and services rendered to people within your state get a Sales & Services Tax. And then you may get an extra percentage added on for a City Sales & Services Tax.

    For example, in Minnesota, there is a 6.5% sales tax, there is no services tax, so I dont need to charge tax on my webhosting, even to minnesota residents. However, Duluth, which is where I live, has a 1.5% sales and service tax, so I do need to charge a 1.5% tax on services rendered to people in Duluth. I still pay income tax to both the state and federal governments. And since I am an LLC, rather than just "Self Employed" I get some tax breaks, and I can avoid the dreaded "Self Employment Tax" where they basically double tax you for social security.

    I am thinking of re-filing as a C-Corp to get more tax breaks, and have an easier way of handling ownership. I can bring my sysadmin in as a part owner, but still retain full control of the business by issuing him shares of stock.

  17. #17
    Join Date
    Aug 2000
    Location
    NYC
    Posts
    6,627
    Originally posted by Yaser
    What about Delaware? Many companies incorporate over there too, ive seen some sites which register foregin companies, they have Delaware Incorporation. Can anyone comment on this?
    Yep... already have: http://www.webhostingtalk.com/showth...hreadid=272204

    Fourth post.
    Specializing in SEO and PPC management.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •