Best country to host a huge database and to pay low taxe?
I have company based in EU (Hungary) and been running a new social network website for a year ,sorry but i would like to keep some privacy about this the name of the site...currently have between 350000 to 500000 unique visitors every month and eating a lot of bandwidth due to streamming,most of our traffic is from USA, Singapore and the middle east.
So am looking to relocate Hosting place and even my company, because i cannot live in hungary anymore due to so HEAVY TAXATION!! And i would like to live from that site
Anyone have some experience and suggestion? Thanks for your help!!
Thanks in Advanced!
Last edited by mondialmanu; 08-27-2009 at 04:27 PM.
You can move to the Caribbean and make a LLC in Delaware, you don't pay taxes in the USA for a foreign source of income (being where you live/work the source) and you'll pay only local taxes from the place on where you live.
Careful there. AFAIK Youtube still isn't making a profit. Video is still quite expensive. Make sure your business makes sense now, and in the long run, and remove, charge for, or otherwise limit the parts that don't make sense.
I don't think that the server location has much to do with the taxation. When it comes to paying taxes it counts where the place where the business is incorporated, and the place where you receive your money... The tax rate is also not that important as percentage, as far as you can claim expenses. Delaware is not tax heaven as someone suggested above. You pay all federal and income taxes and only the state tax is a flat fee.
If you really need to register in any country where the corporate tax is low, this would be Singapore, but if you do not live there or plan to live there, it does not make sense.
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In the UK it makes no difference where your servers are, your still liable for uk tax. I would imagine that would be the same in most countries.
I would say the US is one of the cheapest for bandwidth.
Tax in the UK is different depending on what type of business form it is.
Soletrader is tiered, depending on how much money you have taken, it's the same rate as income tax, which I think is 23% & 40% plus national insurance.
Limited Company you have to pay corporation tax. Plus the directors will have to pay income tax/ni on any wages etc that they take.
Plus which ever business model you have if your total takings exceed a certain amount per year(£68000 I think), you have to register and charge VAT for UK and EU customers.
Last edited by EU Hosting Talk; 09-07-2009 at 01:55 PM.
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HostColor: (disclaimer: this is not legal advice, the interested should contact their lawyer and CPA) if he incorporates in Delaware (or whichever state else) as a single-member LLC, the responsibility of the federal income tax falls on the owner's personal income tax instead of the LLC's tax. - http://www.irs.gov/businesses/small/...158625,00.html
In the US, the federal income tax may not apply if the person doesn't live in the US for more than x days a year, depending on the _source_ of his revenue (it is revenue from US persons or from foreign persons?).