Re: Preventing WHOIS



Torbjörn Svensson Diaz <tobito85@xxxxxxxxx> wrote in news:da7bd7e2-1c8f-
4d36-b980-19ab4c31c8ec@xxxxxxxxxxxxxxxxxxxxxxxxxxx:

On Feb 25, 9:41 pm, "nemo_outis" <a...@xxxxxxx> wrote:

PS There are no New Mexico taxes either as long as the LLC does no
business in the state (which is the usual case for what I've
described).

If I have a site making money from comissions of affiliates programs,
where is it considered having made its money? In the jurisdiction of
the server? In the jurisdiction of wherever the corporation is
incorporated? I'm just curious?

When using things like corporate vehicles (LLCs, companies,
proprietorships, etc.) you must be very clear to keep the various
entities separate and distinct (in your own mind, in terms of their
finances, etc.)

You (the member) are not the LLC, and neither of them is (necessarily)
the website. You could, for instance, have the website "rent" the use of
the domain name from your LLC for a trivial amount, say $1 (an amount too
small to trigger any taxes). The website could be a separate company
(from the domain-owning LLC). The website company could be the entity
that makes any money. The website company (if you wished) could be
domiciled in Hong Kong (I say this for illustration only).

So, even before you consider "where" you make the money, you must
organize "who" makes the money, as determined by "whom" (i.e., which
governments will be eager to squeeze cash out of you). It would, for
instance, be a bad idea for a NM LLC that owned the domain name to also
make the website income, as I explained earlier about using the LLC for
privacy only. And your lawyer will probably be reluctant to "own" your
company - my suggested alternative to an LLC - if it makes money since
that could expose him to tax responsibilities, litigation, etc. Use the
domain-owner only for privacy.

Now, getting back to your original question of "where" you make the
money, the answer is: It depends.

Sorry to be so vague but it really does depend on the structure of your
contracts, with whom, etc. The usual approach to this problem is to have
any contract specifically say where its "legal home jurisdiction" is.
But it strongly depends on the tax laws of the country in which you set
up the company, the country of the party with whom you've contracted, and
the locations of various customers (if it involves retail sales,
especially with physical delivery in other countries). It also depends
*which* tax we're talking about: income tax, sales tax (VAT), etc.

However, to a first approximation, the place where most of the money will
usually be considered to have been made is the "home jurisdiction" of the
entity (human being, company) involved in the service/goods/contracts
that made the money (or, very commonly, the domicile of the company's
"beneficial owners" - you). That's where & who will pay the income tax.

This assumes you do not have or are not deemed to have "a significant
business presence/establishment" in some other jurisdiction (e.g., a
branch office, lots of advertising in a particular country clearly
targeting its citizens, foreign sales agents, etc.) in which case sales
from that branch office would probably have to pay some local income
taxes. And all this assumes that there aren't any tax treaties between
the various jurisdictions that allow you to set off amounts to avoid
double taxation, etc.

Sales tax can be tricky but is usually based on the customer's location.

In short, if you do business in many locations worldwide, it can get a
bit messy and you may need professional accounting/tax advice.

Regards,


.



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