5 Things to Consider Before Finding a “Tax Haven” for Your Business
If you’re looking for a tax haven for your business, you should first assess how big your company is. In other words, review your books to determine exactly how much revenue your company is bringing in. If you’re a start-up, chances are the expenses alone might eat that up, but unless you’re bringing in a couple million annually, you really needn’t concern yourself with such matters just yet. On the other hand, if you are, then it’s highly recommended to hire a tax relief firm that has an experienced staff of tax professionals from different backgrounds in the industry to handle any tax issue your company might have.
- Consider where your income is coming from.
If you’re running a large business and receiving income from more than one state, you’ll quickly find that things can get complicated pretty quick. There might be an issue as to which state collects the taxes. If you’re not on top of your books, you might have to pay taxes for every dollar you make on every state your company is doing business. This can whittle down your profits significantly. You need to be smart about where your receiving your income because each state law differs when it comes to taxes. You might want to consult a tax lawyer for this kind of information.
- Exactly where in the world is your business receiving income?
If you think receiving income from another state can get complicated, think about if you’re doing business overseas! Now, you have to consider international tax laws along with the converting of the United States (US) dollar and how that all comes in to play with your business’ revenue and tax obligations. It’s a lot of work!
- Think about the place of incorporation and operation.
Where your business is incorporated and where it’s actually operating makes a difference in how your taxes are calculated. For instance, if your business is incorporated in another country, it’s expected of you to have an office and actual people working there. Many businesses file in Delaware because it’s cheaper, but may have offices elsewhere. As a result, these businesses will set up a working office in Delaware so that it’s all legal.
- Consider the cost of paperwork and accounting costs.
If you think filing personal taxes can be cumbersome, then wait until you start filing taxes for your business! What’s more, if you’re trying to find a nice tax haven that’s legit, then it can get even more complicated. You’ll need to understand the tax laws pertaining to every state and country your company is in, whether it’s working as an operation, incorporation, or an overseas entity. Whatever it is, a trail of paperwork needs to traced back to how money was made, where it was received, and how it was exchanged.
You’ll also need to meet domestic and foreign tax stipulations. So, what that means for you is a ton of paperwork that you cannot afford to have one error in, less you end up paying an extreme amount of fines.
Taking it All In
It’s a lot to take in. We know! If you want more information about finding a good tax haven have for your business, ask Success Tax Relief your questions on our online form here. You can also call us directly at 1-877-825-1179 today.