6 Steps to Starting Your Location Independent Business

Gary Vaynerchuk has said that “we are living in the best era
of all time.”

I honestly believe that it is now easier to start a business
or create a side hustle thanks to the internet. The internet does not care what color you are, what nationality you are,
how tall or short you are etc. Clients only want to know whether or not, you
can deliver on your value proposition.

Unfortunately, starting up in one thing but being successful
is another. Part of being successful is
understanding the rules of tax and business structures. These are things that are not taught in
business school. Worse yet,
entrepreneurs look for advice from unqualified and frankly dangerous keyboard
warriors who mislead and misunderstand the nuances of international business
rules.



That’s where teams like ours come in. We are a network of firms. We have 30 physical offices in 11
countries. Visit us on –

https://www.mooresrowland.tax/ 

http://www.htj.tax

http://mooresrowland-asiapac.com/ 

Connect with me on :  http://uk.linkedin.com/pub/derren-joseph-ea/2/533/34


Step 1 –

Find a team. It’s incredibly
naïve to think one person sitting alone knows everything and has the bandwidth to
keep up with the constantly evolving legal landscape. Read more here – https://www.mooresrowland.tax/2018/02/5-things-to-consider-in-choosing-right.html

Step 2-

If this is to be your main source of income? Start a company. In most jurisdictions, despite the higher
compliance cost, the tax advantages of running your business through a company
make it worthwhile. No one size fits all
and your specific circumstances drive the best jurisdictions. Sit with your team and determine the best
jurisdiction for your LLC. For
many it would be a  US LLC – https://www.mooresrowland.tax/2018/12/the-pros-and-cons-of-llcs.html


Step 3 –

Ensure you have a plan. Where are you going to be based? Even
if you will physically be constantly moving? You NEED to be tax resident somewhere. Sit with your team and choose the right jurisdiction. Careful with those dangerous people who sell dreams
of being tax resident nowhere as a perpetual nomad –

https://www.mooresrowland.tax/2019/10/perpetual-nomad-is-it-possible-to-pay.html

Step 4 –

Now that you have your personal tax residency and your
corporate tax residency (which, thanks to flag theory can be different places

https://www.mooresrowland.tax/2019/05/flag-theory-aka-perpetual-traveler.html

You need to register for taxation. And consider your structure to be like a car,
it needs to be serviced regularly. So
that’s why you have a team (step 1) because as your circumstances change and the
rules of these countries change, so do you need to update your structure.

Step 5 –

In terms of taxes, you have both direct and indirect taxes. 

Direct tax would be income tax for both yourself (personal
tax rates) and your company (corporate tax rates).

Here are some articles – 

https://www.mooresrowland.tax/2019/03/foreign-businesses-permanent.html

https://www.mooresrowland.tax/2018/04/tax-responsibilities-of-digital-nomads.html

https://www.mooresrowland.tax/2018/03/non-us-digital-nomads-working-for.html

https://www.mooresrowland.tax/2017/03/if-im-not-american-and-i-sell-stuff.html

https://www.mooresrowland.tax/2015/06/e-commerce-and-taxation.html

https://www.mooresrowland.tax/2019/04/snapshot-of-asean-tax-rates.html

Indirect taxes would be sales tax, use tax, VAT, GST
etc. These are very very nuanced –

Here’s where you definitely need software or a tax team (if
you’re a 6, 7 or 8 figure seller). In
the US alone there are 10,000 sales and use tax jurisdictions. In the UK, you need to be planning for pre
and post Brexit. This space is evolving rapidly.


Step 6 –

Don’t get caught up in trends. Popularity doesn’t mean tax efficiency. 

Let’s touch on a few of them –

  • Yes Bulgaria is 10% but its 10% on your WORLDWIDE
    income. Hong Kong is 16.5% on territorial
    income and Singapore can be 0% for a non resident company. Discuss this with your team. 16.5% on territorial income can be way better
    than 10% on worldwide income

  • Be careful of so called tax havens. Many banks won’t touch them. So it’s useless having a company without a bank
    account for it

So that’s it. 6 key
steps to starting your business online

Good luck

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