how to be with taxes for startup online business?

Discussion in 'Accounting and Taxes' started by AlexBF, Sep 3, 2013.

  1. AlexBF

    AlexBF
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    Hello Dear Business Advice Forum Members, I want to startup my small online business, I'm making own graphic novels and comic books and I have a website (hosting and domain I bought from USA GoDaddy) where I want to sell my novels for 0.99 cents each, because they will be only electronic formats like .pdf, .epub files. Payment method will be through Paypal, I had study in United States for couple years as international student, I'm have left USA and went back home I'm living currently in Central Asia. I opened my Paypal account while study years in USA. Our country is Non Paypal country. System is like this, even if people will decide to purchase my comicbooks I'll receive payment to Paypal then I'll send it my friend in USA(trustful person) then he will gonna send me through Western Union or MoneyGram. So, I have a only website no any office in USA, I have a house in my town where I'm living now. Now, my question is how should I have to be with taxing (taxes)? Some friends told me I have to register as a company first but that is expensive and I truly don't know how my comicbooks will be famous and will people gonna buy them? You know how it's competitive market. But I want to try officially and lawfully and don't want to break the law. I need you advices and suggestions dear friends Thank you.
     
  2. Fergal

    Fergal
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    Welcome to Business Advice Forum AlexBF. Your business sounds very exciting and I hope it goes very well for you.

    It would seem to me that you may be subject to tax in the country you live in. Can you please tell us what country that is? Have you contacted your local tax authorities to ask them what the tax implications of your business would be?
     
  3. AlexBF

    AlexBF
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    Hello Dear Sir Fergal, Thank you very much for your response, I'm sorry but I want to keep a seсret my country. Sorry about that. Honestly I don't think I need to pay taxes here since if I'll receive through my money through Money transfer service which will take their fee. Just like how Paypal also taking their fee from every purchase. Many people goes to abroad to work and they send money through Western Union for their family and they don't pay taxes. Plus here if I will go to tax authorities they will tell me I have to open a business and then pay taxes, if person doing a personal even home business he have to register as a business or company and pay annual taxes even he doesn't get a profit and closing a business also little painful job too. I know people who opened business for $1000 but they failed and they paid $5000 to close the business. So, honestly I don't want to experience that.
     
  4. Manish Vats

    Manish Vats
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    In Which country you are living? you just mentioned you are living in (Central Asia).

    Have you asked with Courier Agency who is providing the services worldwide?

    One more question i want ask you here. Can i see your website? and in which country you are targeting your business?

     
  5. Business Attorney

    Business Attorney
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    Where income is taxed is a complicated question. Allocations and apportionment of income among various taxing jurisdictions is a question for a tax professional, not a forum. It doesn't sound like there is much contact with the United States but whether using a U.S. hosting company and server to store and deliver your electronic products and receiving payment in the United States is enough to treat the sales as U.S. sales is a close question, particularly if the buyers also happen to be U.S. residents who download the eBooks to a U.S. IP address.
     
  6. AlexBF

    AlexBF
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    Yes Sir, I'm totally agree with you and my target audience is USA and Canada mostly, then China but not my country where I live because there is no e-commerce things available, no online payments and so on :)
     
  7. AlexBF

    AlexBF
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    Hello Dear Sir Manish, Thank you for your message countries name is Uzbekistan. Website is currently under developments and I didn't launched yet, and my target is USA, CANADA and China because there PayPal is common and native. I honestly don't know about Courier Agency I never heard about them.
     
  8. AlexBF

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    Dear Professionals I can at least save %8 (which is average tax rate and sales tax rate in the state Missouri where I studied it's actually 7 and something percent) percent from every sellings $0.99 (total price will be still $0.99 together with tax so, original cost will be $0.91) and save on my paypal account then when everything will be clear or if my business will be successful to pay it to proper place?
     
  9. amwarner

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    I'm actually really confused as to why you can't use Paypal. I've done "limited" business with people over in Central Asia and there was always two options to pay. Western Union or Paypal. There's no possibly way to use ANY ecommerce in your country for this business?
     

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