Foreigner wanting to Register an online based business - Where's the best?

[BradenH]

Hi, I mentioned in my intro post that I'm somewhat entrepreneurial and I have an idea for a business but am struggling to get my head around the laws and whats best for foreigners. Any help will be greatly appreciated!!

My situation: I am a New Zealand citizen currently working in and out of the States (based in Florida for majority of the year) on a B1/B2 visa. This job is on a luxury super yacht, paid salary from the Cayman Islands into an offshore account. This will be the funds for my business.

Ok….setting that job aside. I am an idea for an online directory for the luxury yacht industry focused on entertainment activities for yacht crew. Where businesses can register, pay a fee and have their business advertised on a websites focused just at the tens of thousands of yacht crew. This will start in Fort Lauderdale Florida, eventually moving throughout the states and eventually international.

My questions are:
- Where is the best place to register a business like this that is based online, with no 'physical office'?
- and then once registered do I have any limitations on where i can/can't operate/sell advertising to businesses?
- If I were to go international in a few years time, will this business register be affected and limit selling advertising to a business in the like of France for example?
- And finally, the big and ugly word, TAX. This is a tricky one for me. If the company was registered here in the States what are my tax obligations? I (and other investing partners) would only receive dividends from profits, so how would that be taxed? Would that then bring the income from my other job (outside of the US and independent of this business startup) into question due to myself being an owner of an US business?

Or….. Is it best for me to register where I have citizenship in New Zealand? but then, can I operate overseas? ahhh:confused:
Such a confusing issue for me!

Any tips, advice, pointers will be a great help!
Regards
Braden

[Harold Mansfield]

The web is worldwide. There are no "foreigners". One jurisdiction doesn't have more power than another online. You are just as free to start a website or online business as anyone else.
As far as business licensing and taxes go, I'd say the easiest thing for you is to just open the business under the laws of where you are a citizen if that's where you will be living. That doesn't mean that you can't market or target customers worldwide, and you can register any TLD ( Top Level Domain) you want.

From SBA.gov

Foreign business entities are incorporated at the state level in the U.S. The process will vary from state-to-state, but generally involves two steps: applying to register in that particular state, and establishing a registered agent with a valid address in that state (no PO Box numbers). A registered agent can be either the business owner or another person who is authorized to receive legal papers on behalf of the business, such as an attorney or secretary.

Here's the link to that information: Starting a Business in the U.S. as a Foreign National | SBA.gov (http://www.sba.gov/community/blogs/community-blogs/business-law-advisor/starting-business-us-foreign-national)

Here's more information about U.S. taxes and international businesses doing business in the United States:
http://www.irs.gov/Businesses/International-Businesses

Of course I'm no expert. You really should contact a U.S. Business attorney to insure you are complying with the law.

[BradenH]

Thanks Harold for your help. It does make sense registering in New Zealand due to being a citizen there, and already having a tax number. But in the odd chance I don't go back there to live, is US a good place to register? It may be 10 years before I move to New Zealand permanently or it may be two, I'm not sure.
My only thing is I feel being registered here in the states means that it is a strong online market here and therefore won't be seen as 'some small NZ company' when the majority of the focus is here in Florida.

I'm leaning towards Delaware due to its ease and tax, but then am I limited with my work if I operate and sell 'advertising' services and memberships to Florida residents and beyond?

Many thanks for your help, greatly appreciated.
Braden

[Harold Mansfield]

Thanks Harold for your help. It does make sense registering in New Zealand due to being a citizen there, and already having a tax number. But in the odd chance I don't go back there to live, is US a good place to register? It may be 10 years before I move to New Zealand permanently or it may be two, I'm not sure.
My only thing is I feel being registered here in the states means that it is a strong online market here and therefore won't be seen as 'some small NZ company' when the majority of the focus is here in Florida.

I'm leaning towards Delaware due to its ease and tax, but then am I limited with my work if I operate and sell 'advertising' services and memberships to Florida residents and beyond?

Many thanks for your help, greatly appreciated.
Braden

Again, the web is worldwide. Where your physical office is or what state you're registered in has nothing to do with your success. Applying for a business license in The United States is no more of a guarantee of success than licensing where you are a resident.

From what you've described, you're targeting a specific professional demographic, but the actual people are international.

I think you are under some misguided conception that having a business license in The United States is the only way that you can register a .com, or market to Americans and that is simply not true. Furthermore, your online presence doesn't get some kind of boost because of where your business license is. You're going to have to work just as hard as everyone else regardless of what country they are in.

If you want to apply for a business license in the US for tax reasons, or because you'll actually be living here then that makes sense. But on the World Wide Web websites with US business licenses don't get special treatment by Google. We have to compete with the rest of the world just like everyone else.

[billbenson]

I'd register in New Zealand unless there is a tax reason not to do so.

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