Webserver Hosting Country

[kns]

If my company was incorporated in the US and I plan to host my website in a different country outside US, i.e, business transactions taking place outside the US - is there a tax-exempt law in such a scenario?

[vangogh]

I'm not sure what the tax implications would be, but there could be some search engine traffic implications. General advice is to host in the country where your market is. It's one possible signal used in ranking.

Is there a reason you want to host outside the US? There are a lot of reliable hosting companies here that offer a good price.

Hosting is probably going to be a pretty small expense for your business and you would be writing it off as an expense no matter where your site is hosted. Again I don't really know the tax implications, but I can't imagine we're talking about a lot of money one way or the other.

[SteveC]

There is no tax exception... no matter where you website is located you need to pay taxes on where you live and where your company is located, depending upon your business structure.... you cannot get out of paying taxes.

[Evan]

Using the internet to host your website on an international server doesn't change where your doing business -- here in the United States. Plus, if you lived in Texas and sold an item to another resident of Texas, you're also obligated to withhold sales tax.

So in essence, the location of where your web site is hosted is irrelevant. You're still conducting business within the United States and are subject to taxation.

And if you're looking for a legal aspect, such as conducting a business legal in XYZ Nation, but illegal here in the USA, you would still be subject to prosecution here in the United States. The fact that it's hosted elsewhere is also irrelevant.

[kns]

Thanks for the heads up guys! Evan no problem.....I can assure you no illegal games to be played here :) Just a guy trying to make some money....

[Evan]

I was just using that as an example, not as an implication of anything illegal. Good luck with your business. And if you're wondering how to choose an accountant or tax preparer for your business, see this post here: http://www.small-business-forum.net/accounting-taxes/347-choosing-accountant-tax-preparer.html

[kns]

Thanks for the link Evan. That is some very valuable information.