Phil-Am website business startup

[slang]

Hey Everybody,


Could someone help me with some information?

I'm currently in the Philippines working on various unproductive this and that projects. Last week while talking with a local here we came up with a cool internet business idea that seems to have potential.

The business would be owned by myself and my Philippine partner 50-50. How can I register a small business in the US and have my partner listed as half owner of this business, him not being there or even a citizen of the US?

This website would only be doing business in the US ( to begin with ). The cash would go into the company account, then the profits monthly would be disbursed into both our paypal accounts.

How can this arrangement be set up so that my partner doesn't pay American taxes or would that be impossible? Is there a way to pay one country's taxes and not both?

Thanks in advance for your help.

[lumberjim]

oh good.. you're still alive.

[slang]

Yah, thanks for your concern.

Not a lot of luck with anything productive here since the typhoons but this idea might be different.

[lumberjim]

jinx and i were worried

[slang]

Gee, thanks. I didn't know you cared.

Not a lot going on lately. We're still without water on the farm lot. The storms killed the reservior and no one seems to want to fix them until after the May election. That's too big of a project for us to do on our own.

On the upside, the weather has been great and my liver has not completely shut down ( yet ).

This little project may just be enough to keep me here as long as I'd like to stay. Legal moral ethical and top secret so far but as the details come together I'll explain the whole deal (need to know basis ).

So the big question is.... how do I set all this up without coming back to the US?

[Griff]

Originally Posted by lumberjim

oh good.. you're still alive.

what he said

Originally Posted by slang

So the big question is.... how do I set all this up without coming back to the US?

I have no idea...

[glatt]

I have no idea slang, but I'm also glad to hear you are well. I wasn't up at night worrying about you, but I hoped that you were doing OK after the storms. Your storm damage photos were pretty wild.

I would assume that any business located in the US would have to pay taxes in the US, and then when the profits are taken by your partner back into the Philippines, he would have to pay whatever taxes they have there. But I don't know that for a fact.

You might be able to get away with only a US accountant helping you set this up, or you might need an actual US business lawyer. Your partner would need the same thing in the Philippines.

[Pie]

Yah, you need a US-based lawyer. We've dealt with a conversion from a not-for-profit to S-corp to an LLC, and it ain't something I'd recommend taking on yourself. Especially with a foreign interest.

[slang]

Originally Posted by Griff

what he said


I have no idea...

Thanks Griff. I appreciate that.

Originally Posted by glatt

I have no idea slang, but I'm also glad to hear you are well. I wasn't up at night worrying about you, but I hoped that you were doing OK after the storms. Your storm damage photos were pretty wild. .

Thanks for thinking of me Glatt.

Much of the damage re-build from the storm has been minimal. Here it's all about getting just enough to make things work. And even those fixes to the roads and bridges are just half assed.

As an American growing up in the glory years of the US it's frustrating because there are so many people here dependant on the infra structure and it's being ignored after basic "fixes".

I've befriended a British retiree that describes all the tens of millions of dollars, pounds and euros that have been donated but that they find their way into the pockets of the politicians here.

The conditions were tough before the storms but even more so for many.

So long as the beer and gin supply are not interrupted, I'll survive.

Originally Posted by glatt

I would assume that any business located in the US would have to pay taxes in the US, and then when the profits are taken by your partner back into the Philippines, he would have to pay whatever taxes they have there. But I don't know that for a fact. .

Yes, it seems logical that my biz partner might have to pay both but the good news is that the Phil tax system is much less than the US.

Money coming into the country here is free and clear except for OFWs who are taxed about 25% and make up the biggest income for the fed govt here.

If you are doing business here as a citizen and bringing money into this country the tax rate up to about $30k is 3%. Not bad.

Since neither one of us wants to take on the US gov we'll most likely both have to pay both country's taxes.

There's no need to start sharpening knives or reloading ammo though, it's still a good living here for cheap.

Originally Posted by Pie

Yah, you need a US-based lawyer. We've dealt with a conversion from a not-for-profit to S-corp to an LLC, and it ain't something I'd recommend taking on yourself. Especially with a foreign interest.

Yes, thanks Pie. This idea has enough potential that I don't want to screw it up by trying to bypass a good US lawyer.

Consulting one will hold us up for certain but this is a good long term project. It should be worth spending the money.


After years of evaluating projects we have a good one. I'll surely be beta testing with members here at the cellar when we've cleared all the Bravo Sierra.

[Pie]

Originally Posted by slang

This idea has enough potential that I don't want to screw it up by trying to bypass a good US lawyer.

Consulting one will hold us up for certain but this is a good long term project. It should be worth spending the money.

And it will save money in the long run -- we got somewhat ...um, inadequate? advise when we first incorporated; it's taken a few Gs and a few years to get it all straightened out. Our taxes in 2009 were a real mess.