united-states, taxes, paymentBecause of the US tax withholding, I am thinking about offshore company for my new online business.
I am not an American and not living in US.
My new business is all about digital goods, no shipments. The question is if Paypal will work with my offshore company, some said that Paypal is based on where I am, not where the company is located, is it right?
You need read the terms and conditions on paypal as chances are there are other things you have not considered.
However - the relationship is between your entity (company) and paypal, not you and paypal. So long as the company is legally registered somewhere that paypal operate, I don’t see any issue.
And I am less familiar with “US tax witholding” but my two cents worth is when it comes to tax, don’t bugger around with it. Ger proper legal advice. What you thought or read on a blog will not help you much when caught out.
Do not assume that just because you are not in the US that you can escape their reach. The “Natwest 3” in the UK about 10-15 years ago proved a US judge can request the UK to extradite someone based on less evidence than would be expected in the UK to prosecute someone. If you sell to the US, regardless where you are based, you need check if they apply a tax or not.
Best of luck
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