starting an online business outside the u.s.
by jjsoto84, Window Shopper
- Created: January 22, 2011, 7:33 pm
i'm thinking of starting my own online business selling handmade clothing from south america. this business will be strictly online, so i won't be looking for any retail space or holding 'main headquaters.' i plan on doing administrative work and such in south america but i want to target my business to european and american audiences. if i get some consumers in south america that's great too.
so here are my questions. i'm an american citizen living overseas looking to work with possible textile contractors or employees to be a part of my business. if i hire employees, i can request for them to work from home. from what i've read so far, and to my understanding, if i work with contractors then i don't have to worry about them paying u.s. taxes or me having to deduct my payment to these contractors in order to pay my taxes. i assume naturally these contractors will pay taxes to their native country and not to the united states. but if i decide that hiring employees is a better option for my business, what tax laws and regulations must i follow? these employees will be working in their native country and they are non-u.s. citizens so i assume they won't have to pay taxes to the u.s., right? why should they pay taxes to the u.s. if they won't benefit from u.s. services like social security, u.s. health care, unemployment, etc. i may be wrong but that's why i need advice.
my other question is, would my business be considered south american? am i still able to register my business as u.s. based even though i do business and currently live overseas? i use to live in new york, so do i file my online business in new york? i don't have dual citizenship anywhere so i'm basically just an american citizen starting an online business who happens to be living overseas.
i also am not sure if an online business is considered self employment or a small-business. any help on that too?
this is pretty complicated for my first post so my apologies! it's just that i really need some advice on this and any help would be really helpful!
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