Forums: Discussions for entrepreneurs and small business.

Ok,

I am a web designer, I am planning my new business and will be offering services world wide and I will be marketing in the United States and probably the United Kingdom, my question is what type of taxes will I need to pay, will I only need to be concerned about / researching the IRS.gov website or will I need to look into other countries revenue systems as well? I am based out of Arizona.

I know this may be an easy question, I believe I only need to worry about the IRS as I am based out of the United States however I don`t want to skimp on an important step such as business taxes so would like to know for sure.

Thanks for the help

If you are operating your web design business as a sole proprietor, you will only be subject to the U.S. tax code since all U.S. citizens are taxable in the U.S. with their worldwide income. The situation gets slightly more complex if, let’s say you spend more than 6 months abroad and maintain another home away from home.

If you are operating under a corporate umbrella you will also be taxed solely in the United States unless you maintain a physical location in another country, which may be subject to local taxes. Depending on your corporate structure your profits will then be taxed in the foreign jurisdiction and taxes you paid abroad can most likely be deducted from your U.S. tax liabilities.

The way I read your post though, it sounds you have nothing to worry about except for the IRS.

I hope this helps.


Mark



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Jackson Steiner
http://www.JacksonSteiner.com

Advanced Document Design for entrepreneurs, intermediaries, and the financial services industry.
http://www.Publications.FastVentures.com

I will be forming an LLC and will not reside outside of the US nor do I want to at least right now.

"The way I read your post though, it sounds you have nothing to worry about except for the IRS."

That is what I thought, thanks for the clarification.