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28 November 2006

Been glued to the PC these past few days researching where to incorporate and how to minimise sales taxes. We’ll have to eventually hire a lawyer but for now we’ve decided to keep things simple and incorporate in the U.S.

Among the most burning questions that are still unanswered:
- if we ship a product from the UK to a customer in Spain, do we pay the VAT to the UK or the Spanish tax authorities?
- if we ship a product from the US to a customer in the EU, are we exempt from charging VAT, since the US is not a EU state?

We also have others on corporate income taxes, personal income taxes, and dividend taxes. But we can worry about this later once the company takes off.

Can’t wait till this adminstrative burden is over so we can concentrate on just making T-shirts.

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