I have a day job and in my leisure write a book. When the book is complete, I want to sell it. Thereafter, I will write another book.
The first couple of books will, most likely, be sold at a loss.
But if I continue to write and improve myself as a writer and businessperson, it is possible that eventually one book or the other will be sold at a profit.
In the country where I live (Austria), if you engage in any sort of entrepreneurial activity, you have to
- be a member of the chamber of commerce (this is mandatory, costs money, and you cannot opt out) and
- pay substantical "social security" fees which are a complete waste of money, unless you either are severely sick or game the system (if you are more or less healthy, those payments don't give you anything).
For a variety of reasons (incl. aversion to this kind of socialism and instances where the authorities treated me in violation of the law) I want to avoid dealing with those government officials.
Therefore I'm looking for a way to legally
- spend money for creation of books (e. g. editing, covers, all sorts of advertising),
- take money from buyers (when a book is sold on Amazon or Smashwords) and other entities (e. g. if I create a video on YouTube and get paid by YouTube) via usual channels (wire transfer, PayPal etc.),
- avoid paying taxes in a given year, if the expenses in that year are greater than the revenues (e. g. if I spend 2000 Euros for publishing a book, and sold only 1900 Euros worth of book copies),
- avoid paying money for things I don't need (like those social security fees which force me to pay for the medical bills of people who ruin their health),
- avoid dealing with Austrian authorities (i. e. I would pay taxes and other fees in another country, not in Austria), and
- be able to move to another country without re-registering the business entity (i. e. the company stays where it was even if I as its owner move to a different place).
What I want is, basically, to concentrate on my writing and spend as little money, energy, nerves, and time dealing with authorities.
So far I found two options that seem to satisfy the above criteria:
- Estonian e-residency
- Irish LLC
As far as I know, in both cases I would have to pay something to Austrian authorities because both countries are considered "low tax" countries. But it may still be worthwhile because I would not have to pay the social security fees (correct me, if I'm wrong).
Are there any other options fitting my purposes that I am not aware of?
Notes: You can find plenty of offers for offshore companies. I rejected most of them for two reasons:
- They may look suspicious (e. g. an offshore company registered in Belize) and tax authorities may go after me just because it looks illegal (even if it isn't).
- The tax code of that country is as complex or more complex than the Austrian one. This applies for all types of offshore companies in the US. That is, the American IRS maybe be as evil as the Austrian authorities.