This article is a continuation of the previous one, where we have incorporated the digital nomad, where we continue to explore options for internet entrepreneurs to structure their business successfully. In this article, we’ve talked about the importance of having a corporate entity, but we haven’t covered (coming soon) bank accounts or merchant accounts. In
This article is a continuation of the previous one, where we have incorporated the digital nomad, where we continue to explore options for internet entrepreneurs to structure their business successfully. In this article, we’ve talked about the importance of having a corporate entity, but we haven’t covered (coming soon) bank accounts or merchant accounts.
In this article, I’ll show you how to structure your business with a high risk merchant account or payment processor to accept credit card payments over the web. You can call this article: where to find a merchant account for my online business. First, if you want to avoid all this and we just wanted to help you get an account, use the form below.
Part 1: Onshore
It is quite possible that you could reap great benefits from a simple installation in the United States. Indeed, banking in the United States offers distinct advantages. Being the largest economy in the world (at the time of going to press), the United States also has the most advanced banking system, which offers simple benefits to start-ups and SMEs. There are many different options when it comes to credit card processing, which can be a good place to start if you want to process your payments online.
Many businesses profit greatly from selling on Amazon or connecting to a Silicon Valley giant like Paypal or Stripe, simply because these platforms make payments easy. As shown in the diagram below, the payment processor (full solution, such as Paypal) provides the gateway and merchant account. They often secure their own independent relationships with the bank. It is therefore difficult to negotiate preferential conditions. However, you don’t need to know the payouts to get started. Ideal for beginners or those just starting out.
For Americans: start a business, get an EIN, open a bank account, and create a merchant account. Avoid additional compliance requirements when expanding offshore For non-Americans: Start a business, get an ITIN, open a bank account, and create a merchant account.
As you can see in the diagram to the right, your website interfaces with a complete solution. In fact, PayPal makes it easy for people to accept payments on their website. Many vendors never understand the full concept of how technology actually treats customers’ credit cards. Even so, this is an oversimplification, but it illustrates an important point and a distinction between processing onshore and offshore credit cards for your needs as a seller.
In larger markets, the industry has consolidated and is relatively transparent, which means very low rates are possible and you can find a “one stop shop” for your payment needs. However, if you are dealing with risky payments, own an offshore company, or want more control over the processing, you may need to get a merchant account and contract directly with an investment bank. The Bottom Line: Set up a Wyoming LLC company for a fast, easy, and inexpensive payment card solution for your online business.
Part 2: United Kingdom
Suppose you want to expand and sell in Europe, you can set up a company, merchant account, and have a completely new setup for that market. Or, you could form an affiliate. The UK should be the first place you look. Advantages: Quick installation, ease of installation, low cost and ease of start-up. Cons: Potential both tax and legal liabilities. Many requirements for maintaining compliance see below.
For Americans: you may want to consider other options such as Switzerland, Malta or Luxembourg. Unless you have significant sales, stay in the US market for now, as more complex setups require professional help and advice. Large companies such as Amazon (Luxembourg) and Google (through an organization called the Irish-Dutch Double Sandwich) have specialized structures that maximize profits and effectively reduce and avoid taxes. Special attention is paid to compliance with IRS tax laws and other local tax laws.
For non-Americans: For example, you might consider setting up a subsidiary in Great Britain with a Nevis holding company. This configuration could potentially allow the accumulation of tax-free income. However, you should get individual tax advice for any legal setup before taking any action. I’m just letting you know that it’s available and that it has worked for others.
Compliance: The UK is more complicated and one of the strictest places when it comes to setting up a merchant account or selling online. However, merchant accounts are powerful and can handle the European market without processing errors. The UK is an efficient way to effectively access the entire European market. However, compliance can be onerous, for example, see details from this UK government site below.