Legal form for online business sought preferably abroad with residence in Germany.
Dear Sir or Madam,
I am looking for a suitable legal form for my online business, preferably outside of Germany, while currently residing in Germany.
Digital products and consultations are offered via email/phone, with an international clientele, the majority of whom are from Germany.
My goals are:
- I want to keep liability risks low (therefore not operate as a sole proprietor).
- Minimize the risk of legal actions (foreign companies are less attractive for legal disputes in Germany).
- Maintain the company even if I move away from Germany.
- Keep costs low.
- Ideally, I do not want my private address to be associated with the business.
Often, the focus of offshore company formation is on reducing/avoiding tax burdens. I have already found out that with a foreign company without substance, while residing in Germany, I would be fully liable for corporate taxes.
I am aware that the requirements for substance in a foreign company are quite high, and creating a viable substance can be very complex and expensive depending on the country.
Now, to my questions:
1.) What would be the consequences of establishing a foreign company while residing in Germany if no substance can be proven? Is there a risk of being classified as a sole proprietor?
2.) How would the company be legally classified by the tax office/other authorities? What would be the jurisdiction?
3.) Could I achieve the above-mentioned goals with a foreign company despite the lack of substance? (Especially liability is important.)
4.) If residing in Germany, what legal forms in Germany, EU, non-EU would you recommend for my project?
Kind regards,
