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I wonder if in the case of an international-by-default internet organisation, there might be some international workaround. Maybe they could have registered the

by netcan 11y ago

I wonder if in the case of an international-by-default internet organisation, there might be some international workaround. Maybe they could have registered the business elsewhere or even physically moved to another jurisdiction. Maybe they could have formally merged with an existing cultural exchange non profit like the various 'year abroad' exchange organisations. If a for-profit company, quasi-nonprofit or organisation without a well defined status wants to operate as a non profit and they seem to be getting results... It seems a terrible waste not to help that exist, as a society or a legal system or whatnot. If you have a million to spend on converting from non-profit to something else (or was that contingent on converting into a US for profit?), perhaps there are other options out there. What's the distinction between for profit and non profit in a "favourable" jurisdiction like Isle of Mann or The US Virgin Isles? It sounds so needlessly wasteful.

eli 11y ago
Are all tHe employees and assets going to be physically located outside the U.S. too? Otherwise IRS still wants a piece. If it were that easy to avoid taxes everyone would do it.
- netcan 11y ago
  Aren't non profits allowed to pay foreigners salaries, subject to local rules? Do US non profits pay local corporate taxes when they operate abroad?
  - cplease 11y ago
    They may or may not, depending on their domestic status with regards to the country of operation. Foreign corporations, for- or non-profit can operate in the USA. But they need to register in their state of operation in the U.S. as a foreign corporation. And unless they get a determination of tax-exempt status from the IRS, they would be subject to U.S. corporate income tax with respect to their U.S. operations. Even U.S. corporations have to register as foreign corporations to operate outside of their state of incorporation.

by netcan 11y ago

eli 11y ago

Are all tHe employees and assets going to be physically located outside the U.S. too? Otherwise IRS still wants a piece. If it were that easy to avoid taxes everyone would do it.

netcan 11y ago
Aren't non profits allowed to pay foreigners salaries, subject to local rules? Do US non profits pay local corporate taxes when they operate abroad?
- cplease 11y ago
  They may or may not, depending on their domestic status with regards to the country of operation. Foreign corporations, for- or non-profit can operate in the USA. But they need to register in their state of operation in the U.S. as a foreign corporation. And unless they get a determination of tax-exempt status from the IRS, they would be subject to U.S. corporate income tax with respect to their U.S. operations. Even U.S. corporations have to register as foreign corporations to operate outside of their state of incorporation.