Are there any RL accountants into SL?

[beethros Karas]

Hello world.

I was thinking to grow my SL hobby to a RL business, instead of closing it and make more than 100 people unhappy - as they claiming to be, if i do so- which of course isn't easy.

Three reasons make me want to make my hobby a RL business.

a) Because of All these people who ask me not to close.

b) Because Im European and so I'm forced to pay more than others. A Mainland SIM for me cost US$240 instead of US$190 because of 23%VAT. So having a RL business, LL is obligated to send me an invoice - i hope - including the whatever i spend to pay my tier to them and so, if that way,  I can provide it to my GOV and they will pay me back that 23% (US$50) - actually they deduct it from my taxes.

c) because I don't keep the US$ as I am appearing of earning, but I am paying the tier to LL with them, and therefore I will have to be taxed (28%) In case i go over a specific threshold amount as it appears here in LL pages:

"The Internal Revenue Service (IRS) requires Linden Lab to collect and retain Form W-9 (for U.S. residents) and Form W-8BEN (for non-U.S. residents) at certain transaction volumes. If you reach the transaction threshold and we do not have your completed and signed W-9 or W-8BEN on file, we are required to withhold funds from your account (at the current rate of 28%** of your gross amounts received)."

In case i was a creator that's acceptable. i give back 28 from my 100 earned dollars and feel GREAT because I'm paying taxes and make a better world. But for me, a landlord, its different and GOV simply doesn't care. Whatever linden it comes to me, almost all goes to cover my LL tier and first needs to be exchanged in US$ before i pay them - that's why i appear to earn a lot of US$ while i don't. I don't pay my tier with lindens. I have to exchange them to US$ and with these US$ pay my LL tier. 

**Note: There is no way a Landlord in SL charge 28% MORE them tenants. Simply it will be overpriced and no one will rent it.

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I wish all will be more specific and so i could keep only a few SIMS for some people... but the transaction threshold amount isn't clear and so i am not willing to risk to pay lets say a few thousands of US$ just for to keep a few people happy.. It isn't fair and those people understand it - i hope.

So, just for a last chance, here I am, asking to found and hire a RL accountant who uses or knows about SL, to see if there is a way a to keep a RL business in Europe managing a SL rental Co.

I am living in 3Dworld all day or if i dont, im logging in 10 times a day and my IMs aren't going capped, so please DON'T send me a Notecard. Simply IM me.

Voice chat will be excellent, but i can follow Notecards or email as well due to our time zone difference.

Thanks.

 

[Amethyst Jetaime]

They will only withhold taxes if you DON'T provide them with the Form W-8BEN (for non-U.S. residents) and cash more than a certain amount.  If you give them a completed form they won't withhold taxes.  If you haven't been asked to fill one out then you haven't cashed out enough yet. 

Here is what LL said about the matter in this blog post:

The Internal Revenue Service (IRS) requires Linden Lab to collect and retain Form W-9 (for U.S. residents) and Form W-8BEN (for non-U.S. residents) at certain transaction volumes. If you reach the transaction threshold and we do not have your completed and signed W-9 or W-8BEN on file, we are required to withhold funds from your account (at the current rate of 28% of your gross amounts received). Additionally, for U.S. residents with 200 or more transactions with a total amount in excess of $20,000 in a calendar year, we are required to file a Form 1099-K with the IRS reporting those transactions for that year.

If you are required to submit a W-9 or W-8BEN form to us, we will email you before the end of the year with instructions on how to do so. Please follow the instructions to complete and submit the required Form W-9 or W-8BEN within thirty (30) days of receipt. You will only need to complete this paperwork once unless your information changes from year-to-year. If you do not receive an email from Linden Lab, we do not need you to complete these forms.

 

 

[Alien Wise]

Greetings.

I will start by saying that I am not an accountant, but I read your message and I would suggest a different approach to solve the problem you are experiencing.

It is possible for you to set up an RL company in the United States eventhough you are a Greek national. You would probably want to create a Limited Liability Company (LLC) to protect your personal assets. The costs for doing so vary from state to state, so you will probably want to search carefully for a state that offers cheap LLC creation. Last I knew the state of Michigan is cheap and allows you to create an LLC through online application and the process is completed within just a few business days.

Once you have your US LLC, you can then purchase your SL mainland sims through that company, which will then cost you just the US$190, instead of the US$240. When your LLC generates income on the land holdings, it is your LLC that will have to pay the taxes to the US IRS. The US federal business tax rates tend to be significantly lower than in the EU (and of course it matters in which state you have created your LLC when it comes to state level taxation).

Due to the tax treaties that exist between the US and most other countries, your LLC would then not have to pay tax to the Greek government, because the treaties are designed to prevent double taxation.

If/when your LLC pays you to your Greek bank account, that would count as income according to the Greek government and you would have to pay taxes in Greece on that personal income.

In conclusion, setting up the LLC in the US would be cheaper, you could operate your business as a US LLC and get the sim price benefits of that, you could get the lower tax rate benefits and you should not be double taxed on the Greek side of the story. Only when you personally receive funds from your LLC would you personally get taxed on the Greek side. Taken together this could result in significant savings.

For clarity, I am not an accountant and am merely posting this suggestion for your consideration. Careful research is required to make sure of the tax treaty details between the US and Greece. I would like to know how things work out for you.

Kind regards,

Alien Wise

 

 

 

[beethros Karas]

hello Amethyst.

tanks for your effort.

Unfortunately... 

I prefare to be taxed 28% than 30%

If i fill out a W-8BEN and declare that i exchange 12,000 dollars in a year, they will tax me approx. 28% for that.. so it is an amount of approx. US$3600. It will not be asked from LL.. it will be asked from my GOV/USA gov..

If i dont fill out a form.. then LL will hold from me a 30%

Thats the only thing clear in this case...

So, do you know an accountant?

[beethros Karas]

Thank you Alien!

I am on the procces of learning all about opening an LCC.

Thank you so much!

This reply is really interesting me!