International Taxes??

[JIMMY C]

Hello everyone. I am a professional landscape and ocean photographer. I am from Florida and currently living in Australia. I am planning on building a website and selling my images to People in the USA and Australia. I do not plan on making more than 50,000$ during my first financial year.

My questions are
1. Do I need to register my business in both countries
2. Do I need to pay taxes in both countries? If yes. Do I pay taxes on revenue generated from just the sales from that country or all of the money I made that year.

Thanks a lot for the help. Jim :)

[Freelancier]

Start here: United States Income Tax Treaties - A to Z (http://www.irs.gov/Businesses/International-Businesses/United-States-Income-Tax-Treaties---A-to-Z)

Then go get an accountant familiar with international taxation to help you through the mess. You'll likely end up paying taxes to both countries, but in a way where you get credit in the other country for having done so.

As for where to register your business... you can register a business pretty much anywhere provided you have a local "agent" to accept any legal documents on your behalf. You'll want a bank account there as well, so somehow you have to figure out how that will get set up if it's not local to you. It's easier to just register the business local to where you are, but there could be some benefits to registering the business in Florida. Wherever you register the business, expect to pay local business taxes on it. You should look for an attorney familiar with international law as well, just to make sure you get everything done properly.

[Jschultz]

You will likely have to file tax returns in both countries. USA residents have to report their worldwide income on the tax return. US residents do however receive a credit against that tax for any taxes paid to other countries. Basically the IRS will make sure you are not double taxed on your income.