It is difficult to navigate with all the information available on the subject of infopreneurs and what is happening on their legal status and the creation of offshore companies. In this article, you will find everything you need to know about your legal status by starting, but not only. You will also have information on what is available to you in terms of tax optimization and offshore company.
The term infopreneur, although still little known to most people, is becoming more and more widespread. The infopreneur is part of the new Internet business, it is a sales activity, but a sales activity of dematerialized products (video format, audio, books, software, online conferences, seminars, e-learning , …).
The infopreneur can be trainer, expert, coach, consultant or just passionate and creates infoproducts to meet the needs of Internet users. It is therefore an activity that can be carried out exclusively on the internet and which is therefore without borders.
An infopreneur is a person who sells information or training products that can be downloaded in different formats or tracks automatically and possibly anywhere in the world.
The example of an Infopreneur with a sports blog
For example, an infopreneur has a blog on the theme of sport. He regularly posts articles on a method that he particularly likes and which proves to be a success. It then makes available to Internet users, against subscription or payment on time, videos to transmit this method. This mode of operation, of sharing of knowledge, know-how, methods, … is an operation more and more common and generates sometimes very important income.
An infopreneur therefore sells his know-how, his experience, his skills (consultant, coach, author, trainer, …). These products now offer significant profitability without having to invest significant amounts.
For example, conferences can be sold, books, tutorials, … the person shares his know-how with the surfer who can easily be willing to pay tens or even hundreds of euros to subscribe, or download a document, and the provider can have very large amounts of orders and downloads, so the activity can be very lucrative.
The question is therefore how to treat these revenues? Is a status necessary to collect these revenues and how will they be taxed?
For a French tax resident infopreneur, any income must be declared to the tax authorities, whether these revenues come from France or any other third country. These revenues can be derived from an activity in the country from which the person makes the videos but it can finally come from any other country, there is not necessarily a border in this situation. For example, the website may be hosted in the United States while videos are posted from France. How then to optimize and manage the taxation of these revenues?
Which legal status to choose for an infopreneur?
One of the major advantages is to be able to create an infopreneur activity at a lower cost, unlike the creation of a company that will often involve more investment. This activity can also be a complementary activity.
It is therefore necessary to distinguish whether this activity yields additional income or whether it is very lucrative.
For an infopreneur activity that generates additional income, it is not really necessary to create a company, however, and contrary to popular belief, it is not possible to bill, even in a very occasional way, without a SIRET number. therefore it is imperative to establish at least a status of micro entrepreneur, (ex autoentrepreneur). These steps are fast and free.
Conversely, if the activity starts to generate more revenue and you exceed the threshold micro entrepreneur (70 000 € annual turnover), a company can be created, it can be especially abroad This will allow you to carry out an offshore infopreneur activity and thus optimize your tax system.
What taxation for the status of infopreneur in micro entrepreneur?
Microentrepreneurs are subject to the BIC or BNC regime according to their activity, the infopreneurs are in most cases subject to the NBC (non-commercial benefits) and must declare the income from their infopreneur activity on their annual declaration 2042 C -PRO.
The tax system of the NCB profits from a reduction of 34% on the turnover, on this turnover the taxation will depend on the TMI (marginal rate of taxation) of the infopreneur. Therefore, if the revenues from the infopreneur activity exceed the threshold of 70 000 € it will be necessary to move towards the creation of a typical company SASU or EURL but in this case, taxation can prove important, it may be appropriate, to optimize its taxation, to create an offshore company.
What taxation to exercise an activity of infopreneur after creating a company in France?
There is no need to draw up a scheme of taxation in France to know that it is particularly heavy for companies. Despite the new European corporate tax rules increasing from 331/3 to a target of 25% by 2022, the tax burden remains high. Moreover, once the corporation tax is paid, the infopreneur must also pay its income tax from this activity. It can then be very interesting to turn to the creation of an offshore infopreneur company.
Creation of an Offshore Company for Infopreneur
The idea of creating an offshore company for an infopreneur comes fairly quickly to mind, and for good reason, the possibilities to create an offshore company to optimize its taxation are very broad. If the activity of the infopreneur were to develop considerably, the amount of the tax would follow! Corporate tax, social contributions, income tax and VAT can very quickly bring down the net profit of the infopreneur. This is where the question of creating an offshore company for this activity can be interesting or even necessary.
There are many countries in which taxation is very low or nonexistent, but then how to create an offshore company while remaining in the legality? And above all, can you create a company abroad while still living in France?
The tax administration is clear on this subject, since you are tax resident within the meaning of the general tax code you must declare all your income even those from abroad. Therefore by remaining tax resident in France and by creating an offshore company, you can certainly benefit from the advantageous taxation of corporation tax in the country in which you have installed your company but all your income from this activity (ie distributed profits) must be reported to the tax authorities on your income tax return and you will have to declare your accounts abroad.
This scheme can be interesting and can optimize part of your tax but you do not escape completely.
To completely escape the French tax system, you will have to become a French tax resident.
For this, you will in principle really have to settle abroad, that is to say have your business and your residence abroad.
In countries like Hong-Kong, Dubai, Mauritius or even Malta in Europe, where it is rather easy and inexpensive to set up there, taxation and procedures will be facilitated. Nothing prevents you to settle there but to continue spending time in France, however, beware of the risk of requalification by the French tax authorities.
If, for example, you have settled in Malta, that is to say that you have your tax residence in Malta, that you have created a company there and that you are supposed to carry on your business there, it will not be necessary for you to administration can requalify you by noting that in fact you still live in France (you receive all your bills at your French home, your children are at school in France, you regularly spend money in France, …).
It will be necessary to be careful on this point but nothing prevents to live in Malta a few weeks or months in the year and the rest of the time in France considering that your lodging is a secondary residence. The advantage of Malta is that expatriates are not taxed for the companies they have created offshore, therefore
the ideal scheme may be to become tax resident of Malta, which is relatively easy, then to create a company in Hong Kong (without having to go there).
An intermediate solution may be to maintain your status as a micro-entrepreneur in France and to set up a company abroad, in a country where the names of the directors are not communicated (such as Hong Kong for example or certain British Isles) . In this case it can be clever to get the money back from your income in the offshore company created and then bill this company on your micro entrepreneur account within the legal thresholds. Thus you can benefit from the advantageous taxation of the micro entrepreneur and the contributions attached to it (social security, retirement, …) while escaping the heavy tax revenues that would have been perceived beyond this threshold.
The money that would be available in your offshore company could be spent by using the company’s credit card for your daily expenses without any abuse of social good (a concept that does not exist in law). Chinese for example).
In any case, you are advised to have the help of professionals from offshore companies to prepare the montages and be well advised on this change of situation not only to really optimize your company but especially to not make an error that could be detrimental to you.
If you really want to move, you will be in perfect legality and this experience abroad will certainly be the beginning of a new adventure.