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Incorporating FreeVPS.org
Hello!
Earlier this month FreeVPS.org passed its first birthday! Notably, FreeVPS continues adding new node sponsors and also new node neighbors. it looks like FreeVPS might live a good, long life!
FreeVPS has neither revenue nor expenses. Everything is volunteer. Therefore, FreeVPS needs help getting formally registered/incorporated as a legal entity.
Is anybody an attorney or a solicitor who might help pro bono?
Where should FreeVPS incorporate? We are all over the world! 🌎🌍
Thanks @GTHost, @crunchbits, @Jack_SBE, @PieHasBeenEaten, @Abd, @AnonymousSponsor, @DP, @Cloudie, @VirtFusion!
Best wishes!
Tom
Comments
Why?
I mean, your obviously going 501c3, soooo whoever has the best options for non-profits 🤷♂️
British Virgin Islands
— this is a serious answer, and not a joke
I've actually heard, but never researched, they have the best business-related laws.
Im not a lawyer/attorney but i have a degree with taxes etc. in my local country and have registered companies abroad (legally reported here. dont worry). I also teach my accounting staff myself and do everything myself. When the tax audit (from tax authorities someone came to office once) i handle everything myself. - All going good.
Therfor if you are getting tied a bit into this you should be able to handle it yourself with no additional costs by a 3rd party
Dont listen to anyone who tells you to incorporate in a offshore country.
Please get trusted with your local laws regarding that. And your local tax laws in regards to that offshore company you may register. Otherwise you may face some problems in some years.
thanks.
Hi @Lee!
To have the corporation exist as the legally responsible party.
Which, in turn, would get FreeVPS more server node sponsors!
Recently FreeVPS had a potential server sponsor pull out because they insisted on a $5 per year payment from a member of the FreeVPS Team so that they could tell the police in their country that the person who paid was the person responsible for the server. Of course, $5 per year is "nothing" for a dedicated server. But, the $5 per year payment, even though small, means responsibility.
Within the past few days, several other potential server sponsors have asked for someone's name, address, email, and phone. If FreeVPS were incorporated, then FreeVPS' name could be used to register accounts at our sponsors.
FreeVPS went from one node to seven (eight?) in its first year. FreeVPS might have ten or more nodes now if FreeVPS had been incorporated.
Another option besides incorporating might be to form an unincorporated association in some place where the law allows it. But by the time we draft the association's charter/bylaws and go through getting all the server sponsors and all the users/neighbors to join formally, it just seems like forming a corporation might be easier.
What do you think? You have a lot of experience!
Thanks!
Tom
https://www.careyolsen.com/briefings/why-incorporate-a-startup-in-the-british-virgin-islands
— not an advice, consider this post as an opinion to get more details
Hi @jfreak53!
At least in many parts of the US, I hear that the initial registration is simple. I also hear, however, that federal and state tax exempt status is not always easy to obtain. I need to learn more about how technically qualified FreeVPS.org would be for federal and state tax exempt status.
Of course, there are also many other jurisdictions all around the world. We have sponsors and neighbors in many places. I need to learn more about which jurisdiction would be the best.
Thanks!
Tom
The physical server nodes are in multiple geographical areas
Hi @dev_vps!
Thanks for your idea! Thanks especially for the link. I will take a look!
Best!
Tom
every great sentence can and does start like this
case in point:
Congrats on your skills!
But FreeVPS is not just me! We have FreeVPS Team members in four countries!
How can "home" be an "offshore country" when guys on the FreeVPS Team live there! 
Good point! I'm not expecting high taxes where there isn't any or hardly any revenue. But still, that's right, and I will pay attention as you suggest.
Thanks to you! I appreciate your help!
Best!
Tom
I'm not a lawyer but I think you should have pizza for breakfast.
Had sausages today
Didn't even wake up very late or anything, just felt the need for sausages
Thanks
Where are you or main shareholder/equally from?
Its complicated. But there may be cost effective solutions in US. (i think you are from US?)
Stripe Atlas https://stripe.com/docs/atlas/signup
But then if you are from other state then Delaware you might still need to consult how this is going with your local laws.
I dont know how this is handled in US. IN europe its more complicated.
This question is maybe too much for LET.
For example in my country (germany) alot of paperwork needs to be done when you have company abroad in another (country. So it might be the best to register it locally with your local authorties. Just visit them. They will tell.
Incorporate in the lawless iceberg of Antarctica.
All you need is a text file that contains your desired corporation name.
If you don't need it to be a nonprofit, you can start a US LLC or corporation in somewhere like Delaware or Wyoming (popular choices) very cheaply. For LLC, only a few hundred bucks upfront plus maybe $100/yr ongoing. There are countless services who will do the initial filing for you and some even offer to handle your yearly filings and taxes.
You can choose any state, but they have varying fees to incorporate and some are more expensive and have different tax codes. The reason Wyoming for example is popular is because of the 0% corporate income tax, no need to sign any documents or put your name on any of the business papers. You also don't need to reside in the US but you will have difficulty setting up a US bank account (if needed) as a foreigner.
A US company also appears much less shady than some little "offshore" place like BVI, bahamas, belize, seychelles, etc.
Ask a Lawyer, some do discounted rates for non profits or free initial consultation.
Local laws make stuff way more complex.
LTD was a cheap option, sadly no more.
vouch vouch vouch
they are Pro in this business
it depends
Still cheap as fuck though, however some local laws may not see a LTD as a company anymore. Its a pity.
There are guys from, at least, US, India, Canada, Japan, England.
New York City 🗽🇺🇸
That's a helpful link!
Unquestionably!
Yes, sure. But, again, it's not just me.
Thanks so much!
I don't think it's a good idea, the negatives (cost, tax, legal, etc.) far outweigh the positives.
For Delaware I see $160 one time fee plus $50/year for registered agent. Suppose FreeVPS got 5 extra server nodes, or 10, because Providers were more willing to sponsor a corporation? Would that be worth it?
Would anyone be willing to donate the $160, or part of it? (Not asking for funding now, just wondering what people think.)
$40 my part
🙏🏼🙏🏼
@dev_vps Oooh! Lala! Merci beaucoup!
Okay, $16 from me. (Again, not asking for funding now. Still deciding whether to go ahead with incorporation. But it's super great to see some super support! Thanks again @dev_vps!)
$160 - ($40 + $16) = $104 to go. Who else is in?
Also not an advice. I know a few people have such ventures. To my understanding they have strong privacy law that almost impossible to forced compliant by other governments. As long as you don't break local law you would be safe, legally at least.
But then again, there are a few cases of local agent runaway with your money whether it's the Caribbean or East Europe.
Incorporate it in the country you're living.
In your case, US.
Since there is no revenue involved then ideally you shouldn't care much about taxes & stuff? rather keeping things transparent with the Govt.
So do not create hurdles or more headache (as I assume it come with any free service being provided) for yourself. Register it as non-profit or whatever.
Like FreeVPS - there was a similar provider: https://yellowcircle.net/ registered in US. They were not generating any revenue either (as what I know - can be wrong). You can reach out to them and take suggestions maybe.
Good luck!
I had thoughts about registering in the UK.
https://www.gov.uk/limited-company-formation?step-by-step-nav=37e4c035-b25c-4289-b85c-c6d36d11a763
Limited by guarantee, and keeping the guarantor fees as low as possible.
What do you guys think?