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The Added Benefits of Running a “Lifestyle” Digital Information Business While Living Outside the US

Village on bluffs overlooking the Mediterranean, representing the freedom to live anywhere.

Since so many people who have contemplated an online business of their own have visions of living and working in a spectacular setting outside the US , here is my business structure recommendation and the added benefits of running a “lifestyle” digital information business from afar:

Important Note: this post is supplementary to my post The Many Benefits of a ‘Lifestyle’ Digital Information Business”, which discusses the advantages of such a business wherever you live. This post is specifically about additional benefits to doing so while living outside the US.

Business Structural Formula Designed to Maximize Benefits to You

  • You create an online business
  • Which you register as a US business, not a foreign-registered business…
  • For which you set-up a US business bank account to track all business income and expenses for legal and taxation purposes…
  • And you a) create and sell your own digital information products and/or services, and/or b) you sell other peoples’ digital information products and/or services by signing up as their commisioned affiliate, and/or c) you sell other peoples’ digital information products and/or services for which you have purchased a reseller’s license…
  • All of your content is written and marketed in English…
  • And its marketed and delivered online to a virtually unlimited market of English-speaking people in the US and rest of the world…
Added Benefits (over living in the US) of Following the Formula

  • You can do it all from your laptop
  • You can do it from wherever you choose to be at any given time
  • You avoid the tons of regulatory and taxation nightmares of creating a business registered in a foreign country
  • You eliminate all foreign language hurdles – in both product/services and marketing – which can be enormous
  • You sell your products/services at pricing consistent with relatively high US pricing for such things…
  • But you can choose to live in a country with a much lower cost-of-living than the US; so you are “selling high” and “spending low”; here’s just one illustration of the power of this: If you sell one Kindle e-book on Amazon at the average Kindle price of $9.95, the royalty/commission you would earn would typically be 70%, of $6.97. In my home country of Ecuador, that $7 – from just one e-book sale – would buy nearly a week’s worth of vegetables and fruits at one of the indigenous (truck-farm) markets
  • Depending on the taxation laws of the country in which you choose to live, you could possibly completely avoid that country’ foreign income and businesses taxes, because you don’t have a business registered in that country and you aren’t making income from that country’s citizens (that’s how it works in Ecuador at least). This is not tax advice. Ask your legal, accounting and taxation advisors for advice on your particular situation.

    Do keep in mind, though, that – to my knowledge as of this writing – for income taxation purposes, the US is still the only country in the world that requires its citizens to report all earned income no matter where that income might be made. But that disadvantage pales in comparison to all of the benefits of the business model discussed here.

Related Posts:

The Many Benefits of a “lifestyle” Digital Information Business

“How Much Money Can You Expect to Save By Living Outside the US?

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