As a YouTube creator outside the U.S, you're not just making content—you're running a global business connecting with your subscribers and viewers.
But here's the problem:
Without the right business structure, you could lose 30% of your YouTube income to withholding taxes.
This comprehensive guide will show you exactly how to set up an international company that can:
- Save thousands in taxes by reducing or eliminating the 30% YouTube withholding
- Build credibility with international brands and sponsors
- Protect your personal assets from business liabilities
- Manage your finances more effectively
- Scale your income through multiple monetization channels
Based on strategies used by successful creators worldwide, I'll walk you through your three best options for setting up an international company and help you decide which one is right for your situation.
1. The hidden tax problem costing YouTubers thousands
If you're a creator living outside the US, YouTube automatically withholds 30% of your earnings (Source: U.S. tax requirements for YouTube earnings)
For a creator making $10,000 monthly, that's $3,000 gone every month—or $36,000 annually!
This withholding is required by the US Internal Revenue Service (IRS), and most creators simply accept it as an unavoidable cost of doing business.
But it doesn't have to be this way.
With the right international company structure, you can legally reduce or even eliminate this withholding tax.
2. 4 pillars of a sustainable international YouTube business
Before diving into your options, let's establish the four key elements of a successful international setup. These 4 considerations are what you have to keep in mind when you incorporate your own company to deal with accounting, tax and trademark of your brand name,
2.1. Strategic tax planning
The 30% YouTube withholding tax is your biggest obstacle. Each business structure, which our experts suggest below, offers different solutions:
- US company: Eliminate the 30% withholding, but requires US corporate tax payments
- Hong Kong company: Can apply for exemptions, reducing the tax burden
- BVI (British Virgin Islands): Require tax refund procedures but offers 0% corporate tax
2.2. Professional income management
No matter which structure you choose, proper financial management is crucial:
- Separate business and personal finances: Always route YouTube income to your company account first
- Use international payment solutions: Services like Wise, Payoneer, or Revolut make cross-border transactions easier
- Develop a financial plan: Create strategies for reinvesting in your channel and growing your brand
2.3. Multiple income stream management
As a creator, you likely have various revenue sources that may be taxed differently:
- YouTube AdSense revenue
- Direct viewer support (Super Chat, Channel Membership)
- Brand sponsorships and advertising deals
- Merchandise sales
Your international company should be structured to handle all these income streams efficiently.
2.4. Intellectual property protection
Your content, brand name, and channel identity are valuable assets that need protection. The right international company can help you:
- Register copyrights under the company name
- Manage your personal brand professionally
- Access legal tools to address unauthorized content usage
With these foundations in place, let’s explore
3. 3 best international company structures for YouTubers
Let's examine your three main options in detail:
3.1. Option 1: US company formation
A US company offers the most direct solution to the 30% withholding problem, but it comes with its costs and requirements.
Advantages | Disadvantages |
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Tax optimization tips for companies in the U.S
When operating a US company, you can legally reduce your tax burden by deducting:
- Content production equipment (cameras, computers, software)
- Marketing expenses (advertising, event participation)
- Workspace costs (studio space or home office)
- Travel expenses related to content production
- Personnel costs (editors, designers, assistants)
3.2. Option 2: Hong Kong company formation
Hong Kong offers a good balance of tax benefits and business credibility, making it popular among Asian content creators.
Advantages | Disadvantages |
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3.3. Option 3: BVI (British Virgin Islands) company formation
BVI and similar offshore jurisdictions offer minimal taxation but come with certain challenges regarding banking and credibility.
Advantages | Disadvantages |
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4. Which option is best for your channel?
To help you compare between the three company formation options, we create a comparison table below
Criteria | US Company | Hong Kong company | BVI Company |
YouTube 30% withholding | None | Need to file for tax exemption | Need to file for tax refund |
Corporate tax | 20%+ | 16,5% | 0% |
Company incorporation costs | High | Medium | Low |
Maintenance cost | High | Medium | Low |
Brand reputation | High | High | Medium |
Ability to open a corporate bank account | Easy | Medium | Low |
Reporting requirements | Complex | Medium | Simple |
Information privacy | Medium | Medium | High |
Channel growth support | Excellent | Good | Medium |
In addition, your ideal company structure depends primarily on three factors:
- Revenue over $100,000/year: A US company is typically most effective. Despite paying corporate tax (around 20% on profits), you'll avoid the 30% withholding on total revenue and can deduct legitimate business expenses.
- Revenue under $100,000/year: BVI might be more cost-effective with low setup and maintenance costs, even though you'll need to handle the tax refund process.
- US-focused audience: A US company provides maximum credibility with American brands and partners.
- Asian-focused audience: A Hong Kong company might be more suitable while still maintaining good international credibility.
Expanding into other business areas: US or Hong Kong companies offer greater flexibility and growth opportunities.
Focusing solely on YouTube income: A BVI company may be sufficient at the lowest cost.
5. Real-world examples we support
Let's look at three typical scenarios to help you understand which option might work best for you:
5.1. Scenario 1: Creator with $50,000 annual revenue
At this revenue level, the 30% withholding ($15,000) is significant, but the costs of establishing and maintaining a US company might outweigh the benefits.
Best option: A BVI company offers the advantage of zero corporate tax, even though you'll still need to go through the 30% tax refund process. The lower setup and maintenance costs make this more economical at this revenue level.
5.2. Scenario 2: Creator with $300,000 annual revenue
With this income, the 30% withholding ($90,000) is substantial enough to justify more complex solutions.
Best option: A US company would likely save you more money despite paying corporate tax of approximately 20% on profits. After deducting legitimate business expenses, your effective tax rate could be significantly lower than the 30% withholding.
5.3. Scenario 3: Creator focused on Asian markets
If your content and audience are primarily in Asia, your business structure should reflect this focus.
Best option: A Hong Kong company provides an excellent balance between reputation, cost, and tax benefits for Asian-focused creators. Hong Kong's developed financial system and geographical advantage make it ideal for accessing Asian markets.
6. How can we help content creators open their companies to receive YouTube income?
Setting up an international company is an important step in a professional YouTuber's career. Each option has its own advantages and disadvantages.
The best choice depends on many factors like channel size, revenue, target market, and long-term growth strategy.
If you're a YouTuber considering setting up an international company to optimize taxes, our experts at Global Link Asia Consulting are your helpful partner in building a complete strategy and setting up a sustainable company.
We provide full support, from start to finish:
- Register a company in the U.S, Hong Kong and BVI;
- Open a corporate bank account with a 99% success rate;
- Choose the right company types for tax optimization;
- Apply for business licenses;
- Get an affordable, professional registered office address for business;
- Support to open, authenticate, and manage Stripe Paypal Business in Singapore, Hong Kong, and the U.S;
- Handle all your tax accounting needs, timely annual filings, auditing, and more.
7. FAQs about opening an international company for Youtube content creators
With revenue of $5,000-$10,000/month (approximately $60,000-$120,000/year), a US company would likely be your best option.
At this revenue level, the 30% withholding becomes significant enough to justify the higher setup and maintenance costs of a US entity.
Absolutely! Your international company can receive income from various platforms:
- Video platforms: YouTube, TikTok, Facebook, Instagram Reels
- Streaming platforms: Twitch, Trovo, Facebook Gaming
- Support platforms: Patreon, Ko-fi, Buy Me A Coffee
- E-commerce: Online stores, digital products, courses
- Advertising: Brand partnerships, affiliate marketing
An international company helps you efficiently manage all these revenue streams while optimizing your tax obligations legally.
The process typically involves:
- Providing your company information through the W-8BEN form
- Documenting your company's tax status in BVI
- Working with YouTube/Google's tax department
- Following up regularly until the refund is processed
While this requires additional effort, the zero corporate tax in BVI can make it worthwhile for some creators.
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