• Country: Hong Kong, The U.S, BVI
  • Services: Company formation
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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:

  1. US company: Eliminate the 30% withholding, but requires US corporate tax payments
  2. Hong Kong company: Can apply for exemptions, reducing the tax burden
  3. 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
  • 0%YouTube withholding tax - Immediately save 30% on all YouTube income
  • Enhanced credibility with brands and potential business partners
  • Easy business AdSense account setup and online payment processing
  • Access to premium YouTube partner programs reserved for businesses
  • Simplified advertising contracts with international brands
  • Federal corporate income tax (20%+, depending on profits)
  • Additional state taxes (0-13%, depending on the state, with California at around 7%)
  • High compliance and accounting costs
  • Complex financial reporting requirements
  • Potential double taxation issues if not properly structured

Tax optimization tips for companies in the U.S

When operating a US company, you can legally reduce your tax burden by deducting:

  1. Content production equipment (cameras, computers, software)
  2. Marketing expenses (advertising, event participation)
  3. Workspace costs (studio space or home office)
  4. Travel expenses related to content production
  5. 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
  • Relatively low corporate tax (16.5% on profits)
  • Potential tax exemptions in specific situations
  • Solutions for the 30% withholding issue
  • Easy international transactions
  • Good access to Asian markets for creators targeting Asian audiences
  • Higher setup and maintenance costs compared to offshore jurisdictions
  • Strict financial reporting requirements
  • Increasingly stringent banking regulations
  • Possible annual board meeting requirements
  • More complex administration than tax havens

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
  • 0% corporate income tax 
  • High privacy protection for YouTube channel owners
  • Low annual maintenance costs
  • Simple setup and management procedures
  • Minimal financial reporting requirements
  • Tax refund process required for the 30% YouTube withholding
  • Difficult international banking access due to stricter anti-money laundering regulations
  • May affect partnerships with major brands
  • Potential business visa difficulties when traveling to developed countries
  • Higher scrutiny from platforms during verification processes

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:

1. Channel size and revenue
  1. 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.
  2. 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.

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:

7. FAQs about opening an international company for Youtube content creators

1. With revenue around $5,000-$10,000/month from YouTube, where should I establish my company?

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.

2. Can I use my international company to receive income from platforms other than YouTube?

Absolutely! Your international company can receive income from various platforms:

  1. Video platforms: YouTube, TikTok, Facebook, Instagram Reels
  2. Streaming platforms: Twitch, Trovo, Facebook Gaming
  3. Support platforms: Patreon, Ko-fi, Buy Me A Coffee
  4. E-commerce: Online stores, digital products, courses
  5. Advertising: Brand partnerships, affiliate marketing

An international company helps you efficiently manage all these revenue streams while optimizing your tax obligations legally.

3. How do I handle the 30% withholding tax refund process with a BVI company?

The process typically involves:

  1. Providing your company information through the W-8BEN form
  2. Documenting your company's tax status in BVI
  3. Working with YouTube/Google's tax department
  4. 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.

With over a decade of experience serving as a trusted partner to more than 750 business owners seeking professional development and breakthroughs in the international market, we are an  expert strategic corporate service provider helping you incorporate and operate successfully in 10 different countries

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