Offshore Company for OnlyFans Content Creators

Creating an offshore strategy for an OnlyFans business adds extra complexity to the set up, because in addition to the regular international taxation, corporate and legal aspects involved in any offshore strategy, OnlyFans content creation might be considered a high risk business, hence would need to be aware that:

• Most offshore banks will not onboard these type of businesses.

• Most registered agents will not accept businesses engaged in the adult industry entertainment, even if the OnlyFans content is not explicit at all.

• You have to pick the right jurisdiction, as OnlyFans does not allow offshore tax-free companies from all jurisdictions.

The above were the specific considerations for an OnlyFans business. In addition to the OnlyFans-specific considerations, you need to take into account:

• Your personal tax situation, especially if tax optimization is the main purpose of forming an offshore company.

• Economic Substance Requirements of the Company, if any.

• CFC Rules.

• Common Reporting Standard or FACTA.

• The company’s yearly compliance requirements.

• Jurisdiction privacy level.

Banking solutions:

Most offshore traditional or digital banks will not onboard companies engaged in the adult industry. Eventhough the business is not illegal at all, this industry is just not within their business appetite, just like crypto businesseses.

We highly recommend that for this type of business you don’t try to fool the bank and tell them that your business is a different line, because even though the payments the payments from OnlyFans say Fenix International Ltd, banks know that Fenix International Ltd is OnlyFans.

That is why you must go with a bank that is fully aware of your business line, otherwise they might freeze your account.

Registered Agent.

Depending on the jurisdiction you pick, a registered agent might be less willing to onboard this line of business. 

On the other hand, there are jurisdictions where all registered agents are ok with your line of business, and OnlyFans will take it, but there might not be tax benefits.

When setting up your OnlyFans and Offshore structure you have to make sure all aspects align.

It will not work if you are able to form the company, onlyfans accept it, and the entity is well optimized, but the bank does not take your business.

Same goes if you can form the company, the bank accepts it, it is well tax planned, but OnlyFans would not take it.

Picking the right jurisdiction

To address why picking the right jurisdiction is highly important, let’s discuss an example why picking the right offshore jurisdiction is truly important for illustration purposes only.

Wyoming LLCs taxation is based on how many owners it has, if the company is owned by a single member who is not a foreigner, it will not pay taxes (classified as Foreign-Owner Single Member LLC, and it will not be subject to U.S. taxes), but if the Company is owned by 2 or more individuals it will be tax classified as a partnership, and it will also be taxed if it elects to be tax classified 

Wyoming is usually one of the best jurisdictions for offshore company formations, and for this business you can open a tax free entity with an offshore bank account, but the issue is that OnlyFans will not take this company as this Wyoming LLC is not a company that pays taxes in the U.S.A. The only way OnlyFans would take an OnlyFans Creator business is if this Company is a tax-paying entity in the U.S.A taxed as a Partnership or Corporation.

That is because they ask you for W-9 Form, instead of Form W-8Ben-e, being the latter the correct one for Non-Tax Paying Wyoming Offshore Companies.

But OnlyFans will take an offshore company from other jurisdictions that are tax-free, so OnlyFans has different rules depending on where the company is formed.

Picking the right jurisdiction is the most important decision in whole structure, as that is what might determine the acceptance by the registered agent of your business line, and then by OnlyFans. Once you set up an offshore company that matches your purpose of everything, banking is much easier.

International tax rules

In addition to making sure your offshore strategy matches the requirements for OF and the eligibility for the bank account, etc., you have to take into consideration all other aspects involved in international tax planning, making sure it aligns with your specific personal tax situation. 

Sometimes a two companies structure might be needed.

Our Solutions:

We have a solution for everything mentioned above, so you can focus on your business.

• Offshore Company Formation in a tax-free jurisdiction accepted by OnlyFans

• Offshore Business Bank Account that accepts payments from OnlyFans.

• International Tax Counseling.

• International Tax Planning and Execution.

• Company yearly compliance management.

Counseling and strategy set up:

• For this specific line of business, we charge a US$500 per hour counseling fee where we advice you and define your structure. 

• All clients must kindly undergo through this counseling and strategy set up first before we can execute the company formation and bank account opening.