Its kind of unfair that only big companies can get this sort of competitive advantage while smaller startups are stuck paying taxes through their nose under the draconian tax policies of the US government.
There should be a guide or services for smaller companies and Startups to incorporate in tax shelters so they too can enjoy the tax benefits and thus level the playing field with the big boys. Are there such resources around?
These resources are called tax lawyers, and they are very expensive. The knowledge required to do this is very specialized and guarded with extreme zeal by its possessors. As is usual in any situation involving government regulation, the biggest winners are the lawyers. If you want to get an idea of how complex and draconian these things really are, try looking up PFIC and "controlled foreign corporation".
Its kind of unfair that only big companies can get this sort of competitive advantage while smaller startups are stuck paying taxes through their nose under the draconian tax policies of the US government.
There is nothing preventing you from moving to a country with more favorable tax laws, especially with a business based around the Internet. If your sentence was meant to reference money, well that's something every company goes through in the early stages. At that stage the best you can hope for is to turn a profit and get to the point where barriers to entry kick into effect.
Look into the Belizean IBC (international business company) system. They provide easy registration (fully automated) and you pay nothing but a yearly fee. Belize has become a great location for basing companies, although dealing with banking can be a PITA.
As an example, consider that no matter what interpretation of any tax law you get from an IRS employee, it will not hold up in court - if an IRS agent tells you to do A, then the IRS decides later to disallow A and that you should have done B, they will hit you up with taxes and penalties and you have no recourse.
UNLESS, you pay money for an IRS administrative ruling; then, you can use that response in tax court. The key is that the cost for such rulings are $50K. Each.
There should be a guide or services for smaller companies and Startups to incorporate in tax shelters so they too can enjoy the tax benefits and thus level the playing field with the big boys. Are there such resources around?