Business registration for Altcoin/Bitcoin farm?

[LTCbusiness]

Hey guys, so with the surge of LTC price, I have more than enough fund to start my own mining farm business, my 80 L3+ are coming on July and I am very excited, I know it is risky considering the upcoming difficulty, but since all the capital came from the trading profit I made with LTC, it is like risk free business for me. However I have a question which is pretty important but I can not find any real answers on Google. With the size of my farm, should I register as a company? Considering these pros/cons:

Pros:
1- Peace of mind, no need to worry that someday the government will close my farm for unregistered business operation, and easy to expand my farm size in the future.

Cons:
1- Bitcoin is not accepted as a currency, as well as they do not incentive people to trade or store bitcoin, but it is not prohibited, so it maybe hard to have the business license
2- The heavy tax for business profit, it is about 20%.

Just for reference, my electricity rate is about 0.085$/kwh, my renting fees is free since I use my own warehouse.


Thank you so much for your help.

[zij]

It really depends on what country you are in - as each country has different requirements.

In the UK/England running the farm through a company means you have more flexibility about minimising (but keeping legal) taxes.

[un4given]

what the previous poster said - strongly dependent on the country
get some legal advisor or search the web for examples from your country.

In Some countries of the EU, for example, doing mining is not necessarily leading to having an enterprise you need to register, its all about the total income you get per year from all activities.

On the other side, coins you are generating, if you hord them and keep for a year and sell after a year - its is tax free, under a year you need to pay taxes as if you have sold an asset

If your register a firm, you need to do the calculations to prove your tax authority what you are doing (if they check) but energy and hardware cost will be automatically booked as spending and shortening your net revenue.

Mining itself is defined as a business, since you are doing it for a longer time with the aim to earn money.

[LTCbusiness]

Dude, I really appreciate your information, I did not know that if I keep the coin for more than 1 year, it could be tax free, it could be no-brain deal if it can be applied in my country since I have cash flow from another business so I do not need much cash within 1 year.

[zij]

Dude, I really appreciate your information, I did not know that if I keep the coin for more than 1 year, it could be tax free, it could be no-brain deal if it can be applied in my country since I have cash flow from another business so I do not need much cash within 1 year.

Again, this "it could be tax free" depends on the country..  The UK doesn't have anything like that as far as I am aware..

[alani123]

No such thing as risk free business. You could press the button and cash out profits as the price is high and worry about investing it later. The fact that LTC is at an all time high makes it unlikely that the price would rise much further, especially gien how much it's risen so far.

On your question though, it all would depend on jurastiction. But the usual practice would be to state whatever the value of your crypto funds would be at the time of doing taxes and filing for paperwork. Do contact an accountant for advice on the issue though.

[Vaccinus]

better to not claim anything in some country you will have to pay very high tax like 50%, that is a huge loss, on the other hand if they caught you you will pay much more, but it's a risk that i'll take, just don't convert in fiat and you should be fine for the time being, or use method to exchange in fiat that are anonymous, like exchanging for usd or euro in real life