Setting Up A Company - When Already Employed

[bendix]

So here's my situation - can anyone give me some thoughts on the right way to handle this.

I've recently negotiated a great deal with my employer to effectively only work three days a week. I'll be moving to Hua Hin and telecommuting, although I'll still be travelling around Asia quite a lot as part of this gig. Furthermore, the company will maintain my work permit.

Now, here's the rub. I've since been approached to do some consulting assignments for other companies here in Thailand. While I was planning to use the 3-day a week arrangement to have a change of pace, I'm now tempted to think this might be a good lucrative move and am sorely tempted to to pursue this in my 'relaxed time'. The type of assignments I'm looking at are six-figure projects, with the possibility of some longer-term retainer arrangements.

So can I have my cake and eat it? Can i continue to be officially employed, and also start to build up a consulting portfolio (there are no conflict issues)?

I think another TV member recently moved into consulting (was it samran?). What are the implications for structuring such an arrangement?

Will I need to set up a company to do this, or are there other arrangements? I want to minimise my tax liability.

What about my work permit? Would I need two, one for my employer one for the other arrangement?

If I set up a company for the consulting work, what's involved? Can I use this to minimise my tax somehow? I'm currrently buying a car - can i deduct part of the expenses of that as a business expense? Can i reduce 'profit' by employing my wife in some capacity, even as a director?

Any thoughts guys?

[Chang_paarp]

I am sure one of the resident legal eagles or Sunbelt will be able to correct me if I am wrong here.

To do this legally, you will need to start a ฿2m company, make your wife and yourself controlling directors. The company can then employ you and add to your work permit. (You can have more than one employer). The company can buy the car that you will use for business purposes, or if you have already purchased it you can transfer as part of working capital or sell it to the company. You will have to pay tax on the % that is personal use over a certain % of use (log books). You will be paid a salary, as can any other employee of the company (does your maid clean the office?) remember to declare these people and pay the appropriate taxes. At the end of the day the company will make a profit and pay taxes on this. Remember to have regular board/directors meetings, these need not be in the stuffy office of your lawyer, some better suggestions are 5star hotel suites in interesting parts of the world, don't forget to take minutes of the meeting and file them with your annual report. So long as the company is active and paying taxes you are a legal entity.

Also check with the current employer that they do not have a problem with this extra-curricular activity.

On the other hand if you consulting is done "offshore" you want to negotiate that you are paid direct into an appropriate account.

BTW if you are an Aussie or Kiwi look at the APEC card to ease you way through immigration lines at the airports. Look here for more information.

[JRed]

Bendix,

Been a while since we were in touch!

Just sent you a message with a couple of ideas.

Best, JRed.