Quote from: betajuice on April 15, 2022, 06:31:41 PM

https://www.linkedin.com/pulse/texas-saas-cloud-computing-taxable-josh-alballero/

Oh, I didn't know Texas is one of the few states that taxes cloud hosting.

But I don't think this applies to your situation, since the guidance states that "Settling of electronic payment transactions by certain entities" are not taxable. I couldn't find anything saying that crypto mining services are taxable.

There's probably a way you could make it work, such as taking wallet addresses from customers and having the pool mine directly to their wallet.

Quote from: betajuice on April 15, 2022, 06:31:41 PM

So is this sub-corporation issuing securities?

I don't think so, since it would be an S-corporation or LLC with just one shareholder, and the shares are not being publicly sold. The sub-corp wouldn't even have to issue more shares for more investment. The customer could simply write a check to the sub-corp, which I'll then use to buy more equipment. No stock or securities transactions involved here since they already own 100%.

But like I said, I'll talk to an attorney. I don't care what the structure is, as long as the customer can take the depreciation (since I have no use for it) and the parent corp is the exclusive hosting provider.