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EOODDigital Products Seller

Single-Member Limited Liability Company (EOOD) in Bulgaria — Digital Products Seller Formation Guide

Focus on jurisdictions that support global payment processors. If selling to EU customers, consider how the jurisdiction handles VAT OSS (One Stop Shop). US LLCs are popular for accessing Stripe, while UK or Estonian companies offer great European integration.

Last verified: June 13, 2026

Corporate Tax

10.0%

State Tax

0.0%

Formation Cost

$30

Annual Fee

$16

Forming a Single-Member Limited Liability Company (EOOD) in Bulgaria as a Digital Products Seller means a total tax burden of 10.0% and an official formation cost of $30. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.

First-year total cost

$2,060

Ongoing (per year)

$1,400

Detailed cost calculator →

Why Single-Member Limited Liability Company (EOOD) for Digital Products Seller?

Entrepreneurs selling non-physical goods such as software, e-books, online courses, templates, and digital art. This business model requires a jurisdiction with excellent payment gateway access (like Stripe or PayPal) and clear rules on digital VAT/Sales Tax.

Ideal for

  • E-book authors
  • Online course creators
  • Software and SaaS developers
  • Digital template designers

Challenges to watch

  • Managing global VAT and sales tax compliance
  • High chargeback rates for digital goods
  • Intellectual property protection across borders

Key decision criteria

  • Access to Stripe, PayPal, and other major payment gateways
  • Tax treaties to avoid double taxation on royalties
  • Ease of remote company management and banking

Estimated breakdown (based on avg. $60,000 revenue)

Gross Revenue$60,000
Corporate Tax-$6,000
Formation Cost-$30
Annual Fee-$16
Net Profit$53,954

Simulate with your own revenue →

VAT / Sales Tax

Standard rate 20%. Registration threshold: 51,130 EUR. Foreign providers of digital services to Bulgarian consumers must charge 20% VAT, which can be reported through the EU One-Stop Shop (OSS) scheme.

Single-Member Limited Liability Company (EOOD) formation steps

1

Choose and reserve a unique company name with the Bulgarian Commercial Register.

2

Draft the Founding Act (Articles of Association) and standard management declarations.

3

Notarize and apostille the Power of Attorney and specimen signatures in your home country (if forming remotely).

4

Courier the original apostilled documents to your legal representative in Bulgaria.

5

Open a capital accumulation bank account and deposit the minimum share capital of 2 BGN (1 EUR).

6

Submit the incorporation documents and pay the state filing fees to the Bulgarian Registry Agency.

7

Obtain the Unified Identification Code (UIC/EIK) upon successful registration (usually within 3-7 days).

8

Register for VAT (mandatory if turnover exceeds 100,000 BGN or for intra-EU B2B services) and open an operational corporate bank account.

Digital Products Seller FAQ

Do I need to charge VAT on digital products?

Yes, in many jurisdictions like the EU, UK, and parts of the US, you must collect VAT or sales tax based on the customer's location, regardless of where your company is incorporated.

Which country is best for a digital product business?

The US (Wyoming or Delaware LLC) is excellent for Stripe access and low maintenance. Estonia (OÜ) is ideal if you want to keep profits in the company tax-free and need EU market access.

Can I run this business as a digital nomad?

Absolutely. Digital product businesses are location-independent. However, ensure your chosen corporate structure doesn't trigger tax residency issues in the country you are temporarily living in.

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