C Corporation - TAX Question - Non US Resident -

[Jen Paseu]

I have registered a business in the US. It is a C-Corporation. I am from the Maldives and all the business operations take place in the Maldives. The business is owned by right now 80% share ownership and remaining 20% to be issued later.

So why did i register in the USA?
Answer: Because in the Maldives, Stripe and Paypal does not work. So as i have planned to expand, i created a C-Corporation (using STRIPE ATLAS), to get EIN. The C-Corp is registered in Delaware. By doing this i will be able to register a Stripe and Paypal account in the USA which can be used to receive payment from clients in other countries (Australia).

What kind of services do i provide?
Answer: I provide Website Development and Graphics Designing solutions

Do i have any physical presence or employees in USA?
Answer: No

Question 1: Should i pay any TAX to the USA

Question 2: What are the taxes i should pay and percentages

Question 3: What are the fees to be paid each year for a C-Corp

Question 4: What is 83-B Election and should i file it. And any other important heads up notices

The C-Corporation was formed in Delaware just 2 weeks ago. Why did i form a C-Corp, because STRIPE recommended it and my tiny brain trusts Stripe.

 

[Sols]

If you incorporated through Stripe's Atlas service, they will help you with all this.

 

[Jen Paseu]

Brother they dont. The only help with incorporation of the business. After that they ask to get a lawyer. I was under the impression that a C-Corporation that provides the services i provde has to pay no taxes in USA as there is no physical presence and non of my business activities take in USA.

 

[Sols]

US tax code is complicated, so if Stripe aren't helping you, you should find another CPA/accountant to sort things out.

Without knowing the full scope of your business (nor do I want to, that's for an accountant to help you with)

1. Yes, maybe. As mentioned, US tax code is complicated and you will get different opinions from different people. Whatever strategy you choose, make sure you discuss it with an accountant.
2. Federal tax is 27% but then you have to factor in state and local taxes, which for a typical Delaware C corp is 0%. So you need to pay 27%+0% on your taxable income. Your goal is to lower the taxable income or figure out a way for your income to not be taxable in the US at all, which is what your accountant should be doing for you.
3. Corporate Fee Schedule - Division of Corporations - State of Delaware
4. 83(b) Election

Hire an accountant.

 

[Jen Paseu]

Thank you so much for your insight and time Sols! Very grateful.

US tax code is complicated, so if Stripe aren't helping you, you should find another CPA/accountant to sort things out.

Without knowing the full scope of your business (nor do I want to, that's for an accountant to help you with)

1. Yes, maybe. As mentioned, US tax code is complicated and you will get different opinions from different people. Whatever strategy you choose, make sure you discuss it with an accountant.
2. Federal tax is 27% but then you have to factor in state and local taxes, which for a typical Delaware C corp is 0%. So you need to pay 27%+0% on your taxable income. Your goal is to lower the taxable income or figure out a way for your income to not be taxable in the US at all, which is what your accountant should be doing for you.
3. Corporate Fee Schedule - Division of Corporations - State of Delaware
4. 83(b) Election

Hire an accountant.

 

[fshore]

A US c corporation is always taxable in the US.
You can reduce the taxable profit by taking a salary that is not taxable in the US.
Also keep in mind that PayPal requires a ssn for the account even you have a ein.

 

[Jen Paseu]

Fshore, im creating through Stripe right now as Paypal does not allow to create without an SSN.

I was under the impression actually that if no business activities take place in the US there would be no Tax.

 

[fshore]

I was under the impression actually that if no business activities take place in the US there would be no Tax.

Wrong impression.

You need to file 1120 tax return yearly, you probably want that done by a CPA. It normally costs around $1000 for a CPA to do that.
You also have the company registration and agent fees.

Also I believe stripe atlas doesn't give you a bank account anymore do they? You might have to open one in person in USA yourself.

 

[Traveler]

I was under the impression actually that if no business activities take place in the US there would be no Tax.

You might be confusing LLC and C-Corp. With an LLC, what you're saying may indeed be the case, subject to certain limitations. That's because a (single-member) LLC is treated as a "pass-through" entity, so it's not taxed at a corporate level, but at a personal level instead. With a corporation, there's no such possibility.

 

[Jen Paseu]

So these are things i should be doing;

1. Hire a CPA at the end of the year to do Tax Return yearly?
2. Company registration and Agent fees. May i know what you are referring to by the agent? (Like the person who will be paying the fees for me)?

And regarding stripe, they charge USD 500 + some other small fees for opening a bank account along with the business. We can choose Silicon Valley Bank.

Dear lord, what am i getting myself into. hehe, Thank you guys very much for your help!!!

 

[Davis123]

You might be confusing LLC and C-Corp. With an LLC, what you're saying may indeed be the case, subject to certain limitations. That's because a (single-member) LLC is treated as a "pass-through" entity, so it's not taxed at a corporate level, but at a personal level instead. With a corporation, there's no such possibility.

I think this was changed by Trump earlier. Please verify it with a US CPA first. They are charging a lot of taxes on these single owned LLCs these days.

 

[fshore]

I think this was changed by Trump earlier. Please verify it with a US CPA first. They are charging a lot of taxes on these single owned LLCs these days.

If you don't know what you are talking about then it might be a good idea to rather not say anything.

 

[Davis123]

If you don't know what you are talking about then it might be a good idea to rather not say anything.

Dear I am sorry but I was told by a US cpa not to make those LLCs anymore so I kept away however sometimes I find CPAs incorrect. If it's good then I am glad I found someone correcting me. Thanks.