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Delaware LLC pay 35% tax how can it be offshore?

fxmaster

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Jun 25, 2016
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I have just read that a Delaware company that is created by help of Stripe.com/Atlas has to pay 35% state tax from all earnings. Since I will receive all my money from Stripe and they have registered the company and they are in control of it I can't do much other than pay the tax that has to be paid.

Now I wonder how can a Delaware company be considered offshore when it has to pay 35% state tax?

Also, beside the tax I have to pay in the states I will also have to pay tax in my country when I take home the money so that means maybe 15 or 20% is left in total how can I run a business that way?
 
I have just read that a Delaware company that is created by help of Stripe.com/Atlas has to pay 35% state tax from all earnings. Since I will receive all my money from Stripe and they have registered the company and they are in control of it I can't do much other than pay the tax that has to be paid.

Now I wonder how can a Delaware company be considered offshore when it has to pay 35% state tax?

Also, beside the tax I have to pay in the states I will also have to pay tax in my country when I take home the money so that means maybe 15 or 20% is left in total how can I run a business that way?

I think exactly the same thing than you. And in order to see whether i was dreaming i have found the documents from the IRS which mentioned that corporate tax should be paid on income from the US
https://www.irs.gov/pub/irs-pdf/p519.pdf

I have wasted 1500 dollars because of that. You remind me that i have to dissolve my US company. Thank you for that.

I think that people considered Delaware company be an offshore company for all income that are not originated from the US or delivered from the US.

I am sorry i even don't want to elaborate on "setup" because the US market is so big so that when you start to have customers in the US. That's it you are liable to tax as long as you have a US company.
 
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ha ha - no indeed not but it's still better than Trump
trump.jpg


Here is how the taxation rates are for Delaware corps. Delaware State Business Income Tax | Nolo.com
 
I questioning that too? Do you mean that they can avoid to get taxed in the US for income in the Belize corp?

In fact, the IRS is pretty clear, wherever you are, if you have a US company, your US source income are taxable. For sure, a Delaware company owned by a non US resident can bill a non US citizen and it will lead to no corporate tax but USA is such a big market.

Plus, opening a bank account in the US is like opening a bank account in the belly of the beast.

Setting up something with a US company in front to collect money whatever the technique (franchise, royalty) is i think quite risky.
 
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In fact that would be offshore, for those who have customers outside of USA ONLY and Products & services sold from outside of the USA ONLY.

Then, in this case, the corporate tax would be 0%

BUT if:

  • You have US customers and a product sold from Europe, you must pay 30% on your profit to the IRS
  • You have US product or service sold from the US with US or EU customers you have to pay the progressive tax.
source is here:
Publication 519 (2015), U.S. Tax Guide for Aliens

Non US residents with a Delaware company and an offshore bank account may receive in 2017 notifications to pay their tax to the IRS.
 
In fact that would be offshore, for those who have customers outside of USA ONLY and Products & services sold from outside of the USA ONLY.

Then, in this case, the corporate tax would be 0%

BUT if:

  • You have US customers and a product sold from Europe, you must pay 30% on your profit to the IRS
  • You have US product or service sold from the US with US or EU customers you have to pay the progressive tax.
source is here:
Publication 519 (2015), U.S. Tax Guide for Aliens

Non US residents with a Delaware company and an offshore bank account may receive in 2017 notifications to pay their tax to the IRS.
I cant see your link due to it is broken. I thought that you had to pay taxes only if you had customers in Delaware, not in the US. Can you check it?
 

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