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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 13482
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I need to receive $250,000 in payments for art/furniture I

Resolved Question:

I need to receive $250,000 in payments for art/furniture I have found in Europe. Considering my clients are in Connecticut, Miami, and Los Angeles, and I am living in Europe as an American citizen, what is the best option for me to receive the funds with the lowest tax burden. I will need to receive the funds into a Euro account in the United States, and from that account pay the merchants/collectors in Europe for $200,000 of merchandise, leaving me with $50,000 (I am willing to having a new bank account opened to my self as an individual or use my already existing C-Corp in Delaware or to create a new LLC anywhere in the United States) Also I have been told that using a legal firm to receive the funds in an escrow account is possible, to which my buyers would pay into and vendors receive funds from. What is my best option?

Thank You
Submitted: 1 year ago.
Category: Finance
Expert:  Megan C replied 1 year ago.

MyVirtualCPA :

Hello, how are you today?

MyVirtualCPA :

Your best option would be to set up an LLC for yourself, with an LLC bank account, and receive the funds and make the payment out of this account

MyVirtualCPA :

That way, you are left with the profit which you can easily show at tax time

Customer:

Hi

MyVirtualCPA :

Hello

Customer:

where is the best place for recieving funds without being open to the state tax

Customer:

in my case

Customer:

that i dont even live out there any longer

MyVirtualCPA :

Well, if you are are a resident of a state, you will have state tax regardless of where you open the account

Customer:

So if I open my llc account in Florida, I will be open to state tax on just the 50,000 remaining for the art consultancy

MyVirtualCPA :

There's no state tax in flordia

MyVirtualCPA :

florida

MyVirtualCPA :

And yes, if state tax were due it would be due only on the $50,000 fee not the entire $250,000 payment

Customer:

Is there a way I can make an new llc and bank account in florida from Europe or will I need to go to Florida to do this

Customer:

?

Customer:

I need it fairly quick

MyVirtualCPA :

You should be able to do this since you are an American Citizen online...

MyVirtualCPA :

The hardest part will be opening the bank account because of all the patriot act laws

Customer:

Yes but what is the fastest way to do this, if I give power attorney to my uncle to sign on my behalf?

MyVirtualCPA :

That may work quickly as wll, yes

MyVirtualCPA :

Is there anything else you need assistance with today?

Customer:

Yes, just to summarize, so if I opened an LLC in Florida with a bank account in Florida, and received the full 250,000 on that account, and I made a payment of 200,000 to europe, remaining with 50,000, the tax's would be 0?

MyVirtualCPA :

For state, the tax would be 0 you would still owe federal taxes

Customer:

Which is?

MyVirtualCPA :

What type of income do you have now?

MyVirtualCPA :

It depends, filing status and how much income you have

Customer:

I dont know

MyVirtualCPA :

I would need to know those things before telling you how much tax would be

Customer:

Dont you think its easier having a legal firm open an escrow account for me to recieve and transact from

Customer:

?

Customer:

considering im in italy at the moment

Customer:

so I can have the client pay me there?

Customer:

already

Customer:

?

MyVirtualCPA :

Well you will still owe the tax. You could still do that if you wanted to...if you found a legal firm to do that. It might be quicker, but you could still go the LLC route too

Customer:

Do you think that I could create an LLC in one day and then have my uncle (lawyer) sign for me in regards XXXXX XXXXX the bank account? This would be fast but I am not sure if it can be done? Considering a large firm in America could open probably an escrow to receive funds into fairly quickly

MyVirtualCPA :

No, you could not do it in one day

MyVirtualCPA :

You're looking at a few days

MyVirtualCPA :

But if you have an uncle lawyer I'm sure his firm could turn around and open an account in one day

Customer:

Yea just he isnt in a big firm

Customer:

unfortunately.. :..(

Customer:

I think only large firms can do this

MyVirtualCPA :

You wouldn't have to be a big firm to open an escrow account

MyVirtualCPA :

But, I am sure you could find one to do it, there will just be the additional cost of having them do this for you

Customer:

Awesome

Customer:

Your great, thank you for all the help

MyVirtualCPA :

You're welcome. If satisfied, please rate as "excellent" so that I may receive credit for assisting you today

Customer:

Wonderful

MyVirtualCPA :

Thank you for your positive rating. Please come back and visit MyVirtualCPA for any of your needs. It was a pleasure working with you today

Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 13482
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Megan C and 4 other Finance Specialists are ready to help you
Expert:  Megan C replied 1 year ago.
Hello, Luigi,

When you rated, it did not stick. So, if you would, please rate my response again, so that I may receive credit for assisting you today. I apologize for any inconvenience this may cause.

Thanks!

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