Situation: New C Corp in Wyoming or Nevada for a Non resident alien providing online services to US Companies outside the country.
I understand I don't have to pay state taxes
there but I do have to pay federal taxes
(15% if less than 50,000 of taxable income
). Let's say I have this example: I made 7000 usd each month of gross sales. 5000 are expenses to be paid to a foreign contractor (minus withholding
tax of 30% if there is no tax treaty). Now, the rest (2000 usd) has to pay this 15% (300$ as is 24000 yearly, below 50000 tax bracket), so I end up with a profit of 1700.
1. They payment to the foreign contractor, is categorized as Cost of goods sold? Contract labor? others (specifying foreign contractors for example)?
2. The 30% withholding tax for no tax treaty country, is categorized as a dividend, royalty or interest? Is a simple payment but I'm not sure in what category falls to check the IRS publication.
3. How can I pay myself those 1700? Only as a dividend? If I do that, again, withholding tax checking the tax treaty checking the publication right?
4. What happens if to make things simple and avoid more forms, I made a single payment to the outside contractor for 7000 (minus withholding tax) and that's it? The margin is going to be almost the same (due to the withholding, perhaps even less profit) but it's much simpler to arrange things outside US. Will this cause problems with the IRS? All companies that are located outside US have to pay themselves as dividends
or they can use a third party?
5. Do I have to get an ITIN to file the tax forms? or the EIN is enough for a C Corp? I believe I have to get one if I made a LLC company, but a C Corp doesn't need it.
6. If I go through the dividends route, my name (or the person receiving the dividend in case I get a partner) has to be listed as a shareholders? or directors?
7. Last question. I have to file form just form 1120 or also Schedule C 1040?