These questions are only for LEV. If you are not LEV then please forward the questions to him. Thank you.
LEV I saw your previous answers and I hope you can help. Please I need someone, who knows well USA and Ireland taxes and laws.
I'd like to ask about US/IE taxes and company structure if possible.
I'd like to ask few questions about taxes and company structure if possible.
First a little about me and my business:
I'm 46 years old single male, resident of Ireland. I'm also working in Dublin City Univercity. English is not my native language.
First phase of my business will be internet sales
to US market and for this I've formed US LLC
in Delaware few weeks ago. I also have Ltd company in Ireland.Now I want to set up proper company and tax structure, to have all taxes and income
well organized on good foundation from the very beginning, to have peace of mind in future to do business many years. Please here I'd like to have your help and advise.My business plan is simple (drop ship) model, I'll have 2-4 specific websites, example for handbags, I will buy products I want to sell from wholesale suppliers(mostly from China at the beginning) for my money with wholesale prices, products will stay in suppliers warehouse, if customer makes order on my website with my prices, I'll tell to supplier to send out one of my items to the customer.
I will fund my account in US bank from my earned money from Ireland at the beginning. I'll send my money to US company account, then I'll buy products, pay for marketing campaigns and website outgoings, then I'll get money for sales and have profit, then I need to buy more products, turn it around as much as I can, then on some point I need to calculate income and outgoings, then pay taxes to US, then I need to bring profit home to Ireland, pay for my outgoings here in Ireland, calculate taxes for in ireland.My market and business will be in US only (all states
). (I think best is to exclude Delaware.)
* I'm Irish resident and I'm also working, from where my main income comes at the moment and from where I'm paying all taxes in Ireland.(in Ireland we have 20% personal income
tax and over 33000€ a year it goes to 40%)
* Now I have set up LLC in Delaware as non US resident person on my own name for US eCommerce business.
* First phase In US I will open 2-4 eCommerce discount store websites under my US company for US customers. At the beginning my sales will not be very big around $10,000 a month and items for sale are around $5-$45 (accessories, clothing and so on).
* So in US I'll have only websites, marketing and moving products and money, all is done online. No warehouses, no physical office, or anything in US. Except Bank account and Virtual business address.
* I also own Irish Ltd. company for my EU startup eCommerce business.Now my questions are:
1. How is best to structure my company and taxes long term view in mind? Any information is helpful to get full picture together, how it must be tone?2. When, what taxes to where I need to pay and how much?3. Tax as LLC or Corporation, which one is better for this business model?4. Is it better to register the US LLC under Irish Ltd to optimize taxes?4. Does it matter in what state I will open Bank account, Virtual business address to avoid nexus? If it is important in what state is better to open virtual address and bank account?As I understand for US income I need to look next US taxes: corporate, personal
, nexus, sales, withholding
tax. In IE I need look for US income, Corporate and personal tax
Simply put In US: IE:Corporate tax
US Personal tax US Corporate tax IE Personal(single)
50,000 15% 10% $9,275 12,5% 20% 0-33800
75,000 25% 15% $37,650 40% 33800
100,000 34% 25% $91,150
335,000 39% 28% $190,150
10,000,000 34% 33% $413,350
15,000,000 35% 35% $415,050
18,333,333 38% 39.6% $415,051+
18,333,333 35%I do not know am I on right path, at the moment I can see tree scenarios:Lets say, may taxable income
is $100,000.Option 1.
Non US Irish COMPANY owns US Corporation or LLC Taxed as corporation in US no physical presence in US, I'll pay corporate tax in US and corporate tax in IE and personal tax in IE (there should be tax thready between US and IE. Do I need to pay US or IE corp tax or both? I think only IE corp tax.
So 100,000 - corp IE tax 12,5%$12,500 - pers IE tax 40%$35000 = I have $52,500 leftOption 2.
Non US Irish RESIDENT owns US Corporation or LLC Taxed as corporation in US no physical presence in US, I'll pay corporate tax in US and personal tax in IE
So 100,000 - corp us tax 39%$39,000 - pers IE tax 40%$24,400 = I have $36,600 leftOption 3.
Non US resident owns LLC Taxed as LLC in US no physical presence in US. I'll pay only personal tax in IE.
So 100,000 - pers IE tax 40%$40,000 = I have $60,000 left