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Please read this post See this post. If we incorporate as

Hello,Please read this postSee this post. If we incorporate as LLC in Delaware, we will not require to pay any taxes neither from sales to US Customers nor from international customer. Please confirmPakistan is also in tax treaty.http://www.webhostingtalk.com/showthread.php?t=331329Our company operation office is in Pakistan. Our company is also incorporated in Florida as LLC. We are currently using 3rd payment processor who transfer payments to our Pakistani bank on monthly basis. Now we are looking for actual payment gateways for payments.We sell software to international and US customers bothI also have 5 year multiple USA visa.Now here is something which I want1. Our monthly sales average is US$ 20,000 per month.2. I want to open bank account with my company name3. After every 15th days, I will wire transfer from US bank account to Pakistani bank account which is deposited in this 15 days.4. Will there any taxes involved? We are paying taxes in Pakistan and don't want to pay multiple taxes5. How this all work after my visa expire?Thanks

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

 
16,384 satisfied customers
I plan to open a LLC in USA where operation of the business

I plan to open a LLC in USA where operation of the business will be handled offshore. One option is to set up LLC as a single person LLC and show all the expenses and profits of my India Partner as expenses of LLC. This will keep obviously keep it simple but may increase tax liability as all profits will pass on to my personal tax return. I am expecting profits to be very small in the beginning.Another option is to set up LLC as multiple partners (me and offshore partner). Multiple partner LLC would be more complex than one partner LLC especially because offshore partner will be involved.I know that LLC can be created with multiple partners. I wanted to seek your help in guiding me with pros and cons of these 2 approaches and a recommendation.

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Lev

Retired

Bachelor's Degree Equivalent

 
24,192 satisfied customers
There, First off, my apologies wall of text

Hi there,First off, my apologies for the wall of text but I like to sketch the situation as detailed as possible and really, I have never received a clear or accurate answer to this, not even from my local accounting firm(which has international connections in the US).Here's the case:In late 2015 I have registered a single-member LLC in Delaware as a non-resident(I am from Belgium). The reason for this is that I did plan to only sell to US customers + set-up costs for a company over here are way higher.For the past 5-6 months I have been selling physical products on Amazon(US).The process is pretty much this: my US supplier manufactures the goods, ships them to one or multiple Amazon fulfillment centers/warehouses, then ships the customer who has made an order on the Amazon platform.In other words, I never get to see the products myself.For the past few months, I have been in contact with a local (Belgian) accounting firm.Unfortunately, as I am such a small starter and haven't turned profitable yet, they seemed to put me on the side and in the dark for pretty much this entire period of time.When they did contact me a few days ago, the only thing they could tell me was that I would need to pay income tax in the US, and not Belgium(contradicting what they initially had told me weeks/months ago).What I was wondering really, as I am a Belgian resident with an US LLC things get MUCH more complicated than it seemed at first hand. The accounting firm just gave me a two possible outcomes/quotes that he still needs to figure out himself:outcome 1: If there is no permanent establishment and no state nexus then he will probably charge me $3000 for the Federal protective tax return and treaty based return disclosure in this first year, and $1500-$2000 each year thereafter.outcome 2: if there is no permanent establishment BUT a state nexus(which I'm guessing it is as I have physical products stored in Amazon's warehouses), then this would immediately means a fee of AT LEAST $8000.Here was the full email that the collegue sent to my accountant in regard to getting my single member LLC's administration in check:"I think that a short memo outlining the key US Federal income tax issues (including an introduction to State taxation) should cost approximately $3,500. That assumes that the enterprise will undoubtedly constitute a permanent establishment. If this is not a clear case and we need to analyze whether or not the LLC constitutes a PE, the fee should increase by $2,500.We should also review whether the LLC creates a taxable presence (“nexus”) in particular States (be it for State income tax or for sales & use tax purposes). The fee for an in-depth State nexus analysis would need to be discussed with our State & local tax (SALT) team.Going forward, I would anticipate tax compliance costs to be as follows:Alternative 1: no PE in the US, no State nexusFederal protective tax return and treaty based return disclosure: $3,000 in year 1; $1,500-2,000 in subsequent yearsAlternative 2: no PE in the US, but State tax nexus (incl sales/use and income tax)Federal protective tax return and treaty based return disclosure: $3,000 in year 1; $1,500-2,000 in subsequent yearsPro-forma Federal tax return (as basis to determine Federal taxable income for State tax purposes: $3,000 - $4,000State income tax returns: $800 - $1,000 per StateState sales & use tax compliance: TBDAlternative 3: PE in the USFederal tax return: $3,000 - $4,000State income tax returns: $800 - $1,000 per StateState sales & use tax compliance: TBDBest regards"My questions:- Are these the effective costs that I will need to pay to be fully compliant with the laws and legal side, as a non-resident single member LLC? I have spoken to a few LLC owners(including non-residents) over these past few months, and never has someone mentioned something of this scale...- Where would my business have a 'Nexus', just in the states where my product are/were stored or in every state that a customer has ordered from?- I've gathered from other sources(not my accountant) that I would need to do the following; "since the single member owner is a foreigner, you file 1040NR and W8-BEN and the withholding tax is 30%." Is this accurate?Not even my accounting firm seems to know exactly what they should do, so I'm feeling a bit lost and helpless here...PS: I have an 'official' address in Florida through MyUS.com, so I can receive letters/mail/packages.

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Lev

Retired

Bachelor's Degree Equivalent

 
24,192 satisfied customers
I live in Australia. I have an LLC in the US. The LLC company

I live in Australia. I have an LLC in the US. The LLC company has a US bank account. The business i have is 100% selling online products through Amazon.com. At the moment i am paying tax in the USA and the tax return in Australia shows nothing owing. I don't have any physical presence in the USA, by that i mean i don't have an office or staff. I run the business 100% from here in Australian home office.If i set up an Australian company with US bank account for this same business, can i do my tax all in Australia. I am trying to get out of having to do the tax return in the USA if possible.

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Lev

Retired

Bachelor's Degree Equivalent

 
24,192 satisfied customers
We are a canadian hotel and a US company used our facility

we are a canadian hotel and a US company used our facility for rooms and banquet services. do we have to fill out a W 8 form for our US customer JA: We'll do all we can to help. Please tell me anything else you can so the Accountant can assist you best. Customer: We are a Canadian corporation with no offices in US and our US resident customer is asking for a completed W8 form which we are not familiar with. I have printed one from IRS online but it is confusing in the sense that it's hard to mdeytermine if it applies to our situation JA: I dread doing my taxes every year even though they are straightforward. You doubtless need our expert to sort you out then you'll feel so much better. Is there anything else important you think the Accountant should know? Customer: No at this point I am wondering if this W8 reporting applies to our type of business transaction in general . Thanks JA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and then connect you two. I'll let you know when it is your turn.

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Robin D.

Vocational, Technical or Trade School

 
20,340 satisfied customers
There! So, a bit of a backstory: I run a Delaware LLC,

Hi there!So, a bit of a backstory:I run a Delaware LLC, with a grand total of two members. Both members (myself included) are Swedish citizens.We are a web hosting company, serving customers from both the U.S. and many other countries.Our estimated annual income at the moment is $11 600 per year, with expenses upwards of $8000/year.Customers pay us through two methods:a) PayPalb) Stripe (Credit Cards) which are transferred to a Swedish bank account.The question:From all my reading (U.S. Tax laws are very confusing to me as a foreigner), I have gathered that we should not be liable to pay the I.R.S. any sort of income tax, as the LLC itself is not a taxable entity, and its members are not American citizens whereas they can't report income tax.I have however heard opposing stories as well, and now wish to confirm this.Is the Delaware Franchise Tax of $300/year the sole fee we are eligible to pay, or is there another level of tax we need to pay? If so, to where, when and are our expenses deductible? What level (percentage) of tax would this be?Finally, thank you for your help with this extremely confusing subject!

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Lev

Retired

Bachelor's Degree Equivalent

 
24,192 satisfied customers
I have a question about withholding on payments made

Hello I have a question about withholding on payments made to a foreign person JA: Thanks. Can you give me any more details about your issue? Customer: sure One of my customers who is from mexico buys out products and sells them in the Mexican market. We are in discussion with them about their making a trip to the US to sell our products to customers here instead of the current supplier - customer relationship we have with them now they would be selling on our behalf and receive a commission on sales JA: OK got it. Last thing — Financial Professionals generally expect a deposit of about $18 to help with your type of question (you only pay if satisfied). Now I'm going to take you to a page to place a secure deposit with JustAnswer. Don't worry, this chat is saved. After that, we will finish helping you.

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Lev

Retired

Bachelor's Degree Equivalent

 
24,192 satisfied customers
What are the duties and excise taxes, etc (all costs), of

What are the duties and excise taxes, etc (all costs), of importing goods from China? I'm in California. Is it cheaper to chose one port over another? Or just go with the nearest port to receive the goods, because the costs are the same?

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Robin D.

Vocational, Technical or Trade School

 
20,340 satisfied customers
I am a nonresident alien, my business will be run from

I am a nonresident alien, my business will be run from Poland and I do not have any permanent establishment in the US. I will be selling physical products to US customers on Amazon.com. However, my products will be stored in Amazon's FBA warehouses in various states. I have learned that these do not create permanent establishment since I do not own them and use Amazon's services instead.https://www.reddit.com/r/Fulfi… - according to the IRS, FBA warehouses do not create a permanent establishment under the US-Canada tax treaty. The article referring to permanent establishment says the same as the US-Poland tax treaty.http://www.salestaxsupport.com… - according to this article written by a sales tax expert, FBA warehouses do not create a permanent establishment, however the aforementioned warehouses require foreign sellers to comply with the sales tax laws of each state where my goods are stored. I'm aware of the sales tax situation and I will apply for a sales tax permit in each state with an FBA warehouse.I'd like to know your opinion on that.Also, since my income will be taxed in Poland, shall I file some form to the IRS to inform them about this?Am I also exempt from state taxes? I'll probably have my single member LLC set up in the state of Delaware since I have found a reliable company that will help me with the process of establishing it.

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Lev

Retired

Bachelor's Degree Equivalent

 
24,192 satisfied customers
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