Finance

Have Finance Questions? Ask a Financial Expert Online.

Ask an Expert,
Get an Answer ASAP!

Finance

| I have couple of questions regarding my current state that

Customer Question
Hi Pearl, | I have...
Hi Pearl, | I have couple of questions regarding my current state that I am right now
JA: The accountant will know how to help. Please tell me more, so we can help you best.
Customer: Where should I post my questions?
JA: Is there anything else important you think the accountant should know?
Customer: Well, a lot to be honest!
Submitted: 1 year ago.Category: Finance
Show More
Show Less
Ask Your Own Finance Question
Customer reply replied 1 year ago
Main Question is which type of business company should I choose and in which state?My current state:
- I am non US citizen (my country has a tax treaty agreement with US), don’t reside in US for more than 20 days per year and I am partner in C-Corp (UTAH based) with an US citizen.Here are my questions:
1. I read that if I were to be paid in dividents from the C-Corp there is no tax deduction so the earnings are likely to be double taxed, once by the corporation and then by the owners, is that correct?Should I then simply provide management services, to the C-Corp, and receive payment in form of consulting fees? In that case, can I use my own Sole Member LLC and use to receive the payments for these services, while at the same time as my country has economic tax treaty with US, I won’t need to file and pay income federal tax, right?
==============================Moving forward I want to have my own personal business that I want to run in these specific scenarios (please read and recommend in which state should I open my company):
2. Consulting, Management Services, SEO Services
3. Dropshipping products from China to USA (Process -> buying traffic off of Facebook -> selling on my own store -> customer from US make a purchase -> I go to AliExpress, pay for the product and ask the seller to send it to my US customer)
4. Affiliate Marketing (promoting either physical or digital products and earn commission from the Affiliate website)
5. Have a supplier in the US, who manufactures the product and ship it to Amazon FBA and I then sell it through Amazon on the US market.
6. Can you recommend a good CPA firm that can manage my future accounting?PS - What I’ve read so far regarding my case scenarios:
http://ustax.bz/non-us-entrepreneurs/
http://ustax.bz/amazon-fba-sellers-your-legal-structure-probably-sucks/
https://www.myusacorporation.com/articles/delaware-vs-nevada-vs-wyoming
https://www.myusacorporation.com/articles/us-companies-for-drop-shipping
http://www.justanswer.com/tax/a0izg-robin-partners-new-llc-will.html
http://www.justanswer.com/tax/8na1b-non-resident-alien-owning-llc-doing-business-us.html
Answered in 4 hours by:
11/17/2016
Financial Professional: TaxRobin, Senior Advisor replied 1 year ago
TaxRobin
TaxRobin, Senior Advisor
Category: Finance
Satisfied Customers: 15,871
Experience: 15 years of experience in financial advising with emphasis on tax issues.
Verified

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Ask Your Own Finance Question
Financial Professional: TaxRobin, Senior Advisor replied 1 year ago

The profit of a corporation is taxed to the corporation when earned, and then is taxed to the shareholders when distributed as dividends. This does in fact create a double tax.

The corporation does not get a tax deduction when it distributes dividends to shareholders. Shareholders cannot deduct any loss of the corporation.

As far as consulting to the C corp you could do that and use a single member LLC which means all income flows to you as an individual. If you are not in the US performing these services you would not be taxed in the US. The C corp could deduct the payments for your services.

Your last section asks about a CPA firm, I cannot advise or recommend a firm to you as that is against JustAnswer policy.

Ask Your Own Finance Question
Customer reply replied 1 year ago
Hi Robin,And thanks for getting back, but your answer is not what I expected.So, to make it clear enough, I am part right now of a C-Corp, but I want to open a company for myself, which may do business like specified in one of these scenarios:2. Consulting, Management Services, SEO Services
3. Dropshipping products from China to USA (Process -> buying traffic off of Facebook -> selling on my own store -> customer from US make a purchase -> I go to AliExpress, pay for the product and ask the seller to send it to my US customer)
4. Affiliate Marketing (promoting either physical or digital products and earn commission from the Affiliate website)
5. Have a supplier in the US, who manufactures the product and ship it to Amazon FBA and I then sell it through Amazon on the US market.What company should I open for myself either Sole owner LLC or what based on the above info.Looking forward to hearing from you
Financial Professional: TaxRobin, Senior Advisor replied 1 year ago

If you want the profit to not be taxed in the US then stay with the entity that is passing all reporting to you as an individual. That would be as a sole proprietor or single member LLC. Both of those in the US pass all profit to the individual and as I stated, if you are not in the US and have no presence in the US you are not taxed in the US.

Dropping from China and not using any US company ti send teh actual goods protects you also form sales tax in the US.

Ask Your Own Finance Question
Customer reply replied 1 year ago
Which state should I form the single member LLC?I read that article that Wyoming is the best option - https://www.myusacorporation.com/articles/delaware-vs-nevada-vs-wyoming , but I am looking for a confirmation.Thanks
Financial Professional: TaxRobin, Senior Advisor replied 1 year ago

I have read those too that say which is the best. I can tell you that most non residents I have dealt with chose Delaware.

Ask Your Own Finance Question
Customer reply replied 1 year ago
Hi Robin,And thank you so far for your support. It's helpful already.1. And again, do you recommend me to create a single member LLC and use it to avoid being taxed in the US?2. Also, do you recommend me being part of the C-Corp with a future LLC instead of me personally as individual?3. So, Delaware over Wyoming at the end, right?Thanks
Financial Professional: TaxRobin, Senior Advisor replied 1 year ago

If you are a shareholder of the C corp you do not change that just by providing services to the C corp.

If you want to have this association with US selling to US person then a sole proprietor or single member LLC would mean no tax for you.

Ask Your Own Finance Question
Customer reply replied 1 year ago
I am a shareholder owning 50% of the C-Corp company, but still haven't taking any money off of it, so this is why I am asking now of what is the best way for me to get paid from the C-Corp?And should I stay as individual in the C-Corp or put myself with my future Single member LLC?Thanks
Financial Professional: TaxRobin, Senior Advisor replied 1 year ago

That is fine and they can pay you if you are providing services but if they pay you dividends that is tax because it is a US corp.

Ask Your Own Finance Question
Customer reply replied 1 year ago
I know I may sound boring, but why do most of your non residents choose Delaware over Wyoming? I am just trying to figure it out.
Financial Professional: TaxRobin, Senior Advisor replied 1 year ago

I never asked them. I do not favor one over the other nor do I advise on one specifically.

Ask Your Own Finance Question
Customer reply replied 12 months ago
Hi Robin,Hope you had a great weekend. I wanted to ask as well, which top 5 US Banks do you recommend for online entrepreneurs?Thanks
Financial Professional: TaxRobin, Senior Advisor replied 12 months ago

I do not and am not allowed to recommend or endorse any specific business. That is JustAnswer policy.

A positive 5 star rating is appreciated so I get credit for the response.

Ask Your Own Finance Question
Customer reply replied 12 months ago
Would mind me asking for a good place where I can form my LLC (website, company or service) if you can recommend one?Thanks
Financial Professional: TaxRobin, Senior Advisor replied 12 months ago

There is a site called Legalzoom that has all the forms.

Ask Your Own Finance Question
Ask TaxRobin Your Own Question
TaxRobin
TaxRobin
TaxRobin, Senior Advisor
Category: Finance
Satisfied Customers: 15,871
15,871 Satisfied Customers
Experience: 15 years of experience in financial advising with emphasis on tax issues.

TaxRobin is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,608 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,218 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,919 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
Have a sub s corp rental properties fully depreciated wish
Have a sub s corp rental properties fully depreciated wish to do a joint venture not a sale or transfer of property.. How can this be done without triggering capital gains? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a looming $3000 in s/t cap gain & 34,000 in l/t cap
I have a looming $3000 in s/t cap gain & 34,000 in l/t cap gains & $100k in cash from stock sales.Best way to reduce the tax. Can't I take l/t gains over time. My income this year's was about 35K. I a… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
723 satisfied customers
My wife has a life insurance policy taken out in 1951 by her
my wife has a life insurance policy taken out in 1951 by her parents. it was from the Worcester county institution for savings in Worcester, ma. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
We are entering into a 5-year lease for our small business
Hello! We are entering into a 5-year lease for our small business and trying to properly account for the leasehold improvements in QB (i.e. architect fees, permit fees, construction costs, and equipme… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I inherited my father's IRAs. I have accounts with Fidelity
I inherited my father's IRAs. I have accounts with Fidelity and Schwab. One of my Schwab accounts is titled Inherited; the other is listed as a Roth. The Fidelity account is listed as an IRA. My quest… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
What is the difference in payments and total interest on a
What is the difference in payments and total interest on a car loan total of $32,000.00 paid off in three years? Interest rate 4.99% vs 2.99%… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
723 satisfied customers
How to negotiate with auto insurance (Progressive) the
how to negotiate with auto insurance (Progressive) the settlement prince on their offer to total my vehicle after the accident. I see only two vehicles of the exact same kind for sale by the dealers o… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,458 satisfied customers
I currently have a 20 year home equity loan....i'm looking
I currently have a 20 year home equity loan....i'm looking to lower the monthy payments doing a refi HARP loan in Pennsylvania...is that possible with no appraisal?… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
723 satisfied customers
I am a 2 person LLC (partnership) with only 2 part time
I am a 2 person LLC (partnership) with only 2 part time employees (15 hours per week each) and wanted to know what would be the best way to contribute to a retirement plan for the owners only?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am an international student in Louisiana. I have been here
I am an international student in Louisiana. I have been here since 2013 and have NOT filed taxes at all. Do I have to wait until next year's tax season to file taxes for all my past years, or can I do… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,458 satisfied customers
I am about to enter a settlement for a sizable amount. For
I am about to enter a settlement for a sizable amount. For this example lets use $200k, 30% will go to my lawyer and 40% to tax leaving about $60k over. The payment will be made to the lawyers trust t… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
723 satisfied customers
How can we use SBA loan or American bank credit to expand
How can we use SBA loan or American bank credit to expand internationally? 1) for same business segments as we have in USA 2) Totally unrelated business segments than we have in USA?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,458 satisfied customers
I at a California S Corp. due to an ERP glitch a large
I at a California S Corp. due to an ERP glitch a large amount of consignment inventory was not recording in our GL. How would I record this inventory now? How will it affect taxes?… read more
taxmanrog
taxmanrog
Master\u0027s Degree
698 satisfied customers
What costs can be capitalized as leasehold improvements? Can
What costs can be capitalized as leasehold improvements? Can architect and engineer fees be capitalized?… read more
Charles Greiner
Charles Greiner
Owner
Bachelor's Degree
2,436 satisfied customers
How can I obtain Oil Pension Checks? I need to know the Best
JING sent me a message from Lombardi Publishing Corporation.… read more
taxmanrog
taxmanrog
Master\u0027s Degree
698 satisfied customers
My daughter has a small Roth 3K.....she wants to get a
My daughter has a small Roth 3K.....she wants to get a "traditional" IRA thru her bank.....Can she have both or must she convert the Roth… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
723 satisfied customers
I need to have my teeth straightened and repaired, it's
I need to have my teeth straightened and repaired, it's $4000 to have it done. I am 59 and this was unexpected but necessary. I have paid half the cost from my HSA, but that's all I have there and nee… read more
taxmanrog
taxmanrog
Master\u0027s Degree
698 satisfied customers
Why would I want to complete my company finance information
Why would I want to complete my company finance information on DnB.com? Seems if anyone I am working with wants to see it, they can contact me. But, I don't see why I would just post it for anyone to … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,458 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x