Finance

Have finance questions? Ask a financial expert online.

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

I am looking to start a C Corp in Delaware. I would like to…

I am looking to...

I am looking to start a C Corp in Delaware.

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

I would like to understand the taxes that are involved.

Accountant's Assistant: Is there anything else important you think the Accountant should know?

Internet business selling golf coaching services online.
Internet platform selling golf coaching services via golf coaches in the US to their students. We collect the money from the students and then pay the coach at the end of the month.
Typical fees would be, student pays $150 per month and we keep $20 and pay the Coach $130
Based in South Africa and owned by a South African business
No office, employees or anything else in the US
Sketch me a picture of my tax obligation in other words all taxes that I would be liable to pay in the United States and when I would be liable to pay them.

Show More
Show Less
Ask Your Own Finance Question
Answered in 33 minutes by:
10/18/2017
Lev
Lev, Tax Preparer
Category: Finance
Satisfied Customers: 32,955
Experience: Personal Investment, Tax Preparation
Verified

That will be an US entity - regardless who are shareholders.

That US entity will be subject to corporate income taxes.

Ask Your Own Finance Question

Current corporate income tax rate is 15% for net income below $50,000.

As long as there is no income from Delaware sources - the corporation will NOT be subject to Delaware state income tax.

As long as the corporation doesn't sell any products or services to US customers - it will NOT be subject to sales taxes in the US.

Another issues will be with deducting business expenses and reporting requirements - we will cover these after we are clear with general income tax responsibility.

Let me know if you need any clarification.

Ask Your Own Finance Question
Customer reply replied 8 months ago
Thank you Lev,
We will sell golf coaching services, mainly in the United States but also the rest of the world. I assume we will then have to collect sales tax for our services?
How does this work?
When do you submit payments to the IRS for the sales tax collected?
Also, if I sell services online, how is it determined by the IRS where a person buying the service resides?
At what time does a C Corp have to pay corporate taxes? Is it once a year?

Regarding sales tax ...

There is no sales tax on the federal level...

Therefore the IRS will not worry and will not collect sales taxes.

Sales taxes are regulated by states - and each state has different rules and regulations.

However - in general - sales taxes apply to sales of physical goods and do not apply to sale of services.

So with your specific business model - if you do not sell goods - these sales will not be subject to sales tax.

But to be precised - you woudl need to verify state law in every state where your customers are located.

Ask Your Own Finance Question
Customer reply replied 8 months ago
Thank you, ***** ***** last question.
At what time does a C Corp have to pay corporate taxes? Is it once a year or how does it work?

Taxes are due by the due date of the tax return.
If you request an extension to file - that will NOT affect the due date for payment.

Generally, a corporation must file its income tax return by the 15th day of the 4th month after the end of its tax year.

If you are using a calendar tax year - the due date will be Apr 15 of the following year.
However if the tax liability is above $500 - the corporation will need to pay estimate taxes quarterly.

The corporation must make installment payments of estimated tax if it expects its total tax for the year (less applicable credits) to be $500 or more.
The installments are due by the 15th day of the 4th, 6th, 9th, and 12th months of the tax year.

Lev
Lev, Tax Preparer
Category: Finance
Satisfied Customers: 32,955
Experience: Personal Investment, Tax Preparation
Verified
Lev and 87 other Finance Specialists are ready to help you
Ask your own question now
Was this answer helpful?
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Preparer
Category: Finance
Satisfied Customers: 32,955
32,955 Satisfied Customers
Experience: Personal Investment, Tax Preparation

Lev 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

1,920 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
Real estate professional: Please explain the advantage of a
real estate professional: Please explain the advantage of a triple net property over a multifamily as far as income potential and price appreciation. attached is an example of a NNN property. It has r… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,361 satisfied customers
I am considering investing in the "Bank On Yourself Concept"
I am considering investing in the "Bank On Yourself Concept" ; a single premium paid up life policy that gives liquidity, approx 4% annual gains; and tax free grow. Can you give me any pros or cons on… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I am a member of the Canadian military and have been for 18
Hello, I am a member of the Canadian military and have been for 18 yrs. My wife and I were married for 14 yrs and are now getting a divorce. She is entitled to 1/2 my pension for the 14 yrs we were to… read more
Legal Ease
Legal Ease
Lawyer
Doctoral Degree
I wanna know how to know how much I have to charge and what
Hi, I wanna know how to know how much I have to charge and what is my profit if I sell tour service as a travel agency?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,235 satisfied customers
Information on 1031 deferred tax on capital gains. I have a
I have a property in a 1031 that i have sold. The money from this sale I want to purchase a primary residence. How do I do this and what tax will i have to pay on this transaction? … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,361 satisfied customers
We need a quick answer. so my partners are working with an
Hi guys, we need a quick answer. so my partners are working with an accountant currently. He's informed them that, because we will be winding down our current startup in which they invested for shares… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I had several tax questions, do i simply just ask and you
i had several tax questions, do i simply just ask and you give me the answer? or i assume there is a way to pay you? … read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
I just opened an llc..i want to pay myself...can i just wait
i just opened an llc..i want to pay myself...can i just wait till the end of the year and declar how much i paid myself or i must do a monthly draw??… read more
Carter McBride
Carter McBride
LLM
1,122 satisfied customers
Accounting Month End - Why does the Accounts Payable account
Accounting Month End - Why does the Accounts Payable account vary heavily based on the date of the check run at close? Why is 'timing' used as a reason for month over month AP variances?… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,041 satisfied customers
I live in Somerset WI 54025. Have allowed my adult son to
I live in Somerset WI 54025. Have allowed my adult son to use my American Express card to help him and family while under financial constraints. He is now successfully employed (2 years) with a compan… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,235 satisfied customers
Rental fees for my Precious Metal IRA are eating up my
Rental fees for my Precious Metal IRA are eating up my gains. Can I take it from that storage and put it in my personal bank lockbox.… read more
Alexander Efros
Alexander Efros
Masters of Business Administration (MBA)
39 satisfied customers
Last year I had income of $30,000. I have $250,000 term
Hi, last year I had income of $30,000. I have $250,000 long term capital gains in investments should I sell my stocks/bonds. I live in California. What taxes would I be expected to pay if I realize th… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
Would you be able to ask a few simple questions about
hi would you be able to ask a few simple questions about filling out a c corp tax return … read more
Alexander Efros
Alexander Efros
Masters of Business Administration (MBA)
39 satisfied customers
I have recently started working with a Homeowners
I have recently started working with a Homeowners Association that had a different bookkeeper handling their books. At some point in 2016 they discovered that no one had filed income taxes for years 2… read more
Lev
Lev
Tax Preparer
32,955 satisfied customers
Would you be able to give an estimate on how it would take
Hi, would you be able to give an estimate on how long it would take to do the following: my mom wants to put my name on a home title so that I can take equity out on the house to purchase another hous… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,361 satisfied customers
I own a small % of a mall and I donated it to charity. I got
I own a small % of a mall and I donated it to charity. I got the mall appraised by a real estate appraiser but now I need my shares appraised, accounting for my minority interest, liquidity, etc. Can … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
My accountant is out of town. we sold an invoice and we wer
my accountant is out of town. we sold an invoice and we wer going to sign over check when it came in the mail. It did but the customer paid several invoices on the same check. what's the best way to h… read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I have a 90000. APR mortgage. Should I pay it off with my
I have a 90000. APR mortgage. Should I pay it off with my only savings. I want out of debt. I am 70 with a full time job. … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,361 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