Thank you for contacting me about your Tax issue. I will work hard to help you understand the issue clearly.
Your questions are not clear as to which country you are asking about the tax rules
, but I will answer them as though the questions relate to US taxes. It sounds as though there are many misconceptions and tax concepts that are unclear.
If your business has nexus (a legal term referring to the state
and/or nation the business is most closely associated with) in the US and/or the company has US source income
, the entity and/or its owner will be subject to us federal tax
. Similar rules apply to state tax depending on where the business is located in and has nexus. Sometimes this may be more than one US state.
1. Unlike Europe, the US has no gross receipts tax or VAT
of anything. Each state is free to impose and collect sales tax, which most often is paid by the retail purchaser of goods and services. Sales taxes
are based on the location of the purchaser in the US. Foreign
purchases of goods and services are generally exempt
from sales taxes.
2. Depending on the legal organization of the entity, different rules apply. For example, a US corporation taxed as a C-Corporation (not eligible for S-Corp status) pays tax at the corporate level. DIVIDENDS
are paid to the shareholders after taxes are paid by the corporation. The shareholder only pays personal income
tax on dividends paid out. If the entity is an LLC taxed as a sole proprietorship, the tax is paid only at the individual level. There are no flat taxes
. Delaware's flat franchise tax
only applies to corporations, not LLCs.
3. Having a third-party as your agent does not have any tax effects other than you are paying a contractor versus having employees and dealing with payroll taxes
, etc. It does not cause nor relieve you of any income tax liabilities
. If you have an outside firm handling your contractors or workers, they are responsible for all employment taxes on their employees.
4. As a general rule of thumb, you should keep all business records a minimum of 7 years. The IRS
can go back 3 years for an examination and states can sometimes go back even further.