Delaware company for an US dropship business ?

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OffshoreResearch

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Nov 27, 2019
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I'm thinking to diversify my source of income by setting up an US dropship business‌ where both suppliers and customers will be in USA.
I've now a Portuguese NHR residency‍ status.

If product stores and customers are both on the US territory, is it legit⁠ for me conducting such business through a Delaware company ?

I'll double check with a⁤ local tax consultant of course but I'm just looking for some feedback first.
What're the⁣ applied taxes apart the federal 8.7% deduction ?

I might just use my Madeira freezone⁢ company to do it easier where I'll pay 5% tax but I'll be probably required︀ to include in my prices the local 22% VAT (for private customers) I'm afraid for︁ a total taxation of 27%
I need to know if I'll save something in case︂ Portugal should accept to let me conduct the whole business through a Delaware company where︃ such activity will be justified by the fact to have both stores and customers on︄ the same territory.

What do you think ? Thanks in advance for your advice.
 
A Delaware llc is disregarded, so you'll pay the same taxes to the US as‌ if you traded without the company. Which would normally be none if you are not‍ in the US or have dependent agents there.

What is the 8.7% deduction you mention?⁠

If you trade with a madeira company you wouldn't charge vat to US customers.
 
I've been told any Delaware company will be always subject to a federal tax of‌ 8.7% calculated over the total revenue once per year but this no longer matter if‍ I'll not be forced to pay VAT when dealing with private customers.
I know US⁠ customers are obviously exempted by EU VAT while I thought Madeira will have forced us⁤ to cover at our charge the equivalent VAT fee when dealing with private customers ...⁣ It seems I was wrong about that which's surely a great news.
 
There is no 8.7% federal tax on the gross income. Not sure where⁣ that came from.

Also, there is no VAT in the US.
 
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