Delaware LLC pay 35% tax how can it be offshore?

[fxmaster]

I have just read that a Delaware company that is created by help of Stripe.com/Atlas has to pay 35% state tax from all earnings. Since I will receive all my money from Stripe and they have registered the company and they are in control of it I can't do much other than pay the tax that has to be paid.

Now I wonder how can a Delaware company be considered offshore when it has to pay 35% state tax?

Also, beside the tax I have to pay in the states I will also have to pay tax in my country when I take home the money so that means maybe 15 or 20% is left in total how can I run a business that way?

 

[dotbloup]

I think exactly the same︂ thing than you. And in order to see whether i was dreaming i have found︃ the documents from the IRS which mentioned that corporate tax should be paid on income︄ from the US
https://www.irs.gov/pub/irs-pdf/p519.pdf

I have wasted 1500 dollars because of that. You remind me︅ that i have to dissolve my US company. Thank you for that.

I think that︆ people considered Delaware company be an offshore company for all income that are not originated︇ from the US or delivered from the US.

I am sorry i even don't want︈ to elaborate on "setup" because the US market is so big so that when you︉ start to have customers in the US. That's it you are liable to tax as︊ long as you have a US company.

 

[fxmaster]

Thank you for your research it's exactly what my problem is. I have asked Stripe‌ by e-mail and waiting for some response just to be 100% sure if this is‍ true or not.

 

[poketax]

This is really interesting. I was in the process of starting a company in Delaware‌ with the stripe.com/atlas credit card processing, but I'm happy that I didn't got further with‍ it for now and until this has been clarified.

 

[dotbloup]

It is not going to be better if Hillary becomes president 🙂

 

[negon]

ha ha - no indeed not but it's still better than Trump

Here is how the taxation rates⁤ are for Delaware corps. Delaware State Business Income Tax | Nolo.com

 

[MiltonStone]

Thanks, that would make the Stripe.Com/Atlas solution not worth to go for unless you will‌ try to evade tax if that is a good move I don't know while it‍ is the US 🙂

 

[dotbloup]

I still read online that you can use a US company gathering money to a‌ US bank account 100% owned by a Belize company. I don't understand this setup.

 

[zohoman]

I questioning that too? Do you mean that they can avoid⁠ to get taxed in the US for income in the Belize corp?

 

[dotbloup]

In fact,‍ the IRS is pretty clear, wherever you are, if you have a US company, your⁠ US source income are taxable. For sure, a Delaware company owned by a non US⁤ resident can bill a non US citizen and it will lead to no corporate tax⁣ but USA is such a big market.

Plus, opening a bank account in the US⁢ is like opening a bank account in the belly of the beast.

Setting up something︀ with a US company in front to collect money whatever the technique (franchise, royalty) is︁ i think quite risky.

 

[zohoman]

I totally agree with this also if you are not a US Citizen⁠ I would not set anything up there, no company no bank account.

 

[dotbloup]

I would like to add something, if you want a Cyprus bank account and a‌ Delaware company, don't forget that Cyprus signed the FATCA agreement with is an agreement for‍ financial account data exchange between Cyprus and the IRS

https://www.treasury.gov/resource-c...ocuments/FATCA-Agreement-Cyprus-12-2-2014.pdf

I think that wherever you⁠ open a bank account for your delaware company you will be taxed on US income.⁤

 

[dotbloup]

In fact that would be offshore, for those who have customers outside of USA ONLY‌ and Products & services sold from outside of the USA ONLY.

Then, in this case,‍ the corporate tax would be 0%

BUT if:

• You have US customers and a product⁠ sold from Europe, you must pay 30% on your profit to the IRS
  
• You have⁤ US product or service sold from the US with US or EU customers you have⁣ to pay the progressive tax.
  

source is here:
Publication 519 (2015), U.S. Tax Guide for⁢ Aliens

Non US residents with a Delaware company and an offshore bank account may receive︀ in 2017 notifications to pay their tax to the IRS.

 

[Luigi]

I cant see your link due to it is broken. I thought that you had︂ to pay taxes only if you had customers in Delaware, not in the US. Can︃ you check it?

 

[Luigi]

Your link is broken.