1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

If an Indian resident incorporates a C-corporation in Delaware, what are the tax..

Discussion in 'Business & Tax Advice' started by jp_smith86, Aug 15, 2015.

  1. jp_smith86

    jp_smith86 Jr. VIP Jr. VIP

    Joined:
    Jul 6, 2012
    Messages:
    896
    Likes Received:
    355
    Location:
    DIL APNA PUNJABI
    Hey Guys,


    I am an Indian and I am looking at the possibility of incorporating a C-Corporation Or a LLC in Delaware. I already have a Private Limited Company in India. The primary reason is so that I can use proper payment gateway like Stripe. What are the tax implications?


    According to @Filing Corporate Income Tax I have to pay income tax in Delaware only if I am doing business in Delaware. What does doing business in Delaware mean? Having an office, employing locals or selling to residents of delaware? But As we are selling virutal services and we get clients from different parts of US and from some countries. SoDo I have to pay taxes in individual states wherever I have any sales since it will be a US company?


    If someone have already registered their business in US Delaware. Please clear some these points.




    Thanks
    Palwinder
     
  2. burnett4congress

    burnett4congress Regular Member

    Joined:
    Nov 17, 2011
    Messages:
    401
    Likes Received:
    163
    You'd have to open a C corporation or elect to treat the LLC as a C corporation (form 8832 election) unless you choose to get an ITIN from the IRS. If you get an ITIN you can open any form of business in the US.

    With that said, yes you would not have to file a Delaware tax return if you are not doing business in Delaware (taking payments, interacting with customers, etc).

    You will have to file a federal tax return though.
     
  3. jp_smith86

    jp_smith86 Jr. VIP Jr. VIP

    Joined:
    Jul 6, 2012
    Messages:
    896
    Likes Received:
    355
    Location:
    DIL APNA PUNJABI
    okay. Finally i have decided to go with C-Corporation. How does they calculate Federal tax for IMers?. Like if we receive near $15k-$20k in US bank account. Then we transfer 90% of the amount to our indian account. Do we have to pay tax for all 100% amount we had received or for the 10% we will keep in the bank account?
     
  4. burnett4congress

    burnett4congress Regular Member

    Joined:
    Nov 17, 2011
    Messages:
    401
    Likes Received:
    163
    On your income tax return you will declare your income and expenses. Whatever is left is taxable profits.
     
    • Thanks Thanks x 1
  5. Capo Dei Capi

    Capo Dei Capi BANNED BANNED

    Joined:
    Oct 23, 2014
    Messages:
    754
    Likes Received:
    1,732
    The 10% you would keep in the bank since the money you sent to India would be your salary, you would pay about $225 in federal taxes.
     
    • Thanks Thanks x 1