Originally Posted by DELGADOTAX
My business in Incorporated in Nevada. I'm the owner and I live in Malaysia. I sell on Amazon. Can I pay myself and deduct as "compensation of officers"? Please let me know... Thank you!
My business in Incorporated in Nevada. I'm the owner and I live in Malaysia. I sell on Amazon. Can I pay myself and deduct as "compensation of officers"? ========>>>>>>>Of course; as you formed a C corp in NV, your corp will be taxed as like any other US corp. The corp will pay the same taxes that any other US corp would on all US-sourced income and your NV corp would also be taxed on all foreign earnings, in accordance with US Treasury regulations. Since the corp was formed in the US, it is taxed as a domestic corp and you will file Form 1120.On your form1120, you can claim yur compensatin of officers as a part of your biz operating expenses. In your C-Corp you will have to pay the IRS, and then when you transfer the money in your native accounts, pay taxes on these dividends again;howver,
generally speaking LLC is a better option for NON-US Residents rather than a C-Corp; I know many non US residents just simply follow what their tax pros recommend them incorporate in US however, if you only plan to sell goods, perhaps through the Internet or wholesaling to U.S. companies, it may not be necessary to form a U.S. company. You may also give some forethought to the fact that some U.S. consumers are more likely to purchase things over the Web from a U.S. company rather than overseas, so it may be desirable for marketing purposes to incorporate in the US as well.in C-Corp the revenue of the company is taxed and later when the profits are paid out as dividends, the Individual is taxed again. Hence the word DOUBLE-TAXATION.
In LLC the company is not taxed at all, and are passed through to the individual running the show to file the company's taxes in his personal returns.State taxes depend on where the company is formed. So, companies owned by foreign nationals who want to do business in theUS must weigh the options of whether or not to form a corporation or LLC/