Originally Posted by miko
#1;So do I have to form a company in the US?
#2;What would be the best structure for my business from a tax point of view?
I hope you can help me figure this out.
#1We will also sell our product through Amazon FBA and online.
So do I have to form a company in the US?
Panama?======>>Not necessarily; it is up to you. 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;
#2;What would be the best structure for my business from a tax point of view?===>Hard to tell; it depends on your specific personal situation; Company incorporation in the US is administered at the state level ?not the federal level . of Incorporation or Certificate of Incorporation, depending on the state. Comparable in title and operation to businesses in other countries, the primary business formation structures are sole proprietorships, partnerships, corporations and LLCs.
Certain business structures limit whether non-U.S. citizens can be owners of a business incorporated in the US.. With LLCs, there are no limitations on the number of investors who can own interests in the business and no restriction on non-U.S. citizens assuming roles as members (owners). By contrast, if the corporation distributes profits to the shareholders in the form of dividends, shareholders pay income tax on those distributions; thus, C corps are often criticized for imposing ?double taxation.?
Under U.S. tax law, a non-U.S. citizen may own shares in a C corp, but may not retain shares in an S corp. S corps allow shareholders (owners) to report their portion of business income and expenses on their personal income tax returns and avoid corporate level taxation. The U.S. tax rules dictate that non-U.S. citizens cannot be shareholders of S corps. For these reasons, many non-U.S. citizens operating businesses in the US choose to incorporate their business as an LLC.