My company in Hong Kong is selling handphone accessories. We also have an online store.
Because we have increasing customers in US, we are thinking to incorporate a company in US.
This is to minimized the shipping fee and time.
For some reasons we've decided to incorporate C Corp, instead of LLC.
The main purpose for the US company is to import and distribute the product. Or perhaps reseller.
1. Where is the best state (in terms of tax) to incorporate if the company purpose to import and distribute product? Oregon or Delaware?
How to calculate the tax for the US branch?
Does the tax calculate between Parent(HK) and Child (US) company? Let say the price for customer is $1000. The US company imported the product from Hong Kong for $950.
Can I say the US company only be taxed based on $50 profit?
Or the US company will be taxed from the profit earned through the website? $1000.
I am not qualified to answer your tax questions. However, I have helped more that 30 foreign clients form and build businesses in the U.S. Based on my experiences with those clients, I will offer the following:
Disclaimer: This information does not constitute legal advice and does not establish an attorney-client relationship.