Incorporate C corp in US for a purpose of distribution / reseller


1

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.

Questions:
1. Where is the best state (in terms of tax) to incorporate if the company purpose to import and distribute product? Oregon or Delaware?

  1. Will I (as a director) be taxed based on my income in Hong Kong?
  2. The online store will be operated under Hong Kong company. When a US customer made an order, we will instruct the US branch to send it out.

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.

  1. How much is the import tax in US?
  2. Any recommendation for reputable online incorporation website?
    I hate hidden costs. I need a website that understand the needs of non-resident to incorporate in US. http://www.incnow.com/ http://www.bizfilings.com
    http://www.incorporate.com/ https://www.legalzoom.com

Thanks!

Incorporation Foreign Tax Resellers Distribution

asked Dec 16 '11 at 14:12
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Paul12
18 points
  • What is the reason for the links at the end of you question? – Ross 9 years ago
  • Where will your warehouse be located? This is important because you will need to pay taxes and file forms with that state as well. – Jonny Boats 9 years ago
  • @Ross: I miss the question. I want to know if anyone has used their service before? Which one is has a good reputation. – Paul12 8 years ago
  • @JonnyBoats, The warehouse will be located in US. Which state, I don't know yet. Looking for advice. – Paul12 8 years ago

1 Answer


1

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:

  1. There is no online incorporation service that can fully and properly meet the needs of foreign entrepreneurs coming to the U.S.
  2. My blog has a large amount of information that you probably will find helpful. Start at the Foreign Countries page, then follow links from post to post.

Disclaimer: This information does not constitute legal advice and does not establish an attorney-client relationship.

answered Dec 17 '11 at 07:49
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Dana Shultz
6,015 points
  • thanks. I will take a look at your link. – Paul12 9 years ago

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Incorporation Foreign Tax Resellers Distribution