I'm forming a US C corporation in Delaware. Paid the service fees to a lawyer and everything's ready to be filed.
My goals are very simple as:
Several of my websites will be transferred to this corp and the income flow will be going like this:
Customer payments -> corp PayPal account (used to be my personal
business account) -> corp bank account in US -> wire to my China or
Hong Kong bank account
Would there be any problem for me in terms of taxation?
One problem I can see now is that as the expenses are mostly incurred here in China, how do I deduct them from my revenue that is received to my United States bank account?
Apparently I don't want to be taxed for profits I didn't earn. Any advice on how I can make this work without paying an arm and a leg?
You should really get a professional consultation with a US CPA savy in international corporation taxation. Tax-wise, you might have been better off with a DE LLC, not a corp.
Bottom line, you should first ask, and then do. I'm not a professional, and this is not a tax advice. It is my personal opinion that you've dig quite a hole for yourself. You should get a competent professional American CPA ASAP, and hold the papers and not file until you know exactly what you're getting yourself into.