What is the difference between C Corp and S Corp

  S Corporations and C Corporations have a number of differences. From a tax perspective the key differences are: S Corporations Limited to one class of stock Limited to 100 shareholders All shareholders must be US individuals or certain trusts and estates Generally no income tax at the corporation level Taxable income flows through to Read more about What is the difference between C Corp and S Corp[…]

Foreign Partners US LLC

EIN or ITIN

Non-US individuals often want to know the fastest and easiest way to obtain an EIN or ITIN.  I find a lot of misunderstanding about the two numbers. First you need to understand that EIN and ITIN are similar numbers that serve different purposes and have different requirements. EIN-Employer Identification Number. An employer identification number (EIN) Read more about EIN or ITIN[…]

ICO Accounting

Question: How are ICOs treated on the balance sheet of the issuer (i.e. are tokens treated as unearned revenue?)? What are potential ramifications on valuation? ICO’s-Initial Coin Offerings are a new financing tool used by companies. These offerings are un-regulated crypto-currencies and therefore popular with startups that want to raise funds without the high cost Read more about ICO Accounting[…]

How are US taxes calculated dividends and gains for a non-resident investor

There are a few specifics you need to consider as you read the following answer for non-resident investors paying US tax. Dividends will generally be considered FDAP Income (Fixed, Determinable, Annual Periodic), taxed at a fixed rate for a non-resident. Effectively Connected Income (ECI) will be taxed differently than straight income from investments. Assuming you are just an Read more about How are US taxes calculated dividends and gains for a non-resident investor[…]

Tax

Married couple work as independent contractors form an LLC?

Question: Married couple live in California, both work as independent contractors, should they form a Delaware LLC and elect to be taxed as a corporation since the corporate tax rate is only 15% on the first $50,000 of profit. Answer by Wray Rives CPA CGMA: First off there is no scenario where just forming an Read more about Married couple work as independent contractors form an LLC?[…]

How important is it to file 83(b) election S-Corp?

My answer to How important is it to file a Section 83(b) election for an S-Corp? Answer by Wray Rives CPA CGMA: As to the question about making an 83(b) election, it is very critical that you understand the consequences of making the election for restricted stock in an S Corp, but if you should Read more about How important is it to file 83(b) election S-Corp?[…]

As a single non-resident U.S alien owner of a LLC in Wyoming selling inventory through Amazon FBA what are my US tax obligations

My answer to As a single non-resident U.S alien owner of a LLC in Wyoming selling only inventory through Amazon FBA… Answer by Wray Rives CPA CGMA: What makes FBA different? Generally speaking Amazon FBA creates an agency relationship between you and Amazon, which makes Amazon your agent in the US. Under most tax laws Read more about As a single non-resident U.S alien owner of a LLC in Wyoming selling inventory through Amazon FBA what are my US tax obligations[…]

Posted in Tax

Should I file my startup in Delaware if it’s located in Texas?

My answer to Should I file my startup in Delaware if it’s located in Texas? Answer by Wray Rives CPA CGMA: If you will operate your Texas startup from Texas, you will have to be registered in Texas no matter what. The only reason to register in DE is because you intend to seek outside Read more about Should I file my startup in Delaware if it’s located in Texas?[…]