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?[…]

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?[…]

Can a US citizen and employee sue his Australian employer for non-payment of IRS employment taxes?

My answer to Can a US citizen and employee sue his Australian employer for non-payment of IRS employment taxes? Answer by Wray Rives: First make sure that in fact your Australian employer is subject to US tax reporting and US employment tax. Employment Status Number one are you in fact an Independent Contractor (Self-Employed) or Read more about Can a US citizen and employee sue his Australian employer for non-payment of IRS employment taxes?[…]

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What is the best state to incorporate in for a foreign startup?

What is the best state to incorporate in for a foreign startup? Answer by Wray Rives: There are so many variables, all I can do is give you some general ideas about foreign nonresident owners of US entities and what states make “tax sense” for the non-resident owners. First I assume you that you want Read more about What is the best state to incorporate in for a foreign startup?[…]

When employing an independent contractor in CA establishes sales or income tax nexus for a Seattle company?

My answer to When can employing an independent contractor in CA establish sales or income tax nexus for a Seattle c… Answer by Wray Rives: Just using an independent contractor in California would not create nexus in CA; however, there are several common, potential issues that typically come up in this scenario. If the independent Read more about When employing an independent contractor in CA establishes sales or income tax nexus for a Seattle company?[…]

Is it worth creating an LLC in Delaware while operating an e-commerce business out of New Jersey? What are the pro’s/cons?

Is it worth creating an LLC in Delaware while operating an e-commerce business out of New Jersey?  Answer by Wray Rives: Should you register you startup LLC e-commerce business in Delaware? If you operate the business in New Jersey, you will still have to register the LLC as doing business in New Jersey and pay Read more about Is it worth creating an LLC in Delaware while operating an e-commerce business out of New Jersey? What are the pro’s/cons?[…]

When flipping houses, does it make sense to set up a corporation?

 When flipping houses, does it make sense to set up a corporation? Answer by Wray Rives: From a US tax perspective absolutely not. When you flip houses, you are generally creating taxable capital gains. Individuals can often pay a lower rate of tax on capital gains, but for a corporation capital gains are just another Read more about When flipping houses, does it make sense to set up a corporation?[…]

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