Tell me more ×
Answers OnStartups is a question and answer site for entrepreneurs looking to start or run a new business. It's 100% free, no registration required.
up vote 1 down vote favorite

I want to incorporate startup selling only apps in Delaware as a c-corporation. All of the funders are US non-residents. As we will not be selling any material goods in US, will our corporation have to pay any income taxes in US (federal, state)?

share|improve this question

1 Answer

up vote 1 down vote

Your accountant will probably tell you that the corporation will have to file a federal tax return. As a c-corp, taxes may have to be paid on any income. Most likely, the corporation will also have state taxes.

The fact your are not selling material goods may bear on sales tax, but probably does not affect your income tax liability.

share|improve this answer
1  
And dividend distributions to foreign owners may also be subject to tax, depending on ownership stake and treaty provisions. – littleadv Jan 18 at 18:15
That is quite interesting - some Delaware c-corp founder (US non-resident) told me that his corporation does not have to pay any taxes due to the fact that all funders and shareholders were non-residents. Can any one provide some additional information on that subject and/or contact to some accountant from Delaware? I have tried to send few email enquirers about services to Delaware based accounting offices but did not get any response. – Adam Jan 23 at 17:23
I believe Delaware requires you to have a registered agent residing in Delaware. Maybe you could ask him or her. – Yorick Jan 23 at 17:59

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Not the answer you're looking for? Browse other questions tagged or ask your own question.