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This question might have been asked before however I guess I read too much everywhere and now I am confused. I really need the right advice which I could not find online or I still have not been able to find a good CPA. I am sure the question has been asked before however all I could read was for material goods but nothing for services provided.

Well I am in the process of registering my business in DE and I am from New Delhi, India. The company is obviously not registered in India already. I will be providing over the phone technical support to the US clients so there will be no material goods supplied. Just over the phone consultancy.

My only question is, Will I attract a US tax of any kind if I am receiving the funds in my US bank account and then I will transfer all the funds to my Indian bank account?

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My only question is, Will I attract a US tax of any kind if I am receiving the funds in my US bank account and then I will transfer all the funds to my Indian bank account?

Yes, it is called "income tax". Read more details here.

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The post above is correct.

If you're are an Indian citizen, you might get hit with US income tax if you have a membershp interest in an LLC.

If you own shares in a corporation, however, you might just get hit with a dividend tax.

The rates may be different.

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but the corporation is the one to pay the income tax then, which may be higher than the individual rates (likely so in fact). That to add to the dividend tax means double taxation. Also, it will require having him a work authorization (corporation officer must be a salaried employer) or pay someone else to run the business. – littleadv Feb 20 at 1:32

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