Incorporating Company in Delaware - GoFuckYourself.com

ravenazrael · 08-01-2014, 06:44 AM

Hi guys,
Me and my partners will launch a site a bit similar to mydirtyhobby but there are a couple of twists. We have decided to incorporate the company in Delaware as there is a minimun tax to pay and no other obligations in the state or the US. I am in Canada and my partners in Asia. It was going to be more difficult to have a company in Asia and in Canada, taxes would be really high.

As you are more seasoned in this business, what is your take on having a company there versus canada. We have been suggested to incorporate it in the UK too, because there are less issues with charge backs.

Your two cents?? thanks

CrazyMartin · 08-02-2014, 02:33 PM

even if you have LLC company in delaware you have to pay taxes in your country
LLC company is corporation with the pass-through taxation of a partnership
its mean that LLC company don't pay any taxes, but shareholders have to pay taxes!

dealware companies are good only for other companies that are registered in true tax heaven

its not good for normal persons if they don't want to pay taxes because you will have big trouble

as i know, when you have any transactions with american companies or persons
you have to pay taxes in usa and register with IRS
accounting, and other shit...

Kingfish · 08-02-2014, 05:42 PM

Yeah, most people don't get that incorporating in Delaware, Nevada or wherever doesn't have any advantages. You still pay taxes where you live. To open a bank account in the corporate name in any state you have to register with that State's Secretary of State as a Foreign Corporation which will trigger the same taxes you would have to pay if you just would have registered it there in the first place. Finally you are declaring to the whole world that Delaware is where you want to be sued. So even small claims can be brought against you in Delaware and you have to respond. Incorporate where it is most convenient for you to do business. If your Canadian it is probably some border state.

ravenazrael · 08-03-2014, 09:18 PM

Thanks for the replies. I am getting different opinions.
I would like to know if when the Delaware company pays to us(the partners), we are taxed in delaware?

iSpyCams · 08-04-2014, 08:46 AM

You aren't taxed in Delaware. Just an annual franchise tax. You still have to pay income tax just not to the state of Delaware.

ravenazrael · 08-04-2014, 09:56 AM

IF we do not have a bank account in the US does that change the federal taxation in the US?

iSpyCams · 08-04-2014, 01:06 PM

Nope. If it's a DE company it's a US company. You will need a EIN from the IRS and you will be expected to file and pay what you owe, no matter where your bank is. And if it's not in the US you will have a hard time getting US billers to pay you there. (not really a hard time, they will just say no) plus you have extra forms to file if you have offshore accounts.

08-01-2014, 06:44 AM	#1
ravenazrael Confirmed User Industry Role: Join Date: Nov 2011 Location: montreal Posts: 583	Incorporating Company in Delaware Hi guys, Me and my partners will launch a site a bit similar to mydirtyhobby but there are a couple of twists. We have decided to incorporate the company in Delaware as there is a minimun tax to pay and no other obligations in the state or the US. I am in Canada and my partners in Asia. It was going to be more difficult to have a company in Asia and in Canada, taxes would be really high. As you are more seasoned in this business, what is your take on having a company there versus canada. We have been suggested to incorporate it in the UK too, because there are less issues with charge backs. Your two cents?? thanks

08-02-2014, 02:33 PM	#2
CrazyMartin Confirmed User Join Date: Jan 2009 Posts: 336	even if you have LLC company in delaware you have to pay taxes in your country LLC company is corporation with the pass-through taxation of a partnership its mean that LLC company don't pay any taxes, but shareholders have to pay taxes! dealware companies are good only for other companies that are registered in true tax heaven its not good for normal persons if they don't want to pay taxes because you will have big trouble as i know, when you have any transactions with american companies or persons you have to pay taxes in usa and register with IRS accounting, and other shit... Last edited by CrazyMartin; 08-02-2014 at 02:45 PM..

08-02-2014, 05:42 PM	#3
Kingfish Confirmed User Join Date: Sep 2002 Posts: 668	Yeah, most people don't get that incorporating in Delaware, Nevada or wherever doesn't have any advantages. You still pay taxes where you live. To open a bank account in the corporate name in any state you have to register with that State's Secretary of State as a Foreign Corporation which will trigger the same taxes you would have to pay if you just would have registered it there in the first place. Finally you are declaring to the whole world that Delaware is where you want to be sued. So even small claims can be brought against you in Delaware and you have to respond. Incorporate where it is most convenient for you to do business. If your Canadian it is probably some border state. Last edited by Kingfish; 08-02-2014 at 05:48 PM..

08-03-2014, 09:18 PM	#4
ravenazrael Confirmed User Industry Role: Join Date: Nov 2011 Location: montreal Posts: 583	Thanks for the replies. I am getting different opinions. I would like to know if when the Delaware company pays to us(the partners), we are taxed in delaware? __________________ www.boobsrealm.com www.bestboobscams.com

08-04-2014, 08:46 AM	#5
iSpyCams Amateur Gynecologist Industry Role: Join Date: May 2009 Location: Medellin Posts: 4,436	You aren't taxed in Delaware. Just an annual franchise tax. You still have to pay income tax just not to the state of Delaware. __________________ - As soon as I think up a good sig it's going here.

08-04-2014, 09:56 AM	#6
ravenazrael Confirmed User Industry Role: Join Date: Nov 2011 Location: montreal Posts: 583	IF we do not have a bank account in the US does that change the federal taxation in the US?

08-04-2014, 01:06 PM	#7
iSpyCams Amateur Gynecologist Industry Role: Join Date: May 2009 Location: Medellin Posts: 4,436	Nope. If it's a DE company it's a US company. You will need a EIN from the IRS and you will be expected to file and pay what you owe, no matter where your bank is. And if it's not in the US you will have a hard time getting US billers to pay you there. (not really a hard time, they will just say no) plus you have extra forms to file if you have offshore accounts. __________________ - As soon as I think up a good sig it's going here.