Incorporating in USA

Hey Guys

Any help with foreign incorporation?

We are looking at US as best possible location for our startup. Need someone who can evaluate the options and help us with the whole procedure.

We have checked up with various sources, and Singapore is way too expensive for us at the moment. So we have zeroed in WA, USA. We have a person over there who can also be our manager/officer and thus get our bank account registered.

But can anyone help us with incorporation? We don't know any trustable source who can get this done for us. And we talked to a CPA who was charging us over $1.6k for incorporation alone... so that's unaffordable.

Keep in mind that we need regular secretarial services after incorporation as well. Such as Initial Report filing, Filing Annual accounts and taxes, etc.

Thanks
Rishabh

 

incorporate.com
mycorporation.com
bizfilings.com
legalzoom.com

etc

etc

As far as annual services, you will need a licensed CPA i believe

 

I used legalzoom to incorporate a business in a different state and it cost $250-$300 for them to do everything to get you launched. They wanted $146 per year after that to continue being your agent (you have someone there who can be that, so would not be necessary), but I do not think that this fee included any of the proper annual filings after the initial incorporation.

 

I was talking about the tax filings in addition to the state annual filings as well

 

Actually, while it varies state by state, you only need to pay an annual fee and file the minutes of an annual shareholder's meeting. At least that is how it has been in the two states that I have incorporated businesses in. I have my corporate accountant/attorney do that for me as part of his services, but I could do that myself, if I wanted to. CPA audits are not required for a privately held corporation; if the government has any questions, they will either sic their state revenue department or the IRS on you and they will perform their own audits, as they please.

 

After much research, we are much more inclined towards incorporating a C-Corp in WA(Washington state).

But are concerned about the B&O(Business & Occupation) Tax and Sales Tax. We plan to make a marketplace like fiverr for digital and creative services. The transactions will go through our payment accounts(like on Amazon, Fiverr) and we further pay that to the sellers after say, 1 week.

My question is, does the B&O and Sales tax apply on all transactions or only on the revenue we get from customers paying from WA? I read on DOR's site that Interstate and Foreign Revenue is exempted from B&O.

 

As far as Sales Tax goes, I believe it only applies to residents of that state... not sure about B&O though

 

Correct, a quick google search confirms this. You answered your own question.

 

A C Corp. is the best choice if you plan to have a large number of shareholders. Otherwise, there are significant tax benefits to forming an S Corp. Delaware is often the state of choice to incorporate in (again, for tax purposes) but if you are looking for a West Coast state for geographical/time zone reasons, WA is okay and I would definitely stay away from Calfornia.

 

I still filed the query to the Washington DOR for a binding ruling. Just want to be 100% sure that for the nature of business that we are involved in, there is no variation.

Yes. C-Corp is what we will be filing.

 

An S Corp can only have shareholders who are either US citizens or US residents. It cannot be used by a non-US citizen residing outside the United States.

 

Thank you. I did not know that and that certainly changes the picture for the OP, though he intended to file for C Corp. status, anyway.