In a previous post, we talked about the types of companies that are available for registration in the US by non-residents. Today we are going to consider C-corporation in more detail and emphasize features of their taxation.
On the issue of taxes, let's make a small remark: offshore or completely tax-free states are a myth.
C-corp is a legal entity that protects the owner of assets (shareholder) from creditors' claims. C-corp is considered a separate taxpayer. If the profits are then distributed among the shareholders in the form of dividends, they must pay income tax. Thus, these companies are subject to "double taxation".
The main tax for C-corporation is the income tax of 21%. It is paid to the budget once a year based on the results of the reporting data in the tax return. However, after dividends are paid, partners must also make tax deductions. On accrued dividends, a non-resident must transfer tax to the country of which the owner of the corporation is a resident.
Ukraine and the United States have signed an agreement to avoid double taxation, which means that taxes are not levied twice on one amount of profit. That is, the amount of taxes that the entrepreneur paid on dividends in the United States will not be levied when paying taxes in his country.
Therefore, a non-US resident who owns a C-Corporation should understand that income tax will have to be paid twice: at the corporate level and when dividends are paid.
Yaremchuk & Partners Legal Consulting Group, in cooperation with an American partner law firm, will provide you with the legal advice on the potential registration of your business in the United States, prepare a package of necessary documents, and assist in the process of registration of a legal entity in the United States.

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