Find out how taxes work in the United States

In the United States, we have a large amount of taxes, however, foreign citizens who create a company in this country are obliged to pay very few, among them we mention:

Sales tax

Businesses that register with the Florida Department of Revenue, for example, to collect sales tax receive a Florida Annual Resale Certificate for sales tax (Annual Resale Certificate). The certificate allows business owners, or their representatives, to buy or rent property or services tax-free when the property or service is resold or rented.

• These sales are declared monthly, quarterly, or semi-annually, as determined by the state. This is paid directly to the state in which the company operates. To register with a state, it takes 2-3 weeks to get state approval.
• When the process is complete and registered, you will also receive a resale tax certificate so you can buy in bulk without paying sales tax.
• Sales tax is reported and paid only for sales made within the state.

How much do I have to declare in sales tax?

• Florida sales tax 6 %.
• Texas sales tax 6.25 %.
• California sales tax 7.25 %.
• Delaware sales tax 0%.

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Income tax return

The amount you will pay the IRS for this tax varies depending on the profit of your company.

Since 2018, CORP rates are 21%. When distributing profits to shareholders, the amounts received will also be 21%. In other words, they have double taxation. LLCs do not have to pay this tax at the corporate level. The tax will be charged at the individual level, once the profit has been shared (which in that category is divided 100% among the partners).

These percentages (%) vary between 10% and 37%. On average, LLC members could pay approximately 18%.

In general, a CORP will pay 21% of corporate income tax. The shareholders of the CORP, after receiving the dividends, will pay 21% as well.This percentage varies for LLC members who pay taxes on earnings received.

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“Remember that for this process to be carried out correctly, it is important that you have a trained professional. At Matrix International we can help you with your company's Taxes”