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  1. #1
    Join Date
    Mar 2006
    Posts
    1

    Default Starting a Corporation

    Hey,

    I'm going under contract down to the states to do telecom work.
    During this period of time I wish to keep my money in the states, as I will be working and living the time being. Should I register as as a corp in like Wyoming/Nevada? If I do, and I make lets say $100,000 to $200,000 during the fiscal year, and am a registered corporation in either of those states what would my tax bracket be, and do I get a lower bracket because of being a new small business?

    I don't know exactly what I should do, I just don't want to be to badly double-taxed and lose money on an exchange rate. As well I want to reduce my taxes as much as possible, and if incorporating doesn't help, then there isn't any point!

    Alternatively I will be keeping track of my expenses accurately, and since I will be "travelling" most of my expenses should be 100%.
    I almost thought there 0% tax in the US (if you went through the noted states), but I forgot about and now know about the federal taxes, just don't understand the best way to go about this!

    Lastly, which corp is the way to go, S or C?

    --CP

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Work in the U.S.

    You're coming down from... Canada?

    What's the upside of incorporating? With an S Corporation, you have pass-through taxation. With a C Corporation, if you retain funds in the corporation they would be taxed and the corporate rate, whereas if you take a dividend it is taxable as income (not normally subject to FICA), but if you pay yourself a salary you would have to pay employment taxes. I'm not clear on how you plan to avoid taxes.

    Are you working in the U.S. as an employee or as an independent contractor?

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