I'm in the EU (I don't have a US visa) and want to take on contracting or do a SaaS (completely bootstrapped, no funding) startup. I'm thinking of forming a US company in Delaware because I don't want to be taxed in my home country because of very high taxes.
I have read some things on the internet about forming an LLC/C corp in Delaware and have asked many professionals in my home country (no luck so far). However I haven't been able to get a clear answer for several questions:
I have read some things on the internet about forming an LLC/C corp in Delaware and have asked many professionals in my home country (no luck so far). However I haven't been able to get a clear answer for several questions:
- How can I deal with double taxation? By double taxation I mean being taxed in the US and in my home country. Is there a way to only pay taxes in the US while still living in the EU? I know about the official rule of "you get taxed where you live for ~180 days" but have heard that you can avoid this if you can prove that the decisions are made by someone else and not in your home country. Can anyone elaborate on this?
- What are the taxes that I have to pay in the case of LLC and C corp (Delaware)? Including state and federal.
- What are the costs of establishing/having (not just opening) an LLC/C corp for the first year and the year afterwards? Including opening, accounting/bookkeeping, lawyer fees, hidden costs etc.
- If things don't go as planned and I need to shut down the company, what would be the cost for this?
- Is there a service/company that can handle everything for me end-to-end? Including a bank account in the US. Preferably some entity that has done this a lot of times.
- I'm torn between going with Delaware (US) or Cyprus (EU), primarily because Cyprus somewhat solves the double taxation problem by having a nominee director and secretary in place to prove that the business decisions take place in Cyprus. What do you think?