The taxes that apply to a foreign resident operating a business in the US can vary greatly depending on the specific circumstances of the business and the individual's tax residency status. Some common taxes that may apply include:
Federal Income Tax
Corporate Tax: C Corps are subject to U.S. federal corporate income tax on their worldwide income. The current federal corporate tax rate is 21%.
State Corporate Tax: C Corps may also be subject to state corporate income taxes, which vary by state.
Withholding Tax
Dividends: Dividends paid by a U.S. C Corp to its foreign shareholders may be subject to a 30% withholding tax, unless reduced by a tax treaty.
Employment Taxes
It's important to consult with a qualified tax professional to determine the specific taxes that apply to your situation. doola offers CPA consultations to help foreign residents understand and navigate the complex US tax system.
Disclaimer: This information is for general purposes only and should not be considered tax advice.