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:
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Federal Income Tax
Federal Income Tax
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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%.
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State Corporate Tax: C Corps may also be subject to state corporate income taxes, which vary by state.
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Withholding Tax
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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.
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Employment Taxes
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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.