If you look at the United States business establishment sector, you will find that everything is very individual. Every single state is made for different type of businesses and you should be very careful, when you choose one.
Californian dream is not a dream, it’s a reality. A reality with major industries in entertainment areas, technology, agriculture etc.
California and business for you.
- California is a Member State of the United States, which is among the richest and economically most active members of the Federation. Money and opportunities are everywhere, if you are ready to work hard.
- If your business is somehow connected to film industry, there is no better place, than California. Among the most important cities in California is Los Angeles. One of its districts are Hollywood, which is significantly famous in filmmaking industry. Many selfies with Hollywood stars are included in the incorporation package ;)
- In terms of business there is a well known centre - Silicon Valley, which became the capital of start-ups and directs it to the many technological start-ups from around the world.
- California is a good state for technology start-ups
- But if the investor does not plan to do business directly to the California market, it is better to use other US destinations that offer favorable tax treatment. Discuss USA incorporation with Zenron Agent NOW!
Taxation. Before doing business in USA, please go through this information.
In the United States there are two basic types of companies with different ways of taxation.
- First is Corporation (C-Corp), which pays tax on corporate income at both federal and state levels. If the company wants to pay dividends and has yet to pay withholding tax on dividends, which is also a federal state. Taxes of that type of company are very high. This type of company can be optimized by asking the US tax authority to allow us to pay taxes only on a personal level (this creates an S-Corp). This, if a company earns a hundred thousands.
- Second basic type is a Limited Liability Company (LLC), where earnings are taxed directly to the shareholders in proportion to their ownership of the company. Florida "S" corporations are not taxable entities. This means they're not required to file state income tax returns after the first year resulting in saved tax dollars.
- Florida state income tax is an additional 5.5%. The advantage is that Florida imposes zero tax on income of individuals. Base rate "sales tax", which is added to physically sold products is 6%.
Tax system in the United States.
Tax system in the United States is quite complicated and extensive. There are federal taxes that are used to finance projects of federal and state taxes, which is determined by each state separately. Precisely because of state taxes, some states are better for business, because the sizes of these taxes can be a noticeable difference. The federal tax on corporate income ranges from 15% to 35% depending on their taxable income. The lowest rate applies to earnings $ 50,000. Generally, the tax system in the US is very comprehensive, and effective adjustment of structure and selection of the company is always useful to their situation individually consulted with professionals.