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bigduckontax
bigduckontax, Accountant
Category: Tax
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I live in the UK and want to setup a Company in the US, what

Resolved Question:

I live in the UK and want to setup a Company in the US, what will my corprate and personal tax Liabilities be with such a structure, and are there any pitfalls I should be aware of?
Submitted: 20 days ago.
Category: Tax
Expert:  bigduckontax replied 20 days ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

My immediate reaction is why the USA? Would it not be better to set up in a tax haven like the Channel Islands, Gibraltar or the Turks and Caios Islands? However, if you do set one up in the States the only problem you might face is the US Withholding Tax, currently 30%, but under the Double Taxation Treaty between the UK and the USA, for the UK, 20%. This may be applied to any withdrawals. US Corporate tax rates vary, Federal between 15% and 35% and then there will be State Taxes to apply on top of that. The UK has Double taxation Treaties with several individual States within the Union in addition to the USA itself.

I must say your proposal seems a trifle complex. Why not just set up an UK company for this trading venture?

I do hope that you have found my reply of assistance.

Customer: replied 19 days ago.
If I was to go to a Tax Haven, can you say "generally" how that setup would look.Thank you for your response
Expert:  bigduckontax replied 19 days ago.

Generally the same as operating with an US company, but probably less regulatory hassle.

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Expert:  bigduckontax replied 19 days ago.

Thank you for your support.