FAQ – Tachotax-US

FAQ

Business Registration

An EIN is an employer identification number required for providing identification of a business to the IRS or the Internal Revenue Services. A business organisation requires an EIN when it is already applicable to pay taxation for the same. the EIN is required for paying federal taxes, issue payrolls, etc.

Business Service

According to the recent report of U.S. Small Business Administration, home-based franchises cost $2,000 to $5,000, whereas most micro businesses cost around $3,000 to start. And for Tax resident LLC it costs around $9,000 and for both the S-Crop and C-crop it cost $8860.

In general, it is not mandatory to have a green card and to be a US citizen to own LLC or corporation in the USA. There is no restriction on foreign ownership. The procedure for a non-USA resident is the same as a USA resident.

Follow the steps to start a business;
– Decide Business type
– Decide a prime location
– Get a Registered Agent
– Register your LLC or S-Corporation
– Go for an EIN
– Go for a US mailing address
– Open US business bank account

C-Corporation

A C corporation is subjected to the process of double taxation. The organisation is required to pay income taxes on the profit gained. However, individual shareholders are also required to report dividends on their tax returns. Also, a low rate tax is employed to the first 75,000 dollars profit gained by the company.

Yes, all C corporations require a registered agent. However, this depends on whether the business is done in states other than business the set-up state. A registered agent is required in every state where the business is been carried out until its withdrawal. The registered agent is appointed don the basis of the Articles of Incorporation.

A C corporation is formed by adopting a legal business name for the venture followed by appointing the directors for the corporation. The corporation is then registered by filing articles supporting the incorporation. This step also requires a filing fee. Later, the stocks are issued to the initial set of shareholders and required permits and licenses are obtained.

Primary advantages of a C corporation include a low maximum tax rates, unlimited number of associate shareholders, no restrictions on ownership of the venture, no restriction on the classes of stocks, etc. among others. Moreover, a C corporation has more options for raising the capital due to the lack of restriction on the ownership of the company.

The greatest restriction of a C corporation is that comes with a double taxation procedure which in turn makes the entire process expensive. It is expensive also because the filing of the Articles of Incorporation requires heavy fees. This fee is paid to the States of operation of the business.

Copyright Registration

Yes, you can register multiple works as a collection under one registration. For obtaining multiple works copyright registration is generally similar to standard copyright registration procedures. When copyrighting an entire collection you need to select a single name or title to encompass the entire collection.

No, your copyright is not protected in all countries around the world. And there is no “international copyright” that can automatically protect your copyrighted work throughout the world. And any unauthorized use of copyright can be prevented by a particular country depending on the national laws of that country.

Whenever you filed a copyright request, you will spontaneously receive an email that confirms that your application has been received. And after that, it will take an average of 2-3 months for registration and receive a certificate in the normal course.

Copyright does not protect names and titles. As the protection policy does not cover names, titles, covers, short phrases, and slogans. It’s designed to protect creative authorship. To identify your work, you cannot copyright your name or title of any short phrase or post.

Corporate Tax

There are various requirements for income tax filing for exempt corporation. The premium paid should not exceed 20 percent of the initial mentioned sum of the policy in any year on or after 1st April, 2003. However, the same should not exceed 10 percent of the assured policy sum on or after 1st April, 2012.

E-file of a business entity return could be obtained by preparing a client’s tax return payment initially. This is followed by signing the applicable forms for the process. Further, the returns are transmitted to the IRS and the FTB. The details could be retrieved in the acknowledgement files.

The due date for filing an income tax return is one year from the end of the current assessment year. For example, the last date for filing an income tax return for the assessment year of 2017-18 would be in 2019. However, these dates could be extended due to several reasons under certain circumstances.

CPA Assistance Service

A current or previous year transcript for tax return could be achieved through online means at the IRS (Internal Revenue Service) government site. A ‘Get transcript’ option is made available in the Toolbar on the site. The transcript could be requested through a phone call or a mail as well.

CPA stands for certified public accountant. It is a classification offered to individuals who possess the ability to hold professional grades in the U.S. accounting business and industry. The CPAs work as consultants or advisors for varies firms or bodies. They set a financial health goal for organisations keeping in mind the health of the business.

Accounting is a process of organising the financial informative records of a business. Moreover, it is a finance tracking system employed to various aspects like expenditures, profit and loss status, financial graphs, etc. accounting helps in keeping a track on the financial health of the business, ensures statutory compliances, etc. among others.

Foreign Corporations

A person who is not a citizen of the US will have to get a federal employer identification number, tax identification number, and other licenses. They will have to apply for a residence visa as well. There are no restrictions on a person who is a non-citizen of the US to start a business.

Yes. All the foreign companies that are engaged in the US are taxed. The companies are required to file a US income tax return and the foreign companies are imposed a minimum income tax with credit for 80 percent of foreign income taxes that they have paid.

A foreign country has a chance to do well in the US as it is one of the world’s most dominant economies. Therefore it sets a paradigm for many countries. Foreign companies have a chance at success in extending their companies.

General Partnership

The location or place for business is different depending on each business’s needs and factors. There are some considerations to be considered, however. The Style of operation of a business, whether it be formal or casual, the demographics of the place, foot traffic, and if it is important for the business, parking accessibility and, the site’s image and history.

In a partnership agreement, the different business objectives are included. There are also the main important issues that should be addressed in the agreement such as the percentage of ownership, division of profit and loss, the length of partnership, partner authority and, withdrawal of a partner.

Partnership agreements are critical to organizations that are comparatively bigger in ownership. The partnership agreement will specify the operations and on certain deals that would ensure protection for the partners in the future.

Individual Tax

Yes, a U.S. citizen living and working outside the country is applicable to file for a tax return generally. This is because a person’s income is a subject to the government irrespective of the place he resides. However, a set of guidelines are followed for the same. A person can refer to certain foreign income tax credits or foreign earned income exclusion policies before filing for a tax return.

U.S income tax return policies apply to individuals holding a green card status or U.S. citizenship. As a result, a person is supposed to file for tax return irrespective of his present residence or whether he pays tax in the foreign country or not. A tax guide for alien residents and non-residents is followed for the same.

The due date for U.S. income tax return is generally April 15 each year. However, the due date is applicable to shift on any following working day if April 15 falls on a weekend or public holidays. The U.S. tax year ends on December 31 for every session. Moreover, for people living or working outside the country, the due date of filing for a tax return is extended for 2 months. This is done keeping in mind certain criteria and regulations.

ITIN Creation

Yes, an individual needs to obtain an ITIN irrespective of the fact that he is applicable to receive U.S. source royalty income as a non-resident. A person can apply for an ITIN under conditions when he has claimed a decreased rate of the federal income tax from a royal source under a tax treaty or receiving a passive income through royalty distributors.

An Individual Taxpayer Identification Number could be applied when an individual is ready to file for a federal income tax return. An individual can apply for an ITIN through online or offline means by filling the W-27 form and attaching necessary documents for the same. These documents will confirm the required foreign and general identity of an individual before the approval of the application.

The Individual Taxpayer Identification number is applicable for the non- resident individual aliens earning in the U.S. mainly. However, categories like non- resident students or university expert, people claiming a tax treaty benefit, dependence on a US citizenship holder, dependence on non-resident alien visa holder, etc. are also applicable to file for the ITIN.

Joint Venture

A joint venture is an arrangement when two or more businesses come to work together by using their resources for completing a common task or a project.

The main difference between a Joint Venture and a partnership is that a partnership comprises an agreement between two parties where they share the profits as well as the loss of the business and join for a combined venture. In a joint venture, however, two or more companies come together in business to work for a common task.

The purpose of a joint venture agreement holds that two or more entities cooperate to do business together. The purpose has to be with accomplishing a specific task or objective, therefore, making it doable.

LLC (Limited Liability Company

The formation and approval period of an LLC varies from one state to another. Most states approve an application in 7-10 working days whereas others can take up to a month or more. However, certain U.S. states take up to 3 business days only for approval of the application.

The formal paperwork required for forming an LLC include documentation od Articles or organisation as well as the operating agents. Documents related to the Registered agent, business management structure, operating assessment, ownership status, etc. are also required for the formation of an LLC. Other than these basic details like the business name and purpose should also be submitted.

Different criteria are involved in forming an LLC in a State. Information about operating agreements, registered agents, business licenses and permits, tax forms, etc. among others are required for forming an LLC. However, this requirement varies from one state to another. A business name and address are also required for the same.

The LLCs and LLPs differ in certain aspects. Both are managed through different means. An LLP is managed through a partnership whereas LLC could be managed directly by an individual or with the help of any management organisation. An LLP is run by professional individuals pertaining in various fields whereas an LLP could be run by any individual.

LLP (Limited Liability Partnership)

Advantages of an LLP are that it has the flexibility and the limited aspect of the company at the best hand. One of the advantages is that the partners are not liable to the company personally and cannot be forced to pay a business debt. They also enjoy protection in which they cannot lose more than what they have contributed.

The numbers of owners that are required to form an LLP are two. The company must have at least two owners to form a liable partnership agreement.

LP (Limited Partnership)

A Limited partnership will have to be registered by filling a fee, creating a limited partnership agreement that defines how much each owner in the company has.
The registered agent does not necessarily have to be a lawyer.

An LP can have to have one general partner and one limited partner. Therefore making it feasible to control the company’s operations and being personally liable to the business as well.
when there is a company that specializes in a broad role of operation. The use of the LLP has therefore benefits for a larger company than a comparatively larger one which ensures the partnerships of the members.

An LLC is personal asset protection for a business and all of its members. Therefore Individual members do not bear the burden of the business debts. An LP however is a protection license only to work for personal protection and certain business partners.

Mail Forward Service

Each of the destination country charge for the customs duty and administrative fees on shipments those contain any kind of dutiable items. Whereas, dutiable items means that the specific item is subject to taxes. And while using USPS, it doesn’t have an idea whether an item is dutiable.

Yes, you can. And to do that effectively you can follow these steps;
Segment your users
– Set up an automated campaign
– Send from YOUR email address
– Run a simple A/B test
– Simplify your copy
– Give away your knowledge, for free

United States Postal Service (USPS) will help to forward mail internationally. Once you are done with the formalities of the online form, it will take a maximum of 10-15 days for mails to be forwarded to the new address. It will cost $21.10 retail or $19.35 online.

Non-Profit Organization

Yes, an attorney may be needed during the filing process of the Non-profit filing process.
You may need an attorney for the incorporation and also for applying to the IRS for tax-exempt status, as a charitable organization.

The Incorporation process for a Non-profit includes processes like choosing a Business name, incorporate online or phone platforms, Applying for IRS tax exemption, Applying for a state tax exemption, Draft the bylaws and Appoint directors and members.

The classifications for a Non-profit include Public charities, foundations, social advocacy groups, and such. IRS 557 provides details on the different categories of Non-profit organizations.

Non-profit organizations enjoy some special treatment under the law and can be a reason for most organizations to file as one. The primary objectives of the organizations are also their charitable nature and that they impart values to the society as well with their activities that deal with the common good.

Patent Registration

The process of payment for the application of a patent may be through online modes of payment in the site you have filled the patent application.

To check on your patent, you need to access the patent search system and you can search by entering the application number of your patent. Then you can click the application number hyperlink.

For applying for a patent, your business needs several steps to be followed. You have to check if the business is patentable, draft the application, filing the patent application, publishing the patent, examine the patent and then you can decide whether to grant a patent.

Professional Limited Liability Company (PLLC)

A PC pays the maximum 21% to cooperate tax on all the income and the members are individually responsible for paying their income tax. A PLLC does not pay income tax on a federal level however pays regular cooperate taxes.

The appropriate name ending for a PC or PLLC is depending on the state of cooperation. The name PC mostly deals with Professional medical, law, accounting services. The name PLLC has to have a business that has the license required to perform the services.

A Professional Limited Liability Company is a company that is formed for the purpose to provide professional services and assistance.

Property Deed

No, it is not legal to deed the property to someone without their consent. If the owner is major, then you have to take proper consent of him and if minor you have to take permission from the court. And if the deed is disposed of without consent it can be reclaimed.

To convey title, the entire real estate transactions use one of four types of deeds. The types are subdivided depending upon the facts of warranties conveyed by the grantor and covenants.
– General Warranty Deed
– Bargain and Sale Deed
– Special Warranty Deed
– Quitclaim Deed

A real property deed is nothing but a legal document that clearly states all the legal statements regarding the transfer of property ownership rights in real estate. It contains:
– A complete description of the involved property
– The names of the parties
– The signature of the authorised person transferring the real estate

Residential Deed

Basically, both the title and deed of a house is exactly the same document. Title Deed is just the most used name. When transferring a house, property, or real estate, the legal documentation submitted is known as the Deed of Transfer.

When you considering the thought to buy a property, you can choose any of the five main types of deeds;
– Warranty Deed,
– Quitclaim Deed,
– Special Warranty Deed,
– Grant Deed,
– Bargain and Sale Deed.
Among all, Warranty Deed is the best type of deed.

If your house is registered then you can obtain a copy of your legal title i.e. ‘deeds’ online. And the cost of it is £3 for the register and £3 for the plan associated. There will be an additional fee if you require more documents.

S-Corporation

Certain states in the United States have publication requirements related to the S corporation. These states include Arizona, Nebraska, Georgia and Pennsylvania. A public requirement generally describes the process of announcement of the ownership as well the creation of a corporation in a public newspaper.

There is a certain restriction while applying to form an S corporation. A person must be a domicile of the United States. The venture should be run by shareholders and should possess a single class of stock. Moreover, an S corporation cannot have more than 100 shareholders. As a result, the ownership is limited.

The tax implication for an s corporation depends on certain means. In this case, the income is taxed to the shareholders of the company. The tax amount is reported by the organisation but is not paid by it. Also, a shareholder is not required to pay any tax about its employment status in the company profit status.

Sole Proprietorship

You can transfer the business bank account by linking two accounts. The method can be done with the bank’s online banking platform.

The transfer of a sole proprietorship is to purchase the assets and changing the name of the business. The transfer of the goodwill, abiding of all contracts, and notifying all required parties are part of the Transfer.

Valuing a sole proprietorship business is to understand the valuation of the business as just an estimate. So the success of the business lies heavily upon the owner’s experience and personality. A more practical way is to find the value of the business asset and its total earnings.

Trademark Registration

It is important to register a trademark as it provides the brand and ensures that no other business takes the trademark for them. It ensures the tools to legally expand your business as well.

It will take at least 2-3 working days for a trademark to collect drafts and file an application for a trademark. However the whole process usually takes around 2-3 months with the registering process.

The trademark protection term is of 10 years with a 10-year renewal term. Trademarks are protected globally with the types of brand names, logos used on goods and services.

US Bank Account Service

Checking Account
– Easy
– Gold
– Platinum
– Student
– Safe Debit

Savings Account
– Standard
– Platinum Select Money Market Savings
– Package Money Market Savings
– Elite Money Market Account
– Retirement Money Market

Certificate of deposit(CDs)

Documents required and bank regulation differs by state. But most of the bank ask for;
– Government-issued ID, including a passport or other photo ID.
– Social Security number.
– Proof of your physical address, such as a utility bill.
– Any immigration forms.

Creating a business bank account requires the following few simple steps to get you working quickly. This process includes :
– Determining the right type of bank account
– Selecting the right bank
– Knowing what you have to pay
– Providing the required documentation

Virtual Office

Follow the five steps to creating a virtual office;
– Go for a virtual office solution
– Choose a physical location for mailing address
– Pick & customise the services
– Purchase the service
– Complete your US Postal Form 1583

Many of the small and medium home-based businesses efficiently use a virtual business address instead of their home address to place on Limited Liability Company (LLC), websites, corporate documents, and business cards. This gives more professional touch to your business.

You can find many experts online, who in general take a maximum of two business days to set up your virtual office. The process started just right after you have placed your order and the initial setup gets completed within a few hours.

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