This guide covers key issues of U.S. taxation of an international high-tech start-up corporation, its founders, and investors. It focuses on a specific perspective of an international start-up founder and their financial management team who are running or planning to run a U.S. corporation.
From the dashboard of a practicing CPA, an executive, big-picture view presentation is designed to take a meaningful look at the subject. Many of the key impactful concepts are collected here. We tried to arrange as much information in as little space as possible to make it concise and to the point.
What are the consequences of the direct ownership of a US corporation? Is there a tax on formation of an entity? How are corporations taxed? What is the tax on the payments received from the corporation? What are the tax consequences of corporate liquidations? How to pay the service providers? How are individuals taxed in the US? When does an individual become a US resident? What can be done to improve the tax results in the year of arrival? Is there a tax liability if a person is not a US resident? How are crypto transactions taxed in the US? What is DAO and how is it taxed? Do we have to pay state taxes as well?
These and many other questions get answered here from a practical perspective while staying grounded in sound tax rules and as informed by many years of experience.
The materials will help your CEO and finance team gain enough understanding of the relevant
U.S. tax concepts and issues to follow the fillings along and make timely decisions. Throughout the book, we offer examples and references to the relevant code sections and regulations not to overwhelm the readers but to equip them for further research, if necessary. Take a look at this booklet in its entirety while zooming in on the parts of interest, and jot down any questions relevant to your situation to ask your tax advisers. This will certainly add some meaning in your interaction with them.
The subject of tax is complex and ever-evolving. Our generalizations may not work for every situation, and some of our conclusions may become obsolete the next day after we put them down. This presentation is meant to be updated and expanded periodically. We’ll do it at least once a year in the summer or fall. We hope that you will enjoy taking a moment for an annual refresher at this big-picture level, just like we go through our rigorous, detailed annual updates. When a new player joins your finance team, please consider having them also take a look at the latest version of this booklet.
Good luck on your Journey!