Legal Question in Tax Law in California
What is best way for foreign investors to invest in new company in the US to pay the lowest tax rate? As an individual, US LLC or Corp or Foreign corporation/entity?
1 Answer from Attorneys
Your home country will have jurisdiction over the individual taxes that you pay. If you establish residency in the U.S., with the proper visa, then you can pay U.S. federal and state taxes. If there is a treaty with your home country, then you may have a tax credit system for avoiding double taxation.
With respect to U.S. corporate tax rates and state rates, the U.S. is not competitive. Tax rates tend to be lower elsewhere. If you register as a foreign corporation in a state such as California, then you will be taxed based on the volume of business done in California. In other words, you have asked a very complicated question.