Having a company (e.g., LLC or a corporation), on the other hand, protects you from personal liability in case anything goes wrong. Some states (e.g. Delaware) allow anonymous company formations, if you prefer not to put your name “out there” in the Internet world.
– C Corporation. The owners are shielded from personal liability for the debts and obligations of the corporation. C Corporation is the most common form. It’s the “regular” corporation that you get by default when you file for incorporation with a state. C Corp is taxed under the Internal Revenue Code, Subtitle A, Chapter 1, Subchapter C, unless it chooses to be taxed under Subchapter S. C Corps are subject to double taxation: first, C Corp itself is taxed annually on its earnings; and second, the shareholders are taxed when they receive these earnings as dividends. A California C Corp is taxed on its net income at a rate of 8.84 percent; it is also subject to a minimum annual franchise tax of $800. The estimated annual tax must be paid in four installments. C Corp. must adhere to certain formalities in order not to lose its corporate status and protections. For example, it must create bylaws that regulate shareholder meetings, define the scope of directors’ authority, etc. Owners can issue and sell stock to investors to raise capital.
– S Corporation. An S Corp is a corporation or any business entity, (i.e. a partnership or an LLC that chooses to be taxable as a corporation), that elects to be taxed under Subchapter S of the federal tax code. S Corp is not taxed at the entity level, and profits flow directly to the owners. California S Corp is taxed on its net income at a rate of 1.5 percent. The estimated annual tax must be paid in four installments. Can have no more than one class of stock and no more than one hundred shareholders.
– Have you accounted for duties, taxes and fees associated with imports? US customs/duties fees, merchandise processing fee (customs), harbor maintenance fee (customs)
– The Importer Security Filing (ISF) requires importers to provide advance shipment information to CBP. The ISF Bond.