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Frequently Asked Questions

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How do I protect my personal assets from LLC business debts?

LLC assets are separate from partners' personal assets. This means that if there was a lawsuit against the company, it would be solely responsible. In other words, the company’s assets would be the only ones affected, and not those of the partners.

How are LLC taxes reported?

These companies are taxed on a personal basis, that is, the taxes are responsibility of the partner who owns the company, and not of the company itself. These are calculated depending on the value of the profits of the company distributed among the partners according to their percentage of participation. To learn more about this topic, click here.

Can I register an LLC as a single member?

Yes! An LLC can be formed by a single person, which is very common for this type of company, as it protects the assets of this partner against any commercial debt.

Are LLCs for small businesses only?

Not necessarily, this type of company is stipulated for small and large companies.

Do I need to have an American partner to create an LLC?

The partner (s) of an LLC may be foreigners. There is no requirement that LLCs have at least one American partner.



How to protect my assets by forming a corporation?

The assets of the Corporations are separated from the personal assets of the partners. This means that if there was a lawsuit against the company, it would be solely responsible.In other words, the company’s assets would be the only ones attacked, and not those of the partners.

How is a Corporation taxed?

Corporations (CORP) present and pay income tax as a company. The tax charge is calculated with a fixed rate of 21% on the value of the net profit of the company in its last fiscal year.

Inc. is it the same as Corp?

Inc is an abbreviation for Incorporation and Corp is an abbreviation for Corporation, both are acronyms used when forming a Corporation and there is no difference between the two in terms of their legal and tax structure. However these are not interchangeable. Once a corporation is incorporated as an INC or CORP, it must abide by this choice.

Is a corporation only for large companies?

Not necessarily. This type of company is stipulated for small, medium or large companies without any limit of partners.

What are the differences between C-Corp and S-Corp?

The C-Corp differ mainly from the S-Corp in that the latter can be constituted only by American partners and have a maximum limit of 100 shareholders. In addition to their taxation process that you can see in more detail here.



Who can own an S-Corp?

Owners of an S-Corp must be American residents.

Can an S-corp be constituted by a foreigner?

No, an S-Corp cannot be constituted by foreigners. The ownerships can only be american citizens or residents.

What is the maximum number of shareholders that an S-Corp must have?

S-Corp can only have a maximum of 100 shareholders.

How are S-Corps taxed?

The S-Corps are taxed in a similar way to an LLC. It means these are taxed in a personal capacity and their value is calculated depending on the profits of the company distributed among the partners according to their share ownership. For more information click here.

How is an Scorp managed?

An Scorp is managed by shares. Meaning that this type of business can sell shares on the stock market.

Income tax
Income tax

Income tax

How is the tax withholding refund made?

After filing the tax, in case you have an amount in favor of the initial withholding paid, the IRS will issue a check or credit to the bank account associated with the members of the company. Contact us for more information.

Does the tax withholding apply to American citizens?

No, the withholding is charged only to foreign partners of an LLC Partnership.

Do the foreign partners of a Corporation have to pay a withholding just like partners in an LLC?

For foreign partners of a Corporation, without tax residence in the United States and residents in countries where there is no double taxation agreement, 30% of the decreed dividends must be withheld

For residents, companies and foreign partners of a Corporation in countries that have a double taxation agreement, 21% of the decreed dividends must be withheld.

What happens if the tax return and payments are not made on time?

The federal entity can calculate the estimated value of the taxes and send the formal requirement. It also can charge interests and penalties to people who pay taxes late and file lawsuits against tax evaders. If you don't agree with the requirement, you must file an appeal.

Is there a tax extension in case I can't file before the stipulated date?

Yes, the tax extensions may vary according to the type of company. However, the penalties and interest will continue to run from the first declaration date. You can contact us for more information.

Sales tax
Sales tax

Sales tax

I have a merchandise warehouse located in a different state in which I formed it. Do I have to file sales tax in both states?

Yes, since it complies with the principle of territoriality according to the location of the merchandise.

How do I know which items are taxed?

Each of the states handles different percentages and exceptions that can be consulted with one of our experts. Contact us.

Where do the collected resources go?

Sales tax is used for investment in state projects such as schools, highways, and fire departments. Many areas rely on sales tax to fund their budgets, so the state takes collecting it very seriously.

If my business is in one state and I had sales in a different state, do I have to file sales tax in both states?

This tax is governed by the principle of territoriality, meaning that if the company reaches a sales amount that meets the requirements of that state, it will require it to also declare and pay sales tax there.

How do I know if my business has to pay sales tax?

The company must pay sales tax if:

  1. Sells ​​the product within the state.
  2. Sells ​​to the final consumer (as a retailer).
  3. If the product or service the company sells is taxed in the state.