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Delaware Tax Law Questions & Answers
1 Answer | Asked in Tax Law, Business Formation, Business Law and International Law for Delaware on
Q: Legal ways to start an US business from a country that has no double taxation treaty with the US and avoid double taxed?

E.g Delaware often mentioned as an offshore location and a business friendly state. Can I avoid being double taxed somehow (legally)? I would gladly pay taxes in the US. If i can't find a solution soon, i have to find another english market, unfortunately.

James L. Arrasmith
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answered on Mar 8, 2024

Starting a business in the US from a country without a double taxation treaty can indeed present challenges, but there are legal pathways to minimize the impact of being taxed in both jurisdictions. Delaware is a popular choice for international business owners due to its business-friendly laws,... View More

1 Answer | Asked in Tax Law for Delaware on
Q: I have a LLC in Delaware. I have used a foreign address for my llc. Should I pay Income Tax?

I have a LLC in Delaware. I have used a foreign address ( Sri Lankan Address) for my llc. I am living in Sri Lanka ( Foreign Country ). If My LLC earning money in usa, should i pay tax individually to the usa and should pay tax by my llc?

Blake Goodman
Blake Goodman
answered on Jul 26, 2023

Your LLC is a flow thru entity in the US. It doesn't pay tax, even though it may have to file a return (partnership or your individual Sch. C return). You have to pay taxes though individually for LLC income, regardless of you not living in US. US citizens pay worldwide income. You can get a... View More

1 Answer | Asked in Business Formation, Business Law and Tax Law for Delaware on
Q: I left a company I cofounded but still have 50% share. Would I be personally liable if the company does not file taxes?

I cofounded a S corporation in Delaware a few months ago and left the company as the board member and employee after a couple of months due to disputes with my partner. I still kept the shares (50%) because I was not compensated for the work I did. The company was a start-up and did not have any... View More

D. Mathew Blackburn
D. Mathew Blackburn
answered on Feb 19, 2020

Depends on what's in the operating agreement/by-laws. What was the underlying entity that was S-elected? S-corps cannot be created at the state level, you have to have a registered entity upon which to elect S status. The IRS will use the entity law to determine owner liability and... View More

1 Answer | Asked in Real Estate Law and Tax Law for Delaware on
Q: If I sold a mobile home and they have not transferred title do I still have to pay county and state taxes on it?
Bruce Alexander Minnick
Bruce Alexander Minnick
answered on Feb 15, 2020

Yes, because the county and state will put tax liens on the mobile home--whether you have the title or not.

1 Answer | Asked in Tax Law for Delaware on
Q: My mother passed away and left me and a sibling a home we live in md do we have to pay taxes when we sell the house
D. Mathew Blackburn
D. Mathew Blackburn
answered on Nov 20, 2019

You'll have long term capital gains (Carryover holding period from the deceased) equal to the sales amount less the fair market value on the date of death (due to stepped up basis) (or alternate valuation date if that was used), less any costs of sale.

It's a capital asset with...
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1 Answer | Asked in Real Estate Law, Tax Law and Business Law for Delaware on
Q: What's the best state to open a stock/real estate holding company with a nonresident alien and a legal resident owner
Bruce Alexander Minnick
Bruce Alexander Minnick
answered on Jun 25, 2019

Before you start looking for types of "stock/real estate holding companies" you should call an Immigration lawyer and ask them if what you are trying to do is possible.

1 Answer | Asked in Tax Law for Delaware on
Q: Can I use the tax treaty between the US and Portugal to pay taxes only in my home country?

I recently incorporated a LLC company in Delaware. I'm a Portuguese citizen living in Portugal. The products we sell are manufactured in the USA by a third party manufacturer, then shipped to a USA third party fulfillment center, and from there shipped to our customers. I don't own any... View More

Bruce Alexander Minnick
Bruce Alexander Minnick
answered on May 24, 2019

Free practical advice offered for the last 41 years to people starting or operating their own small businesses:

The main difference between successful small businesses and those that fail within a relatively short period of time is good legal advice. The owners of most successful small...
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1 Answer | Asked in Business Formation, Mergers & Acquisitions and Tax Law for Delaware on
Q: How can I optimize a sale of business assets when the business is no longer in good standing?

In 2015, friends and I started a business. We allocated shares, and set up a vesting schedule. In 2016, we decided to allow the business license (Delaware) to lapse and operate with funds from an existing LLC business I own, however, the other partners do not benefit from the LLC business.... View More

Jonathan R. Roth
Jonathan R. Roth
answered on Aug 14, 2017

More information is needed to give you more detailed advice, but you have two basic options, revive the DE entity and sell the business or document the transfer of the business to the LLC and have it sell the business. The devil will be in the details. I would recommend you sell the assets of the... View More

1 Answer | Asked in Tax Law for Delaware on
Q: If you're renting a home, who is responsible for paying the taxes on said property, the renter or the owner?
Adam Studnicki
Adam Studnicki
answered on Jul 18, 2015

I don't practice in Delaware but, generally speaking, the owner is responsible for property taxes but potentially could shift that to the renter under the terms of the lease. A DE lawyer can verify.

2 Answers | Asked in Tax Law for Delaware on
Q: how long does it take to incorporate a company in the usa...llc

Thinking of registering a limited liability company in the usa, would basically pay taxes in the usa

Charles Snyderman
Charles Snyderman
answered on Jul 27, 2014

It takes as little as one day in Delaware

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1 Answer | Asked in Tax Law for Delaware on
Q: If you own your house but it is in a MHP, can the gov take your house if you owe property taxes?
Charles Snyderman
Charles Snyderman
answered on Jun 26, 2014

I assume you mean can the government force a public sale of your house if you fail to pay property taxes. The answer is yes.

1 Answer | Asked in Tax Law for Delaware on
Q: What is the best way

Hello i have a business that i started in the middle of 2012. i had my x girlfriend set up a merchant account and it was deposited to the business account. we broke up and i paid the business tax on 2012 under my name and know she is harassing me. What is the best way because she got a letter from... View More

Charles Snyderman
Charles Snyderman
answered on May 12, 2014

Please explain: What is the best way to do what?

1 Answer | Asked in Tax Law for Delaware on
Q: How much can you Gift Tax to a relative and how many times a year can you do that!
Christopher M. Larson
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Christopher M. Larson
answered on Dec 27, 2011

You can gift up to $13,000 to each person per year without it counting against your lifetime limit. If you are married, you can make an election on your tax return and increase that amount to $26,000 per person, per year. But unless you have a large estate, this will not mean you are going to pay... View More

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