I am a Canadian and so is my partner. However we have decided that for incorporating our company we will do it in the US. Our choice has been delaware because that is what is highly recommended for online businesses and for people outside the US. So because of this I will be paying taxes to Delaware I assume. Can anyone tell me what the taxes are in Delaware? Do they require you to charge taxes for hosting or other online non-tangeable products? Any help would be great :)

I thought that everyone picked delaware because they don't even charge sales tax on tangible goods.

But you'll probably still need to pay taxes on your profit. Don't know what their rate looks like.

Hi,
Delaware and Virginia are great choices for internet companies. I
am glad to see that you did not pick Texas, becuase they have an
8.25 % internet sales tax that you would have to charge your
customers.

Sorry I could not help you very much,

Chris.

I would like to see the profit taxes and rates. Does anybody know them?

Delaware does not charge a sales tax :D

I would ask an incorporation site (usually their FAQ's talk about this) or a lawyer.. I bet they'd know all the ins and outs of incorporating in Delaware. I know its a good place to incorp. if you're planning on going public.. and there is no sales tax.

http://www.incorporate.com
http://www.mycorporation.com

Laterz,
raqworld

What do you define going Public. I know Canadians and Americians think a little differently about that so what is your definition?

Hey Netsolutions,
Congrats on breaking 1000 posts.. pretty amazing..

Anyway, my definition of going public is getting listed on the stock exchange.. like an IPO (initial public offering).. that might not be technically correct, but thats what most people I know think of when talking about "going public"..
I'm not for sure of all the legal reasons, but I've been told that if you are incorporated in Delaware, its good for raising capital and going public.

To quote from the book "Small Business Kit for Dummies" Pg. 37 para 3-4:
"Delaware, which has a well-developed body of corporate law, is also a favorite haven of incorporation. However, if you are doing business in another state and incorporate under Delaware law, you will have extra filings and costs. Delaware may make sense if the company is backed by a venture capitalist with a clear goal of going public.
Most states have pamphlets on how to incorporate with sample forms, which you can order by calling the Secretary of State's office. Or check out the website at http://www.legal-businessforms.com "

Laterz,
raqworld

I knew about the extra costs if you are in another state. Hell, I'm in another Country. That's why I was thinking of using www.mycorporation.com International LLC Package

Is it possible to register a LLC in canada?

Is there a tax free (the same as georgia and delaware)in canada?


Techi