Getting Incorporated in the US, and living in India

r2i_puneite · Post by **r2i_puneite** » Sat Oct 13, 2007 12:42 am

Hello Gurus,

We r2i-ed couple months back and now I have an offer to work independently for a US company, on an hourly basis, from India.

For this, I would have to incorporate myself in the US. Any thoughts on how I would do that from India ? Also, how would that affect my tax status in the US and in India ? Would I have to pay taxes in India on my income in the US (I will be RNOR for the next 2 years), or would income from a S corporation (or C corporation) be exempted from Indian taxes ?

Finally, though not related to taxes, have a generic question - does anyone have any thoughts on whether to form a sole proprietorship or a S corp or a C corp, for a one-man-show company ?

Thanks in advance.

layman · Post by **layman** » Sat Oct 13, 2007 12:52 am

You didn't mention whether you are an USC.

r2i_puneite · Post by **r2i_puneite** » Sat Oct 13, 2007 10:29 am

Sorry about that .. yes, my whole family is USC.

layman · Post by **layman** » Sun Oct 14, 2007 12:56 am

I cannot answer you completely but I will try. When you incorporate a company in US, you have to have an address. There are companies in US that will provide you a mailbox or address and charge you for that. But, there will be some requirement like once in an year you have to be present in the state of incorporation for annual meeting or something like that. One thing is very clear. As a US citizen, your global income is taxable. Uncle Sam doesn't care whether you live in US or India or decided to live in a ship in mid ocean, if you are a US citizen. In India, you will pay tax after RNOR period. If you are a resident of India, India wants you to pay tax on your global income. But, you can claim credit for double taxation. Will your payment be made in US $ to the US company address? If that is the case, US has more right for tax. So, you will pay the US tax and pay Indian tax on the amount you have to pay above the double taxation credit limit.

r2i_puneite · Post by **r2i_puneite** » Sun Oct 14, 2007 2:39 pm

Yes I will provide a US address for the company and this is where payments would be made.

Any ideas on what is a better option - sole proprietorship, LLC, S corp, C corp etc ?

moreqa · Post by **moreqa** » Sun Oct 14, 2007 9:20 pm

[quote]
But, there will be some requirement like once in an year you have to be present in the state of incorporation for annual meeting or something like that.
[/quote]

How do US people living in other countries take care of this condition?