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Where Taxpayers and Advisers Meet

Setting up business

Startup
Posts: 1
Joined: Fri Oct 30, 2020 10:43 am

Setting up business

Postby Startup » Fri Oct 30, 2020 11:00 am

Hi

I am looking a setting up a small business selling on Amazon. All the courses suggest that selling in the US is better to start as demand is much higher on the US platform. I would like to set up a company in the UK as I’m UK based but not sure what the tax implications would be for the two scenarios I have in mind:

1- I trade in the US as a UK based company: would I have to pay corporation tax in both jurisdictions?

2- I trade in the US as a US company: would I have to pay tax on dividends in both jurisdictions?

I’m a bit confused and not even sure if I’d need a UK or a US accountant for this. Would ideally want someone with both.

Also, as I don’t have any income at all now and want to keep my start up costs low, is it easier to just go with option 1 and in time look to incorporate in the US if it makes sense?

Any advice will be really appreciated.

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