Forums: Discussions for entrepreneurs and small business.

I just opened a small printing company in Mexico (3 employees) that sells to transnational factories there.   All invoicing is done from the US side.  All operations are done on the  Mexico side, including sales.  A typical operation is: 

USA Customer places order to my USA company (S-Corp.)
My USA company places order to my Mexico company (no one works from the USA side, I just live in the US, so I place the order myself to myself so to speak).
my Mexico company produces and delivers the work to the Mexico operations of the USA company.
My USA company invoices the USA Customer/Company in the USA. 
my Mexico company then invoices my USA company.  Profits on the  USA side from where I would take my income.

I live in San Diego, CA and work in Mexico.  Since I do not fisically do any work from the US, I decided to open a Wyoming Corp and close my CA Corp to save on state taxes.  Question:  For EIN form SS-4, what do I put as my "county and state where principal buisness is operated"?  I would hate to put my home address in CA, and end of having to pay the $800 franchise tax.  I am barely in the black with this business, and  avoiding this franchise tax would be helpful.

I know how confusing this reads....hope someone knows what I am talking about.

Thanks in advance!!! :)

I think your best advice would come from a professional accountant or tax attorney in your area who would have experience in this "complicated" area.

Marka,
Do yourself a favor... and just run your business the way you`re running it now.
If the USA company has a physical address in CA, then that means that the company is established in the USA in the state of California... Who you do business with shouldn`t matter... I have designers in Russia that I pay in USD, and at the end of the year I just put it as independent contractors. As long as I cover my company.. .meaning tax and book keeping, that`s all that matters.
BTW.... I am planning on coming to San Diego, I`m In Corona CA, care to meet up and chat?
We usually have a Start Up Nation meeting in Southern CA... Would you like to meet up with the rest of the people? Look for my post... Southern California members...



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Edgar Monroy
Web Developer / Owner / Consultant
When starting your own business the need to "know-how" is greater than money!
http://www.nuevolution.net

Thanks.  I have a Wyoming address, and can get a WY bank account so I think I will just use that and save some money on corp state taxes.  My product never touches California, and the companies I invoice are all over the country.  Does this sound ok?

I will look for your post to see the dates of your meetings.

Marka,
I am a Cali Corp, and to be honest with you, $800.00 a year is not bad. I know I can incorporate in Nevada and try to cut corners, but "I live in California", and I don`t have the time to be traveling to Nevada just to go open a bank account, for the minutes, or any issue that may arise.

I understand that you are trying to cut corners, but!, you might end up complicating things for your company. Now, whether your product touches California or not, it doesn`t matter. If you`re in California, you`re a california Corporation and you have to charge taxes.

Now for the company`s that you invoice, that are all over the country... familiarize yourself with that states tax rules.




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Edgar Monroy
Web Developer / Owner / Consultant
When starting your own business the need to "know-how" is greater than money!
http://www.nuevolution.net

You should check the rates california travel towns have, you could save some money on corp state taxes. My aunt found and ingenious solution for this issue, I will ask her about this and will come with an reply.

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