Hi all, been lurking around in this forum for a while and really seeking advice here for my particular case.
I'm a Chinese passport holder(soon getting US green card) currently residing in mainland China, trying to start a new business that primarily gets nutraceuticals("dietary supplements") from US manufacturers/brands, and sells them in mainland China through E-commerce platforms like Taobao.
In this case, the products will first be shipped from the US, maybe layover in Hong Kong, and finally made their way to various bonded warehouses in mainland China(9% duty will be paid when a purchase is made).
The setup I'm currently thinking of is:
- US(Delaware?) LLC for ordering goods, and potentially opening up shops on Amazon and Shopify
- HK limited corp for handling the warehouse logistics, keeping sales profits, and easier banking access since I'm very close to HK, so this will be my primary front
I understand that once I become a US permanent resident, I'll have to report all my income to the IRS, so my questions are:
1, Are there any tax benefits for me to use the HK company as my primary front? Since I'll need to pay the US taxes anyway, should I just use the US LLC to avoid any hassles in HK?
2, Suppose that I open a holding company in a tax-free country, is that gonna help me save some taxes?
Would love to hear if there are any suggestions or insights on my current setup, thanks!
I'm a Chinese passport holder(soon getting US green card) currently residing in mainland China, trying to start a new business that primarily gets nutraceuticals("dietary supplements") from US manufacturers/brands, and sells them in mainland China through E-commerce platforms like Taobao.
In this case, the products will first be shipped from the US, maybe layover in Hong Kong, and finally made their way to various bonded warehouses in mainland China(9% duty will be paid when a purchase is made).
The setup I'm currently thinking of is:
- US(Delaware?) LLC for ordering goods, and potentially opening up shops on Amazon and Shopify
- HK limited corp for handling the warehouse logistics, keeping sales profits, and easier banking access since I'm very close to HK, so this will be my primary front
I understand that once I become a US permanent resident, I'll have to report all my income to the IRS, so my questions are:
1, Are there any tax benefits for me to use the HK company as my primary front? Since I'll need to pay the US taxes anyway, should I just use the US LLC to avoid any hassles in HK?
2, Suppose that I open a holding company in a tax-free country, is that gonna help me save some taxes?
Would love to hear if there are any suggestions or insights on my current setup, thanks!
