From: Italy

Dear TaxMama,

We have just opened a Delaware Corporation and a US Bank account. It is a sole owner Corporation: No activities, offices or clients in the USA.

Do we have to file a Federal Tax Form each year?

Giovanni

 

 

Dear Giovanni,

You bet you need to file a US tax return.

You opened that corporation in order to have a US bank account, probably to accept Visa and/or Mastercard purchases from US residents.

All the activities that run through that bank account are US activities.

As to Delaware, you simply need to file an annual Franchise Tax report and pay an annual fee.

Sorry to be the bearer of bad news. But US corporations do come with a price.

Besides, what it this? You want to collect money from Americans using US credit cards; but you don't want to pay back your share of the taxes on our purchases? Hey, buddy, that's simply un-American!

Best wishes,
Eva Rosenberg, MBA, EA