What level do I pay tax at in the US?

The amount of tax you’ll pay when operating your business in the US will vary depending on a number of factors. As a general rule, however, corporate income tax is roughly 39% (35% at the federal level, and 39% once state taxes are accounted for).

It’s impossible to tell you exactly how much tax your business will pay while operating in the USA. That’s because tax rates vary from state to state, and it also depends on how much money your business is making, too. The amount of tax you pay will also depend on which state you’ve chosen to incorporate in, which other states you’re doing business in, as well as how your business is structured.

However, as a general rule of thumb, expect to pay basic corporate income tax at a rate of roughly 39% (35% at the federal level, with another 4% made up of state taxes). This tax is calculated on the net income your business earns while operating over the course of a year.

There are specific taxes you’ll need to pay at the federal, local and state level, so make sure you have a reliable accountant to help you handle tax returns, payments and tax-planning if you’re operating in the USA.

Similar questions about 'Establishing a presence'

What do I need to open a US bank account? Who can help me set up an American bank account? What happens if my US employee signs off the sale of goods or services? How do tax levels vary from state to state? What are the time differences between the UK and USA? What is the cheapest way to explore the US market? How easily can I withdraw from the US if I change my mind? Is the USA the largest importer of UK goods and services? Is it easy for a British business to expand into the USA? Is now a good time for a UK business to expand into America? How long does it take to start trading in the US? What are the tax implications of setting up a business in the USA? Do foreign corporations have to report profits if they are operating in America? Has Foothold America helped UK-based businesses to expand into the US before? Why does it take so long to set up a subsidiary in America? Why do I need a Federal Tax ID number? Where can I get support and advice if I am considering expanding to the US? Are my US employees allowed to sign off on sales of goods and services? How do I set up a company in the US? How do I expand my business to the USA? Why should I explore the US market? What is a subsidiary? Why do I need a subsidiary? What is a C corporation? Should I set up a C corporation or an LLC? How is an LLC taxed? How is a C corporation taxed? Why do I need an EIN? What is a Federal Tax ID number? How do I open an American bank account? Why does my business need an American bank account? What is the easiest way to explore the US market? Is there a low risk way to explore the US market? Is my business ready to explore America? Can a British business explore the US market? What should I consider when choosing a location for my expanding business? Who can help me to set up a subsidiary in the USA? Will my US employees expose my business to US corporation tax on sales they generate? What can the US market offer my business? How do I form a subsidiary? Which states should I set up my subsidiary in? How much does it cost to set up a subsidiary? How long does it take to set up a subsidiary? What is an LLC? What is an EIN? What is the IRS?

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