Corporation for Resale Books thru Amazon

[mytownparty]

If my profit is under $50,000 - federal tax will be 15%, no S corp is considered.

Amazon will sell inventory for my Montana-corp and ship the books from their warehouses.
No sales tax in MT. Amazon will collect other, as required.

I want the money to "flow" to my Wyoming-corp, no corporate income tax in WY. Zero profit in my MT corp is OK.

How to "design" that flow?
Should I independently own BOTH corporations?
Should one own the other? Thanks.

 

[I'mTheFather]

You already asked this question, or one similar. You received a reply. Did you delete the thread?

 

[I'mTheFather]

Ah, here it is:

http://webcache.googleusercontent.com/search?q=cache:0pSSQl1R9v0J:forum.freeadvice.com/starting-operating-business-3/corporation-resale-books-thru-amazon-615092.html+&cd=2&hl=en&ct=clnk&gl=us&client=safari

 

[mytownparty]

No need for S corp

When income is under $50,000 - federal tax is only 15%.

Do you have an answer to my question - how to "design a flow" of funds from Montana corp to Wyoming corp?

 

[I'mTheFather]

How about you answer the questions asked in your first thread:

Not enough information here. Just because you create a shell corporation in a state without sales tax doesn't mean you don't have to collect sales tax in states you have a nexus in.
What is your goal. There's still federal tax even in states without a local income tax. Usually, you can avoid corporate taxes entirely by vehicles such as S corporation which passes the corporate income to the shareholders.

Where are YOU located?
Where are the books going to be shipped from?
Is this an entirely one man operation?

Your best bet would be to talk to a professional tax advisor.

 

[FlyingRon]

How about you answer the questions asked in your first thread:

Those were my words you quoted but they are appropriate. I suspect that his attempt to create these shells will neither solve the problem nor be necessary. A single S corporation in his home state and collecting and remitting the sales tax will do it. If you are shipping the books yourself, then you create a nexus in your home state and their laws apply no matter where your corporation is created. Similarly you can't just dodge income tax by "claiming" you live somewhere you really aren't.

Answer the questions and then we can help you.

 

[I'mTheFather]

Those were my words you quoted but they are appropriate.

I know, but couldn't quote it the usual way through the cached thread. Figured the link was enough for credit.