Delaware, Double Taxation, Non-Residency, and State Taxes

[Investor]

Hi,

I am a foreign citizen studying Finance at the University of Florida and I wish to incorporate a business here in the U.S. in order to trade futures and securities on the financial markets. I will also probably employ people (U.S. Citizens) and use independent contractors here in Florida.

Here are my questions:

(1) Can I incorporate in Delaware, run the business from Florida, and not pay taxes in any state (thus only paying taxes at the federal level)?

(2) I heard that Delaware laws could allow to avoid double taxation, is that true? (if so, under which circumstances)

(3) Since I'm a foreign citizen, and only have a student visa, do I have to pay personal income taxes in the U.S? If not, must I still pay income taxes in my home countries (France & Sweden).

(4) So, is there a way I could end up paying less than 35% tax (or whichever lower amount of federal tax) on the gain I produce on my investments?

1. Delaware has no income tax for their corporations, but depending on the nature of the business you may be subject to taxation in other jurisdictions regardless of where you are incorporated.

Thank you for you answer:

1. According to the following website Delaware does have a state corporate income tax, it being 8.7% (taxfoundation.org/taxdata/show/230.html)
What does "depending on the nature of your business" mean? What if I'm not hiring anyone anywhere? (I could make a small LLC in florida and sublease the workforce to my Delaware corporation. My Delaware corporation pays the Florida LLC what it spends on wages and other employee-related expenses plus a 5% premium. That leaves very little income to be taxed in Florida. Additionally my Delaware corporation conducts trading on international marketplaces and doesn't have any employee anywhere (except for me, if I can avoid double taxation) so it can't be said to conduct business in florida only on the basis that it has its headquarters with no employee there, can it?)

2. Well, since they don't tax, any other tax liability wouldn't hence be double.
Of course, if you were incorporated in the state you are physically located and doing business you wouldn't be "double" taxed anyhow.

2. By double taxation is meant first at the corporate level and then at the personal level. As long as taxes are levied on individual income double taxation exists even if there is no state tax since the corporation is taxed federally anyways.

3. If you have US income, you have to pay US taxes (over some nominal amount).

3. What if I'm not paid, if I just own stocks and don't pay any dividends? And even if I am, would I really have to pay federal taxes on my personal income since I'm not resident in the US and will still probably have to pay about 60% tax in my own country?
That would have me end up with an after tax income of 26% without even accounting for possible personal income state taxation.

4. You shouldn't be paying 35% (at least federally) in the US. Even the short term capital gains aren't that high. Longer term get a more preferential rate.

4. Federal income taxes over $372,950 are $108,216.00 plus 35% of the amount over $372,950, so except for lower incomes, my corporate income tax rate tends towards 35%, which I do agree is overly high (about a century ago the federal tax rate was under 10%).
Most of my transactions won't qualify for long-term capital gain rates.

For someone who claims to be a finance major, you'd be better suited learning where to look this up rather than asking on a tangentially related legal board.

Do you think there aren't any competent people here that could answer my questions? If so, could you forward me to a forum where I could find the answers I'm looking for?