It is becoming more and common for US startups to estalish international subsidiaries or international startups flipping their company into the US. When this happens people ask if they will pay taxes on money earned by the non-US subsidiary in the US as well. The answer whether you are “double taxed” is it depends. Most founders assume that their startups would be taxed only on income generated by the US corporation (parent company) and that foreign income generated by non-US subsidiaries would be excluded from US taxes, until is is distributed to the US. This is a very common misconception. Unfortunately, even if the US corporation doesn’t earn a single dollar in its own name and doesn’t get a single…

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