Choosing Between Private Limited Company, Partnership, or Direct Payment for Commission: What's Best for Tax Benefits?

Hi,

I am currently in the US, and I am from India. There is a seller of goods in the US, and I helped him identify a buyer in India. I might receive some commission for this service. I would need to share this commission with my friend in India, who also assisted in identifying the buyer.

Would it be better for me to start a private limited company or a partnership to receive the commission payment, or should I request that it be paid to me directly?

I have been considering that, from a tax perspective, it may be beneficial to receive the payment through a private limited company that I establish, rather than having it paid directly to me as an individual.

Please advise on what would be the best option in this scenario. Additionally, would a partnership be more advantageous than a private limited company?

Thank you.

It would be better to get the commission paid in your own name than through a private limited company (Search On Cite | Search On Google). In the case of a private limited company, you would have to incorporate a new company and maintain it regularly. On the other hand, if you get the commission in your name, you can just show that one-time income in your tax filings.

Usually, tax rates are lower for a partnership/proprietorship than for a private limited company, so I would suggest you just get it in your personal name.

Regards,