[philiphodgen]

Until your revenues are huge I think your idea is fine. Keep as simple as possible. Leave a bit of profit in the Delaware company. Keep your paperwork straight.

This is pragmatism, pure and simple:

- you are making sales (yay)

- if you get audited the challenge will be on the basis of the price that your European company gets from the Delaware company. The worst case outcome probably isn't too bad.

- Unless you are making tens of millions, your Delaware corporation will be a tiny taxpayer among all of the corporations in the USA. Low profile. Clean paperwork. Don't attract attention etc. :-)

- one last thing. Look at the treaty between your country and the USA. Sometimes there are odd little things you can use to pull business profits out of the USA easily and without tax. Or less tax anyway.

If you don't make a sale you don't have a tax problem. So first make a sale.