Another business question then.....

[Francois_Dumas]

I'm not letting the old brain get in the way of doing exciting new things.....

 

.... so here I am working on setting up a US company, and a US bank account. I've done a lot of research on it, talked to a variety of people State side and here, and 'think' it is a good thing to do.

 

I can found an LLC (Delaware) and get an EIN number. My Dutch bank has offices in the States and will help me there.

 

But.. it never hurts getting a third opinion.

 

Since more than 50% of my customers are US citizens, earning US $'s, dealing with a European company is daunting these days, especially when having to pay in Euros! (I know, I've been there all my life).

Some US-based companies also require a Social Security number or EIN number, or even a physical address i the States, to use their services (like some of the printing-on-demand outfits).

 

So basically I figure... I'm not greedy, I can (partly) sell my products in US$'s, leave them in the US, pay my US partners directly from it, and hope for a change in exchange rates in future. So basically dealing on two different continents with two different currencies, instead of moving all the money around and make the banks rich.

 

Since there are 'deals' between the various IRS's, I should be protected from paying DOUBLE tax (single is bad enough as it is). I am not too worried about that.

 

I am NOT trying to be a smart ass... my take on it is that I'd rather sell 1000 copies of anything for $ 35 than not sell anything because it is priced in Euros.

 

Just thinking.... would there be anything else that would make this a BAD idea???

 

[Ken H.]

We're kind of in a similar situation in that we (Donna & I) conduct business in the USA and in Canada. But her being a Canadian citizen and me a USA one makes it a bit easier. Here's a couple of random thoughts...

 

As an LLC you won't need an actual social security number, only an EIN number.

 

While a tax credits agreement will keep you from getting truly double taxed, most agreements are not 100% credit the 'home' direction, so there is still a ding. 20% or similar.

 

There are services here that duplicate the 'look and feel' of a true street address, while actually still being only a postal box address. They will accept deliveries etc. It's a good way to create a virtual storefront.

 

Put a US business attorney on retainer. Yes it's a hard cost to swallow, especially when just getting started, but something always pops up suddenly where you want someone to intervene on short notice. Just navigating the maze to set up a LLC by yourself is tough (but not impossible).

 

With the rapidly sinking US dollar though, is this a good idea in general? I don't know.

[Dave McReynolds]

LLC's can elect to be taxed as partnerships, corporations, or S corporations. The usual election is to be taxed as a partnership, meaning all profits flow through to the owners. S corporation is out since it can't have any foreign shareholders. Probably you'll want to be taxed as a partnership, to avoid the double-tax, but you should be aware that the option to be taxed as a corporation is available. This would be an advantage primarily if you wanted to accumulate some capital in the corporation and take advantage of the lower rates on the first $50,000 of income.

 

While you're organizing your LLC as a DE LLC, you should be aware that you are required to register and pay the LLC fees in any other states in which you have a physical presence. CA in particular is very aggressive about pursuing non-CA entities that do business in CA for LLC fees.

 

Other than that, I can't help you much, as I don't know much about the international tax angles.

[Francois_Dumas]

Thanks for the thoughts!

 

My LLC will only be virtual, really, I deal through the internet only.

 

I doubt this particular venture will make more than 50K.. I would be VERY happy if it did It is more like a back-up to some of my business. And an alternative for some customers/partners.

 

I would set it up through either http://www.incnow.com or http://www2.valisinternational.com/?pg=defaultbody

 

My bank has offices in California, but that shouldn't matter methinks?

 

As for the US$..... how low can it go !!??

[Dave McReynolds]

My bank has offices in California, but that shouldn't matter methinks?

 

No, you shouldn't have to worry about that unless you have an office, or send people into CA on a regular basis.

[Matts_12GS]

Francois,

I have plenty of garage space if you want to buy a bike and leave it here. I'll keep the battery charged and the tires inflated for you.

 

It's the least I can do, and a service I provide for some friends in other countries...

[Joel]

Disclaimer: This is not legal advice, or a solicitation of an opportunity to provide it.

 

IMO, for what you're doing, there isn't any magic or other compelling reason to choose Delaware as a domicile, and you might find that the ongoing costs associated with maintaining a LLC in Delaware could be higher than other states that could be just as suitable.

[Francois_Dumas]

Francois,

I have plenty of garage space if you want to buy a bike and leave it here. I'll keep the battery charged and the tires inflated for you.

 

It's the least I can do, and a service I provide for some friends in other countries...

 

Thanks Matt, duly noted and appreciated But I am not anywhere near buying another bike yet

[Matts_12GS]

Thanks Matt, duly noted and appreciated But I am not anywhere near buying another bike yet

 

No worries, you know you've always got a loaner if you need it.

[tallman]

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For a charge, no.

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Dailate Dollurshort

[Francois_Dumas]

[George Brown]

Deer Mistar Duttchy,

I am of the opionon that I can bee of servis to you.

I have made much experience of conversion to USA dollars from many happy clients who embraced trust in me is of many known times.......

Your partner, and friend,

Dailate Dollurshort

 

LMAO

[Joel]

That's odd, Tim doesn't look the least bit Nigerian.

[Matts_12GS]

That's just funny.

 

[Francois_Dumas]

That's odd, Tim doesn't look the least bit Nigerian.

 

Tim who ???

 

 

By the way, I sent you a PM, Joel.

[David]

There are several states that are basically "incorporation mills" in that they make it cheap and--what comes next is the huge draw--they allow corporate officers to be anonymous to the public, and unfortunately provide very little policing of illicit corporate deeds. Nevada is one of those--Delaware is not.

 

All that to say that there WILL be some stigma attached to a "shell" corporation in certain states.

[Francois_Dumas]

Hi David, yes, that IS something to bear in mind. Nevada even here is rapidly associated with 'Vegas' and other less-desirable things.

 

My reasons are not to hide in any way (tax departments the world over know me already )and I hope I can counter the possible bad image by being open on my websites (where you can read about me, who I am and what I do).