Firm with foreigner....best type?

Asked about 1 year ago - Beaverton, MI

I am interested in starting a firm (publishing business) with a foreign national. The company needs to be registered in the US (address will be in Michigan), but we will run the company from abroad. I understand the basics regarding liability and potential taxation issues, etc. Seems like there are a lot of pros and cons between partnerships, LLCs, Corps, etc. without any one coming up the absolute best. Based on advice....What form of company would minimize the issues and maximize both benefit and ease/cost of set up / operation?

Attorney answers (6)

  1. Patrick D. Cole

    Contributor Level 8

    2

    Lawyers agree

    Answered . This question may seem simple but it is much too complex to answer here in a few sentences. My high suggestion is to consult with very experienced legal counsel before you make any moves.

    Every case is different. As such, the answer cannot be considered legal advice nor can it constitute an attorney-... more
  2. Alan James Brinkmeier

    Contributor Level 20

    3

    Lawyers agree

    Answered . LLC is popular

    Given your unique facts, hire counsel to nevigate the minefields out there.

  3. Frank Anthony Natoli

    Contributor Level 20

    2

    Lawyers agree

    Answered . I bet you can anticipate our answers: it depends.

    You really need to discuss the particulars over with a lawyer in more detail. I favor LLCs, which will also allow for the foreign, non-resident ownership. Based on your facts, I would assume that an S-Corp will be unavailable to you, so double taxation may present an issue with the C-Corp, but it does greatly depend. In many cases, the C-corp will be much more practicable.

    The US Dept of Commerce also requires a compliance survey to be submitted anytime foreign ownership of a US entity is 10% or greater (see BE-605: http://www.bea.gov/surveys/pdf/be605iweb.pdf).

    I will link you to some general helpful info below and Most of us here, including myself, offer a free phone consult.

    Best regards,
    Frank
    Natoli-Lapin, LLC
    (see Disclaimer)

    The law firm of Natoli-Lapin, LLC (Home of Lantern Legal Services) offers our flat-rate legal services in the... more
  4. Ronald J Cappuccio

    Pro

    Contributor Level 15

    1

    Lawyer agrees

    Answered . I know you would like a simple answer, but there really isn't any. If the foreign owner is getting the equity interest through a Corporation, then you may need to set up a Corporation in the US for the foreign owner's tax purposes. Normally, I would recommend a LLC, but that would mean your foreign partner would need to get it. TI and and also file a nonresident return on the US income. You really need to talk to a good tax and business lawyer to structure this business properly. Do not try to do this yourself!

    I hope this helps!

    Ron Cappuccio
    www.TaxEsq.com

    If you do not like this answer or disagree, please look at one of the other answers provided. It is not necessary... more
  5. John P Corrigan

    Contributor Level 19

    Answered . Oh if it were so easy.....appreciate you trying to cut to the chase but not doable. Even in a domestic setting it requires substantial info and in an international setting you can multiply the issues by a factor of 10.

    My answer is not intended to be giving legal advice and this topic can be a complex area where the advice of a... more
  6. Todd Matthew Heine

    Contributor Level 13

    Answered . We regularly advise budding multinationals on these issues. Your answer depends on many factors, including:

    - Where from abroad will you operate?
    - What kind of revenue and expenses to you expect?
    - Where are your customer bases?
    - How do you intend to use profits?
    - What are the tax rates in the various countries you are looking at?
    - Where would you like to engage in agreements?
    - How many employees will you have?
    - Where are your physical operations?
    - What is your exit strategy?
    - How are you investing in operations?

    These questions will guide initial consultations.

    Portage Bay Law PLLC is an international law firm that give companies doing global business the knowledge and... more

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