I am an Indian want to open a LLC in USA,my business will be online services to US citizens what will be tax implications?

Asked about 2 years ago - Indio, CA

which states will be good option for me?as i will do the telemarketing of my technical services from India.LLC will be a single member company and even requires company bank account in US without visiting the states and don't have any visa is it possible to get one?any recommendation to do all this for me(any registered agent or company who do all this)

Attorney answers (3)

  1. Kenneth Allyn Sprang

    Contributor Level 15

    6

    Lawyers agree

    1

    Best Answer
    chosen by asker

    Answered . I have several Indian clients who are engaged in similar activities and
    would be happy to speak with you. We provide a "turnkey" structure to
    make the task as simple as possible for you. For the structure you
    propose, I would recommend organizing in Delaware. I organize LLC's and
    corporations regularly and have done that in a number of states. I find
    Delaware the state of choice for a variety of reasons, which I am happy
    to explain. Among other things, they are reasonable in price and very
    efficient. There is no tax to the LLC in Delaware other than an annual
    fee so long as the company is not physically doing business there. It
    is one of the few states where that is possible. Also the registered
    agent I use charges only $50 annually.

    The LLC can obtain an EIN and open an account. You could get a business
    visa to come if you need to do so.

    I would be happy to speak with you without cost. Interestingly I am
    currently doing the same thing for another client where some members are
    Indians and another is a U.S. citizen. However, in other instances the
    members are foreign nationals including Indians and Kuwaitis.

    Kindest regards,

    Ken Sprang

    /Kenneth A. Sprang
    Cicero, Mehta & Sprang, LLP
    1000 Potomac Street
    5th Floor
    Washington, DC 20007
    Direct Dial: (202) 677-4703 or (202) 683-4090
    Fax: (202) 677-4719
    /

    /ksprang@cmslawdc.com/
    IRS CIRCULAR 230 NOTICE:

    /In compliance with IRS requirements, we inform you that any U.S. tax
    advice contained in this communication is not intended or written to be
    used, and cannot be used, for the purpose of avoiding tax penalties or
    in connection with marketing or promotional materials./

    STATEMENT OF CONFIDENTIALITY:

    /The information contained in this electronic message and any
    attachments to this message are intended for the exclusive use of the
    addressee(s) and may contain confidential or privileged information. If
    you are not the intended recipient, or the person responsible for
    delivering the e-mail to the intended recipient, be advised you have
    received this message in error and that any use, dissemination,
    forwarding, printing, or copying is strictly prohibited/

  2. Curtis Lamar Harrington Jr

    Contributor Level 20

    4

    Lawyers agree

    Answered . Delaware has anonymous LLC ownership (I was told at a recent conference) and it may be a good reason.

    Other reasons are to choose states with no state income tax.

    To me, your big headaches will be your india operation. as a U.S. person (the LLC) it will have access to foreign bank accounts and services provided.

    Here is a short list of problems:

    1. Need for LLC to file form 3520 for money etc from india.

    2. Meeting all 6038D regs whether they are on the form or not

    3. FBar where the LLC has a foreign bank account

    4. Withholding which prevents money from flowing back overseas unless filed.

    5. Single member LLC is disregarded and so for tax (gasp!) you are treated as being the taxpayer. That means YOUR indian assets come into play as to 1-3 and withholding as to 4.
    I can't say right now what a single member LLC would get in terms of treatment/respect as a focal entity for 1,2,3.
    6. You may want something other than an LLC, such as a regular corp if you want privacy. You still have withholding, but because corp is a focal entity, ITS reach to India may not have as high a level of reporting as would your LLC taxed as a sole proprietorship.

    There are other concerns, these are the main ones on my mind right now.

    Please remember to designate your question's BEST ANSWER.

    Curt Harrington
    (562) 594-9784
    curt@patentax.com

    Curt Harrington Patent & Tax Law Attorney Certified Tax Specialist by the California Board of Legal... more
  3. Steven J. Fromm

    Contributor Level 20

    5

    Lawyers agree

    Answered . Both attorneys offer excellent advice. Mr Sprang even offers a free consult. What should be obvious from their comments is that you should not be doing this on your own and that you need corporate and tax counsel to assist you. I have read 100s of comments that Mr. Sprang has posted here at Avvo and you would be well served to at least speak to him about your sitatuation and to see if there is a fit between the two of you working together.

    Hope this helps.

    Please remember to designate a best answer to your question.

    Mr. Fromm is licensed to practice law throughout the state of PA with offices in Philadelphia and Montgomery Counties. He is authorized to handle IRS matters throughout the United States. His phone number is 215-735-2336 or his email address is sjfpc@comcast.net , his website for more tax, estate and business articles is www.sjfpc.com. and his blog is

    LEGAL DISCLAIMER Mr. Fromm is licensed to practice law throughout the state of PA with offices in Philadelphia... more

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

24,025 answers this week

2,738 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

24,025 answers this week

2,738 attorneys answering

Legal Dictionary

Don't speak legalese? We define thousands of terms in plain English.

Browse our legal dictionary