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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?

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. Best answer

    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/
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  2. 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 Specialization PATENTAX.COM This communication is general information and not legal advice, and does not create an attorney-client relationship. This communication should not be relied upon as any type of legal advice. Please note that no attorney-client relationship exists between the sender and the recipient of this message in the absence of either (1) a signed fee contract and (2) remission of an agreed-upon retainer. Absent such an agreement and retainer, I am not engaged by you as an attorney, nor is any other member of my law firm.


  3. 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 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 is www.sjfpc.com. and his blog is <http://frommtaxes.wordpress.com/> Mr. Fromm is ethically required to state that the response herein is not legal advice and does not create an attorney/ client relationship. Also, there are no recognized legal specialties under Pennsylvania law. Any references to a trust, estate or tax lawyer refer only to the fact that Mr. Fromm limits his practice to these areas of the law. These responses are only in the form of legal education and are intended to only provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply or make such reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received. By using this site you understand and agree that there is no attorney client relationship or confidentiality between you and the attorney responding. This site should not be used as a substitute for competent legal advice from a licensed attorney that practices in the subject area in your jurisdiction, who is familiar with your specific facts and all of the circumstances and with whom you have an attorney client relationship. The law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question or omitted from the question. Circular 230 Disclaimer - Any information in this comment may not be used to eliminate or reduce penalties by the IRS or any other governmental agency.

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