I have an idea for a business website and the guy who wants to create and manage the website is in India. We would like to form a partnership. How can we do that if I'm in New York and he is in India? We cannot go to each other as we both cannot afford the travel expense. Is there a special kind of contract/agreement we can sign to create the partnership overseas? How can we sign it?
Help and/or any advice will be greatly appreciated.
This type of partnership can be accomplished but I suggest that you hire an attorney as this can be very complicated. We recently assisted an individual who is creating a partnership with an entity in Germany. It took roughly 3 weeks to get everything in order because of the complexity.
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You can probably use a limited liability company for this business. The issue is "where will the LLC be established?" Will the LLC be established in New York? Or will you be better off establishing it in an offshore jurisdiction, e.g., Belize, and having that LLC register to do business in various places in the U.S.? You do not have to be in the same location in order to "sign" the contract; you can "sign" the contract in your respective locations and then send copies, as signed to each other. Both copies together constitute one signed agreement.
You need a competent business lawyer to help you determine how profits and responsibilities are to be divided, and how capital is to be contributed, among many other important decisions. There will also be important tax filings for which you will need a competent CPA. For example, as a U.S. person with 50% of a foreign partnership (if that's what you decide upon) you will need to file an IRS Form 8865. You may also have to file a Form 8938 under FATCA (the Foreign Account Tax Compliance Act).