12 Questions to Ask BEFORE Forming a U.S. Entity

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These 12 questions below are not only important to ask, but are necessary to get the best answer and support. They apply to all foreign e-commerce sellers looking to establish a U.S. entity. Forming a U.S. company is not as simple as forming a single member LLC with a mail address. There is much more involved. These questions will help keep you on track when working with a U.S. entity provider.

US Company Formation

Ask these 12 questions before forming a U.S. company

  1. Do I Even Need to Form a U.S. Entity as a Foreign Seller?

    This leads to your options to sell in the U.S. as a foreign entity vs the advantages of using a U.S. entity.

  2. How Long will it Take to Form my U.S. Company Correctly?

    You will need to know the factors that will determine the length of time to form your entity, apply for the EIN, establish a bank account, as well as get into compliance with sales tax. Don’t get fooled by “incorporate in 24 hours or less” headlines; these usually lead to costly mistakes.

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U.S. Company Formation FAQs

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When you are forming a U.S. company there are some important FAQs (frequently asked questions) you should be asking before you get started:

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• Which entity is best to operate in the U.S.? Is it an LLC (limited liability company). If so, do you know how it is taxed? There are three options for you if outside the U.S. There are several factors that must be discussed including your gross revenue and net profits, goals with those profits, are partners involved, tax treaty with your country…

• Should you ever consider doing business in your own name? Operating a business as a sole proprietorship in your name is an option, it is low cost and in some situations a good starting point to “test” if your U.S. business will get off the ground. Long term there is too much risk with this business structure and for some industries too much risk even as a starting point.

• Which state is best for your situation (Nevada, Wyoming or Delaware)? What are the factors to consider besides state filing fees or state tax rates? Do you know any court history and which one will offer the best liability protection? Which one has the best U.S. economic benefit to your business?

• What are the U.S. tax rules for a corporation vs an LLC? A C corporation may have lower tax rates but it may not be best for your overall situation. On the other hand, an LLC taxed as a partnership will trigger three U.S. tax returns, which may not be bad overall, but it is something to consider.

• What are the U.S. tax treaties with your home country? Even if there is a tax treaty with your country is there a type of U.S. entity that may not be recognized in your home country?

• With a U.S. company will you need a work VISA?  Planning to come to the U.S. and now you have a U.S. company the key is not to mess up at the U.S. boarders! If you are planning to secure a work VISA in the future do you know which are the best options at the lowest cost?

The goods news is when you work with NCP as a client we will address all these FAQs plus you will have access to our professional resources as needed.

Take the next step to form a U.S. company with NCP and send us an email at support@launchwithconfidence.com or call us at 001-702-367-7373.

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How to Establish a U.S. Company & Bank Account (without coming to the U.S.)

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In the past you have contacted us about forming a U.S. company. Perhaps that was to open a U.S. merchant account, invest in U.S. tax liens or deeds, or perhaps you are selling on Amazon FBA to the MASSIVE $183 BILLION spent by U.S. consumers online this year.

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If you still have a need or if you have already forming a U.S. company (and want to know if things were established properly) I have a brand new free report that will walk you through all the steps to PROPERLY form a U.S. company AND bank account (which is very difficult as you probably know …and a real bank account).

Go ahead and grab my BRAND NEW REPORT (it’s free and you will have immediate access to the download).

How to Establish a U.S. Company & Bank Account (without having to travel to the U.S.)

To download your free copy now, go to http://budurl.com/USEntityLaunch 

After you download this free report today you will learn how to establish a COMPLETE U.S. Company & U.S. Bank Account quickly. This information-packed 17 page report tells you everything you need to know to launch your U.S. business with confidence.

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How to Establish a U.S. Company & Bank Account (without coming to the U.S.)

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Are you outside the U.S. looking to form a U.S. company?

Perhaps you are looking to open a U.S. merchant account, invest in U.S. tax liens or
deeds, or perhaps you wanted to market your online business to the MASSIVE
$183 BILLION spent by U.S. consumers online this year.

If you still looking to establish a U.S. company I have a brand new free
report that will walk you through all the steps to PROPERLY form a U.S.
company AND bank account (which is very difficult as you probably know …and
a real bank account).

Go ahead and grab my BRAND NEW REPORT (it’s free and you will have
immediate access to the download).

 How to Establish a U.S. Company & Bank Account (without having to travel to
the U.S.)

After you download this free report today you will learn how to establish a
COMPLETE U.S. Company & U.S. Bank Account quickly. This information-packed
17 page report tells you everything you need to know to launch your U.S.
business with confidence.

Need support with the formation of a U.S. company? Send me an email at
support@launchwithconfidence.com.

To download your free copy now, go to http://budurl.com/USEntityLaunch

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The Top 5 Mistakes to Avoid when Establishing a U.S. Company

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Forming a U.S. company will help you develop trust with the $163.8 Billion online market.
The challenge is that you MUST properly establish a U.S. company to take advantage of this
huge opportunity.

Let me share with you The Top 5 Mistakes to Avoid when Establishing
a U.S. Company:

1. Selecting the wrong state for their entity. You may know that the big
three are Delaware, Wyoming and Nevada. But what is best for your business
from a state tax point of view? Did you also consider which state provides
the best liability protection for you as a manager of an LLC or the
director or officer of a corporation? Nevada is by far the best and offers
the best value. Yes, Wyoming may be $400 less on the front end but with
less protection is that worth it? If your U.S. business is raising capital
or going public Delaware may not be a bad option.

2. Selecting the wrong type of entity for their business. If you go online
and invest $99 for a formation and guess as an LLC and don’t understand the
tax ramification or the U.S. tax treaties with your home country you may
end up paying thousands in unnecessary taxes! An LLC may be taxed in four
different methods
(even most American don’t even know that). Each one has
its own pluses and minuses. A corporation may be an option only if you
manage the taxes on an annual basis and don’t do something that will
trigger an audit (like a big year end expense back to your home country to
reduce your U.S. profits).

3. Not having a complete formation. Filing articles, obtaining an EIN and
having a U.S. mail address may get you started but by no means is that a
complete formation.
If that entity was attacked by the IRS or a lawsuit it
would not hold up for 15 minutes, according to U.S. attorney, Lee Phillips.
You must have a complete formation along a legitimate U.S. business address
that sends the proper business message.

4. Not having tax support for their U.S. entity.  Not taking into consider
what type of entity and who should be the owner in the U.S. only means you
are going to be disappointed when you realize how much extra taxes you may
be paying that was unnecessary. We have had clients who have saved $10K,
$20K or $50K or more by working with NCP and through our CPA
recommendations
to operate their U.S. business properly. Some countries
like Canada don’t even have a tax treaty for a U.S. LLC and you may be
double taxed. There is a strategy around that but you must know it up
front.

5. Not working with a company with the best resources to operate a U.S.
business.
Never underestimate the power of working with a company like NCP
with great resources and connections when it comes to U.S. banking, legal,
taxes, merchant accounts, immigration and top business connection to help
your U.S. business succeed! Recently with one legal connection we saved a
client over $20K in legal fees (
from the other U.S. attorney who was going
to take advantage of his situation). That type of resource will add up
quickly to your bottom line.

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