QUESTION
Business Formation in the US for a foreign individual
Asked on Nov 12th, 2017 on Corporate Law - California
More details to this question:
Dear Sirs, Good Day ... I'm an Entrepreneur who wants to establish a US office to deal internationally in dental products and materials; i.e. representation of world wide manufacturers & creating a private label for a range of products. My business entity will not be operating i.e. in terms of selling to the US market however everything is outside the US sales. I was advised for a Delaware offshore company and so on; however I'm hesitant about it because I don't feel its quite legitimate. I would like to be in touch with a lawyer who can help me in this matter from (A) to (Z).
2 ANSWERS
Business Transactions Attorney serving Los Angeles, CA
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Doland & Fraade
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I have practiced international trade and business law for 40 years. My comtacts are doland@dolandlaw.com and 310-478-1000.
If "everything" is outside of the US, the reason for wanting a US entity is unclear. If there will be some presence in the US, then a Delaware corporation (or LLC) may be a waste of money if there will be employees/independent contractors and/or bank accounts in a different state.
Answered on Nov 28th, 2017 at 7:16 AM
If all your sales and revenues will be outside the US, why do you want to have a US company and pay US taxes?
Delaware has some laws and court procedures which are beneficial for large publicly traded companies which want to maximize their protection against claims by unhappy shareholders and creditors. I don't think you need that.
If you need to do business in the US, you should set up a corporation or LLC in the state where you will be located. No point in paying fees for both that state and Delaware.
If you appreciate this advice, please remember to refer me to your friends and family who need help. Referrals are still our best source of new business.
Dana Sack
Answered on Nov 13th, 2017 at 2:53 PM