I'm glad to have found this wonderful forum filled with useful information and nice & knowledable people. We'd deeply appreciate if someone can provide us with some assistance on forming a business for our venture.
An American friend of mine and I are thinking about starting an online retail business with two Chinese friends. We will take preorders of our products online and ship the orders directly from our supplier in China.
After some research, we are considering registering a Delaware member-managed LLC because of the relatively low franchise fee and simple formation process. But we have some pending issues:
- From my understanding, since none of us lives in the US (my friend and I are both living in China at the moment), technically our business will not have a tax nexus in any of the states. Does that mean we will not need to collect sales tax?
- What should we write in the the business address box when we file the certificate of formation? If I put down my parents' address in Cali, would that potentially create nexus even though I don't live there?
Thanks in advance!
While I’m sure there are some experienced people on this forum that may be able to answer your questions, you are better off speaking to an attorney about these matters. The last thing you want to do is make a legal mistake. It can cost you a lot more in the long run.
You might also be able to find answers to your questions here,
If you are earning over $100,000 a year, then a corporation is worthwhile. It can also protect you from lawsuits, but really are people likely to sue you for something? This depends on your product
There is no magic number at which a regular C corporation is better than an LLC taxed as a partnership. It depends on a lot of factors, including taxable income of the members/shareholders and whether the earnings will be retained in the business or distributed. Particularly where at least two of the owners appear to have no connection to the United States and the 2 Americans are residing outside the U.S., there are questions like how much of the income is U.S. source income.
There are no black-and-white answers.
There isn't any wonder range of which a normal D institution is preferable to a good LLC taxed to be a alliance. This will depend on plenty of aspects, which includes taxable profits with the members/shareholders in addition to if thez profits are going to be kept in the industry or even distributed. Specially exactly where at least a pair of with the masters may actually have zero link with the us along with the 3 Americans tend to be living beyond the U. Ersus., you will find issues like just how much with the profits is U. Ersus. supplier profits.
I would expect that IF you are able to register in the US then that would create a tax nexus to the state where you register and that you'd then be liable for all the taxes applicable in that state.
My understanding is that the USA is one of the many countries where companies registered there are expected to pay tax there.
Apart from this, I would like to suggest you, make your business visible on web. Optimize at best to maintain prominence worldwide. Provide an IT technical support 24*7 to your business formation. There are many IT outsourcing companies available that works at best to make your business grow and grow more with technical advice and assistance. <snip/>
Market Research iѕ vеrу important.Research helps in gеtting consumer reaction tо products thаt аrе аlrеаdу bеing sold bу thе company оr еvеn a product thаt iѕ аt a conceptual stage. Research саn tеll a marketing company whаt flavour оr colour thе appeals mоѕt tо thе consumer. Target audiences саn bе set accurately аnd positioned in thе right market. Research саn prove whеthеr уоur advertisement communicates whаt it wаѕ intended tо be.
LLC is the required document for every new business. You can give the official address where your office located whatever it is in USA or In China..