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davvve 03-14-2003 11:21 AM

Non-US Citizens Forming LLCs in Delaware
 
Hi

I live in Sweden, Europe and I'm currently
offering webhosting services to (mostly) Americans. I'm interested in forming an LLC in Delaware but before I take any further action I'd like to have some stuff clarified. If anyone of you can answer any of these questions, I'd be very glad.

1. Do I have to pay the US federal tax? Or does my company has to have a non-US source income to qualify for this?
2. Do I have to pay any sales taxes?
3. Are there other taxes (I know of the franchise tax) that I will have to pay?

I appreciate your help.

Regards,
David

directfiesta 03-14-2003 12:12 PM

Quote:

Originally posted by davvve
Hi

I live in Sweden, Europe and I'm currently
offering webhosting services to (mostly) Americans. I'm interested in forming an LLC in Delaware but before I take any further action I'd like to have some stuff clarified. If anyone of you can answer any of these questions, I'd be very glad.

1. Do I have to pay the US federal tax? Or does my company has to have a non-US source income to qualify for this?
2. Do I have to pay any sales taxes?
3. Are there other taxes (I know of the franchise tax) that I will have to pay?

I appreciate your help.

Regards,
David

1> You will need a EIN number ( Employment Identification Number ). Taxes will be deducted at source ( Ibill, Epoch, CCbill, etc...)

2> Sales tax is under review NOW in the US. The Gov wants sales taxes to be added " in perspective of fair competition".... At this time, I do not think you need to charge taxes except in the State where your corp is located ( ie: Delaware)

3 > Registree fee ( 125.00 a year). Yearly corp fee: $ 50.00 in Delaware.


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BritishTwinks 03-14-2003 01:42 PM

Be careful. It's a lot more complicated than it seems at first.

jact 03-14-2003 01:48 PM

Quote:

Originally posted by CashAddict
Be careful. It's a lot more complicated than it seems at first.
Care to share any specifics?

rpet 03-14-2003 01:54 PM

Just incorporated in delaware myself cost me a grip:

250.00 Lawyer Fee

450.00 State filing fees, and for company to act as my representive in delaware.

750.00 - I dont know how these people are doing it for 200.00 and stuff unless they have a delaware address.. your company has to have a delaware address. Plus I rather have a real lawyer do it than some joe smoe who does it by filling out some forms on an easy incorporate program for windows.... I want someone who knows how to protect my ass if I get sued and sets up everything right.


One.
Rpet

jact 03-14-2003 02:10 PM

Quote:

Originally posted by rpet
Just incorporated in delaware myself cost me a grip:

250.00 Lawyer Fee

450.00 State filing fees, and for company to act as my representive in delaware.

750.00 - I dont know how these people are doing it for 200.00 and stuff unless they have a delaware address.. your company has to have a delaware address. Plus I rather have a real lawyer do it than some joe smoe who does it by filling out some forms on an easy incorporate program for windows.... I want someone who knows how to protect my ass if I get sued and sets up everything right.


One.
Rpet

I'd tend to agree with you on that one. Got the lawyers contact info handy?

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davvve 03-17-2003 02:53 PM

Quote:

Originally posted by directfiesta


1> You will need a EIN number ( Employment Identification Number ). Taxes will be deducted at source ( Ibill, Epoch, CCbill, etc...)


Will the federal tax be deducted at source (i.e. the gross income of my company)?

How high is the federal tax?

davvve 03-17-2003 02:54 PM

Also, does anyone know of a good Delaware CPA/lawyer who can confirm all this information?

directfiesta 03-17-2003 06:35 PM

Quote:

Originally posted by davvve


Will the federal tax be deducted at source (i.e. the gross income of my company)?

How high is the federal tax?

Yes... dEpending on the State, 20 to 30% ...

For those saying it is expensive, use the guys in my previous above post. It is on line, so you will see exactly what it will cost you BEFORE putlling your credit card out ... and what services you will get.

then, you pay yearly fees, about $ 175.00 yearly

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Bobby Vicious 03-17-2003 08:03 PM

Yes... dEpending on the State, 20 to 30% ...

For those saying it is expensive, use the guys in my previous above post. It is on line, so you will see exactly what it will cost you BEFORE putlling your credit card out ... and what services you will get.

then, you pay yearly fees, about $ 175.00 yearly


Directfiesta do they act as a representive when you incorporate with them and at what additional costs ?

WendyB 03-17-2003 09:28 PM

I recommend your strongly considering NEVADA, to establish your US corporation. As a couple above mentioned, it is not as simple as it seems.

What is your primary objective?

I will make the assumption, you are looking to either:
A. Shield yourself from personal liability.
B. Establish a legitimate and verifiable US business presence.
C. Form a US business which would qualify you (Significant Investment) for a immigrant BUSINESS INVESTOR VISA .
D. Ability to qualify for CC processing, as a US based company.

Delaware is a good state to incorporate in, and yes, it has many positive perks.
Nevada does seem to take corporate friendliness one step further, by allowing corporations to use "contract officers" and corporations are under no legal obligation to reveal the corporation shareholders (actual owners) to the state.
As a foreign national, having "contract officers" who are US citizens can apply/sign off on your official registrations .

Hit me up on ICQ and I will provide you with the law firm in Nevada who has done/does this type of work for me.

directfiesta 03-17-2003 11:19 PM

Quote:

Originally posted by Bobby Vicious
Yes... dEpending on the State, 20 to 30% ...

For those saying it is expensive, use the guys in my previous above post. It is on line, so you will see exactly what it will cost you BEFORE putlling your credit card out ... and what services you will get.

then, you pay yearly fees, about $ 175.00 yearly


Directfiesta do they act as a representive when you incorporate with them and at what additional costs ?

You can go to the extent of having a private phone line answered in your company's name.

But really, why don't you read ON THEIR SITE what they offer ... Bretter than coming from me. I research and compared and used them because I tought they were the best FOR ME.

Maybe they are not for you.

I am not looking anymore at this thread.

GO on their site ....

Cogitator 03-18-2003 09:30 AM

I don't know about LLC's, but S-corporations have citizenship requirements. You might want to check up on that for the LLC. I have a Delaware S-corporation myself.

RyanExpress 03-18-2003 12:08 PM

All I know is Deleware and Nevada are the two best, easiest and least expensive ways to open companies...great tax breaks too!


Great thread...very usefull...good luck...keep on posting all!

rpet 03-24-2003 07:35 AM

Quote:

Originally posted by jact


I'd tend to agree with you on that one. Got the lawyers contact info handy?


I do, my lawyer accepts projects posted on www.freelancebunny.com , go there and post a project for incorporation.... you will get best prices from real qualified incorporation attorneys.

One.
Rpet

rpet 03-24-2003 07:36 AM

Quote:

Originally posted by davvve
Also, does anyone know of a good Delaware CPA/lawyer who can confirm all this information?

With you also, my lawyer accepts projects posted on www.freelancebunny.com , go there and post a project for incorporation.... you will get best prices from real qualified incorporation attorneys.

One.
Rpet

max.yambo 03-24-2003 09:30 AM

We can help you with the LLC in Delaware. It's gonna cost you $500. Hit me on the icq if you need more info.

Why do you need a US offshore company btw?

davvve 03-24-2003 09:58 AM

Quote:

Originally posted by WendyB
I recommend your strongly considering NEVADA, to establish your US corporation. As a couple above mentioned, it is not as simple as it seems.

What is your primary objective?

I will make the assumption, you are looking to either:
A. Shield yourself from personal liability.
B. Establish a legitimate and verifiable US business presence.
C. Form a US business which would qualify you (Significant Investment) for a immigrant BUSINESS INVESTOR VISA .
D. Ability to qualify for CC processing, as a US based company.

Delaware is a good state to incorporate in, and yes, it has many positive perks.
Nevada does seem to take corporate friendliness one step further, by allowing corporations to use "contract officers" and corporations are under no legal obligation to reveal the corporation shareholders (actual owners) to the state.
As a foreign national, having "contract officers" who are US citizens can apply/sign off on your official registrations .

Hit me up on ICQ and I will provide you with the law firm in Nevada who has done/does this type of work for me.

Hi

I'd say B and D are my primary objectives. But I'm still considering this as I've just spoken to the "swedish IRS" and according to them I'll be forced to pay "social fees/taxes" and income tax on top of the US federal tax. The swedish taxes are pretty steep, about 55% (!)... I'm still investigating.

/David

dnsmonster 03-24-2003 11:09 AM

I can assist with incorporating in Delaware and Nevada. I have a number of shelf corporations as well so you could be ready to roll in minutes. Hit me up on ICQ.

freeme 03-24-2003 11:33 AM

Dont Use yambo

they are currently being investigated by the IRS and any accounts set up by them may get caught up in any federal action

:2 cents:

Giorgio_Xo 03-24-2003 01:10 PM

Quote:

Originally posted by davvve

[T]he "swedish IRS" and according to them I'll be forced to pay "social fees/taxes" and income tax on top of the US federal tax. The swedish taxes are pretty steep, about 55%...
/David

And people say Communism is dead. If you include the VAT, you pay 65%-70% on your income. The World Bank reported a few years back that over a third of the Swedish economy was underground. I can understand why. Even Sweden's greatest pornographer Private Media has moved.

I wish you good luck. Nevada and Delaware are your best choices for a US presense. I have owned both DE and NV corporations. Nevada wins out. But, DE is better for foreign nationals.

WendyB 03-24-2003 01:22 PM

Quote:

Originally posted by Giorgio_Xo


I have owned both DE and NV corporations. Nevada wins out. But, DE is better for foreign nationals.


On the surface I would tend to are with you, if the only concern were the initial formation. however when you factor in "the big picture" and Dave's stated needs, Nevada becomes a winner for some of the reasons previously stated.

davvve 03-25-2003 12:19 PM

Quote:

Originally posted by Giorgio_Xo


You woulld still be liable for the Federal foreign witholding tax (30%) or you would need to prove the charges of your Swedish company as a true expense to the IRS. You are required to turn a profit after a certain period of time or your company will be shut down.

I wonder if I'll have to pay income tax and social fees on top of the withholding tax...

TheJimmy 03-25-2003 12:33 PM

Quote:

Originally posted by WendyB
I recommend your strongly considering NEVADA, to establish your US corporation. As a couple above mentioned, it is not as simple as it seems.

What is your primary objective?

I will make the assumption, you are looking to either:
A. Shield yourself from personal liability.
B. Establish a legitimate and verifiable US business presence.
C. Form a US business which would qualify you (Significant Investment) for a immigrant BUSINESS INVESTOR VISA .
D. Ability to qualify for CC processing, as a US based company.

Delaware is a good state to incorporate in, and yes, it has many positive perks.
Nevada does seem to take corporate friendliness one step further, by allowing corporations to use "contract officers" and corporations are under no legal obligation to reveal the corporation shareholders (actual owners) to the state.
As a foreign national, having "contract officers" who are US citizens can apply/sign off on your official registrations .

Hit me up on ICQ and I will provide you with the law firm in Nevada who has done/does this type of work for me.



:thumbsup :thumbsup



I'd have to agree, that that 'nominee / contract officer' setup is rather nice for "anyone" concerned about their privacy...

Although I have serious doubts about any privacy in the US anymore, regardless of state or statute...

Thus I'm looking into IBC this year...

However, if required to maintain a US presence then yes, my vote still goes for NV corps...with a contract officer setup...


If you want another quote from someone that handles this you can reach me on ICQ at 5702550 and I'll give you my dude's phone #.... Very nice guy and easy to talk to, and most importantly knows his shit.

picindex 03-25-2003 12:59 PM

Where can I get more info on this NV corporation set up with contract officers?

picindex 03-25-2003 09:05 PM

Quote:

Originally posted by picindex
Where can I get more info on this NV corporation set up with contract officers?
bump

anyone?

TheJimmy 03-25-2003 09:17 PM

picindex read my reply...I got an ICQ for ya in there....and a phone number upon request...

DaDee 03-26-2003 10:16 AM

Nevada does seem to take corporate friendliness one step further, by allowing corporations to use "contract officers" and corporations are under no legal obligation to reveal the corporation shareholders (actual owners) to the state.
As a foreign national, having "contract officers" who are US citizens can apply/sign off on your official registrations .


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