A couple of weeks back I explained how Delaware was a good state to register a company. Now, what I’ve learned is that it depends on what kind of business you are doing. What kind of industry you are in. In some cases you will have to register a company in each state you are operating in.
The reason why has to do with protection in the case you are being sued in another state then the state you registered it in because your Delaware company, your Florida company…wherever you have it is a domestic company in that particular state. It is a foreign company in every other state or country. This basically means that you don’t really have the same rights as a LLC or corp in a "foreign" state: a state it is not registered as a company in.
“If you plan to staff offices in a state other than Delaware, with employees who conduct business directly with the public, it may be wise to register in this state. Registering in additional states is generally not necessary if you are a consultant; a one- or two-person or home-based business; or sell through independent distributors, manufacturer's representatives, wholesalers, retailers, or through mail order or the Internet” (The Delaware company [online] 30.08.10).
A friend of mine told me it might be possible to put up a company in Delaware and in the state you are operating in, but doing everything through the company in Delaware, getting all the benefits Delaware as a state has to offer. I will find out how that works and come back with more info on that.
In the meantime I’m working on the business plan, hereunder the research, which is probably the most important thing when opening a new business. I started doing research around late January, but I guess research is something constantly ongoing. In this case it is for the business plan, but I think research is something that needs to be done frequently to be able to handle whatever situation occurs in the marketplace. BE PREPARED.
I’ve also started getting the practical stuff together such as international sim card for clients to reach the company on, website design, business cards and so on. It’s like a puzzle.
It’s late and I should probably go to bed now, but for some reason I can’t go. Its like I have too much energy inside to go to bed, although I’m dead tired. If I go now I will only lay awake in bed thinking of what the next step for my business would be, however I will try and sleep. It’s important to have a degree of structure, so I try to get up around 7am everyday.
I will get back as soon as I have more info on how to run companies from different states.
Good night!
Hi yass,
ReplyDeleteGood post for those who are planning to establish their businesses in US.
Do you know any regulations regarding Business Visa in US?
I have heard that individual can invest some money and get Business Visa.. ? .. ?
Any knowledge about it?
How did you get your permission to make business there?
Cheerz
Tom
Hi Thomas!
ReplyDeleteI do know about some of the regulations, and I will actually give you some insight in it next week :)
In most states you actually don't have to be a resident nor hold a green card or be citizen to register a company, but to be there physically and work you need a work visa. Kinda weird, but thats how it works. So lets say all payments from your clients goes through pay-pal or visa solution on the Internet you could still do business in the US without actually having the Visa, because the Internet is international. Thats were the interesting loophole is!
Thats sounds interesting.
ReplyDeleteDo you actually know if any companies operate that way?
How about when you need to pay taxes ect in the end of the year, can they track you?
If its that easy many people would go there and leave country for a weel every half a year... Im sure you know better that me :)
Can you open a business account with US bank if you are not a resident?
Are you going to operate that way?
Thomas!
ReplyDeleteYes, there are companies who avoids this by;
A) Get in a partnership with another person with the experience required
B) Register a company in 3 of the other states where the license is not required and then outsource the employment; hire people in other states with the license to do the job.
C) Operate from UK, and outsource to employment agency in the US
Im not sure what you mean with the tax question. You pay tax registered on the company you actually operate through. If I have a company in the US I pay taxes to the US. If I operate from a UK company, I pay taxes to the UK.
Yes, you can have a business account with a US bank if you are not resident or have work visa. At the end of this blog article you can find step by step how you register a bank account for your business in the US:
http://yassminejohansen.blogspot.com/2010/08/smart-us-state-to-corporate-your.html
I will be operating both from the UK and the US. Legally :)
Hope that helped!
Thats great!
ReplyDeleteI thought there are tuffer rules, but as you said there is always the way around!
Would be great to hear some a case study about a company that operates that way, what dificulties it faces ext... maybe you can analyse few companies in your future blogposts.
Thanks