Canadian Setting Up a USA LLC

Discussion in 'Legal Issues' started by cantsanga, Jul 16, 2012.

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  1. #1
    Hello,

    I'm a Canadian that runs an eCommerce business that focuses mostly on the United States.

    I'd like to know how a foreigner can set up an LLC. I know you can but how do you go about doing it.

    My reasons for doing this is because my customers are mostly Americans, and having a US LLC brings advantages that i think are worth the hassles.

    Here are my questions:

    1) Can I do it on LegalZoom.com
    2) What state should I setup my LLC that would allow me to pay the least taxes, my ecommerce business grosses less than 100K/year so its not alot, profit is even less.

    3) I have family that lives in Pennsylvania, that are open to co-owning the business, in return for a management fee, but no actual involvement. so my question is are there any advantages to having a US Citizen co-owning the business, versus me just doing it alone.

    4) do i actually have to visit the US or the state i wish to set up business to register the LLC (I don't mind for Michigan or PA)

    5) what are the cons/constraints/liabilities, etc of a US LLC.

    All advice would be greatly appreciated.
     
    cantsanga, Jul 16, 2012 IP
  2. Business Attorney

    Business Attorney Active Member

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    #2
    1) You can use LegalZoom but you can also set it up online directly with most states. See http://www.limitedliabilitycompanycenter.com/states.html for links to the various states.
    2) That depends, but Nevada is a frequent choice since there are no taxes on individuals
    3) N0
    4) No, but if you want a US bank account for the LLC, many banks require that you appear in person to open the bank account.
    5) There are a few disadvantages, though they are generally outweighed by the advantages in most situations. See: http://www.limitedliabilitycompanycenter.com/llc_disadvantages.html

    Hope that helps.
     
    Business Attorney, Jul 16, 2012 IP
  3. cantsanga

    cantsanga Peon

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    #3
    thanks guys. i love this forum. the bank account issue was actually resolved for quite sometime, i opened one a while ago when i visited the US

    what do you mean no taxes on individuals for Nevada? wouldn't my business still be taxed? or i pay myself and report zero profits?

    i also read that the State of Deleware, you only pay taxes on business that happened in Deleware, otherwise you pay no taxes, is that correct?
     
    cantsanga, Jul 16, 2012 IP