Open a branch in USA from a european business

[European]

Hi all!

I live in Europe and I am running an online electronic store. I would like to register as a business in the USA too and I heard that I can do it with no need of moving there doing everything online. Can anybody give me a hint of where to start from? I checked in a few websites but got nothing clear.

There's no need to give long or deep explanations, just a small accurate information to know where to consult will be deeply appreciated.

Thanks.

[Business Attorney]

What do you mean by "register as a business in the USA"? Do you mean simply incorporate a business in the U.S.? What is your objective?

It is true that you can form a corporation or LLC whose only owners are non-residents and non-citizens. That is no different that Rupert Murdoch owning News Corporation, or Royal Dutch Shell or Toyota having a wholly-owned U.S. subsidiary.

[vangogh]

Out of curiosity do you need to do this. If your business is entirely online does it really matter where your registered. It doesn't change who you can reach and sell to.

Is there a tax or similar reason for wanting to do this?

[European]

What do you mean by "register as a business in the USA"? Do you mean simply incorporate a business in the U.S.? What is your objective?

It is true that you can form a corporation or LLC whose only owners are non-residents and non-citizens. That is no different that Rupert Murdoch owning News Corporation, or Royal Dutch Shell or Toyota having a wholly-owned U.S. subsidiary.


Out of curiosity do you need to do this. If your business is entirely online does it really matter where your registered. It doesn't change who you can reach and sell to.

Is there a tax or similar reason for wanting to do this?

Thanks for the answer. I'll explain further to clear up my situation. I got a few suppliers in the USA and making deals with them have banking fees. So one of the reasons is to save this banking fees opening an american bank account (for which I believe I will have to travel there) and make the payments through that account. In the other hand, this would help find more suppliers as most electronics distributors do not sell overseas.

With all this, I have no idea of how to register as a business, if I have to pay something monthly/yearly or not (in Europe we pay a fix rate of 300 USD monthly for the right to have a business), if I have to pay any kind of taxes two times (in Europe and in the USA) or anything else.

Who knows, maybe I end up moving to the land of opportunities.

[vangogh]

That makes sense. I'm going to let David answer since he'll know much more than I do about this. I could point you to places to look if you were living here, but I think they require you to be living here. I'm not sure how this works internationally.

[billbenson]

Why not call one of the international banks like Citibank at a branch in the US and see if you can open an account. Citibank does have offices around the world, but they operate like franchises. You will still probably need to wire yourself your money.

[European]

Why not call one of the international banks like Citibank at a branch in the US and see if you can open an account. Citibank does have offices around the world, but they operate like franchises. You will still probably need to wire yourself your money.

That could work out for my banking solution but I still want to register as a Business in USA to get more suppliers.

[Business Attorney]

Once you have set up your business entity (corporation or LLC), the annual cost of a maintaining the business entity has three basic elements (apart from all your operations, of course):
Annual filing fees and/or franchise taxes. The minimum fees vary considerably from state to state. Most are between $50 and $150 a year. California is at the high end of the range $800 minimum franchise tax for an LLC).
Registered agent fee. You must have a registered agent with a physical presence in the state. If you were there, you could act as your entity's registered agent, but since you are not, you have to appoint one. Fees generally range from $150 to $350 a year. you may even be able to find one a little cheaper.
Cost of filing all federal, state and local tax returns.

As for the taxes themselves, you need someone to look at what you are doing in the U.S. and how the tax treaty between the U.S. and your own country treat that type of income. There are no "general" rules - you need to find the specific rules that apply to your own facts.

[European]

Once you have set up your business entity (corporation or LLC), the annual cost of a maintaining the business entity has three basic elements (apart from all your operations, of course):
Annual filing fees and/or franchise taxes. The minimum fees vary considerably from state to state. Most are between $50 and $150 a year. California is at the high end of the range $800 minimum franchise tax for an LLC).
Registered agent fee. You must have a registered agent with a physical presence in the state. If you were there, you could act as your entity's registered agent, but since you are not, you have to appoint one. Fees generally range from $150 to $350 a year. you may even be able to find one a little cheaper.
Cost of filing all federal, state and local tax returns.

As for the taxes themselves, you need someone to look at what you are doing in the U.S. and how the tax treaty between the U.S. and your own country treat that type of income. There are no "general" rules - you need to find the specific rules that apply to your own facts.

Your answer was really helpful. Thank you. Still I must ask again, where should I register the business or find a registered agent fee? at irs.gov?