Foreign company selling in US

11 replies
Hi,

I'm currently working on a directory site that will sell featured space. The market is USA.

I'm wondering if I could use a foreign company to sell this. In this case, I guess there would be no tax to pay in US, but instead in the company country. I m not in the USA myself neither i m american.

I know I need legal advice andI ll get it, but I d like to get some info 1st...

Thanks.
#company #foreign #selling
  • Profile picture of the author kebertt
    I don't see why not, although I think you're going to have difficulty selling to such a generic market (entire USA). Maybe you should make some niche directories, or target specific towns instead. It will make business owners more inclined to purchase.
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  • Profile picture of the author coffeecashnow
    Thanks kebertt,

    Yes, directories will be more local, I just meant that sale was inside USA.

    Don t know if you re american, but if you are, how would you feel about doing business with a hong kong company?

    Well, I m not even sure they ll know it! Why would we need to say we're an HK company on the phone...?

    Thanks,
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    • Profile picture of the author MaxwellB
      Originally Posted by coffeecashnow View Post

      Thanks kebertt,

      Yes, directories will be more local, I just meant that sale was inside USA.

      Don t know if you re american, but if you are, how would you feel about doing business with a hong kong company?

      Well, I m not even sure they ll know it! Why would we need to say we're an HK company on the phone...?

      Thanks,
      No you wouldn't. Unless they asked where your located. If you don't have a location or mailing address in the US then you'd have to say Hong Kong.

      You can set up a virtual office with a company like Executive suites, virtual offices & conference rooms - Regus USA to get around that and be able to say your in (Philadelphia, New York, wherever).
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  • Profile picture of the author coffeecashnow
    Yes of course, if they ask...

    So the virtual office would be rented by HK company, just to say we're in US, even though the company isn t there. The payment would still be made to HK bank account.

    Wouldn t it show on statements?

    Thanks!
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    • Profile picture of the author MaxwellB
      Originally Posted by coffeecashnow View Post

      Yes of course, if they ask...

      So the virtual office would be rented by HK company, just to say we're in US, even though the company isn t there. The payment would still be made to HK bank account.

      Wouldn t it show on statements?

      Thanks!
      To answer your first question:

      So the virtual office would be rented by HK company, just to say we're in US, even though the company isn t there.

      Answer: yes if your renting an office in the U.S, even a virtual office with a mailing address you can say your in the U.S

      What are you using to process payments? Credit card? The only thing that would show on their statements is your company name and maybe your credit card processors name. It wouldn't say anything about where it came from.

      And by the time your processing payment it doesn't matter right :p

      But really it doesn't...if they come back to you and say where are you located after they pay you and you say Hong Kong....they can't cancel the sale for that reason...you havn't done anything wrong or lied.

      That will never happen though.
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  • Profile picture of the author kebertt
    +1 for the virtual office - they're very affordable. You could even go as far as purchasing multiple VO's and marketing the fact that you're local.
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  • Profile picture of the author coffeecashnow
    Yes that s a smart idea.

    However I m still wondering what s my best option. Would someone know what kind of tax I d have to pay if I set up a Delaware company and sell in other states?

    Otherwise what s the usual best state to incorporate to pay less taxes? Obviously HK is 0% but set up fee is high!

    Thanks for your ideas!
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    • Profile picture of the author MaxwellB
      Originally Posted by coffeecashnow View Post

      Yes that s a smart idea.

      However I m still wondering what s my best option. Would someone know what kind of tax I d have to pay if I set up a Delaware company and sell in other states?

      Otherwise what s the usual best state to incorporate to pay less taxes? Obviously HK is 0% but set up fee is high!

      Thanks for your ideas!
      We're registered in Nevada because there is no state business income tax. It's inexpensive...we used legalzoom because I'm lazy haha.

      As a non-resident/citizen you can register a business but you will be liable for any federal income taxes and state income taxes (0 in the case of nevada) So in the long run you will pay a lot of money as opposed to the 5k for HK.

      It sounds like your making excuses to not get started with whatever venture it is. Your not going to run into any problems with a virtual office...you can answer "we're located in Philadelphia" done that's it...people don't do much more research than ask "where are you guys at" and when they ask during a sale it's usually just an element of the conversation not necessarily an "objection" or "suspicion" .

      So pick a large major city, get a virtual office...start your business in hong kong and start generating business. Your sweating the small stuff and making excuses and what if's and it's preventing you from taking action.
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  • Profile picture of the author kebertt
    What kind of fees do you face in HK? It may be worth your investment to incorporate there.
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  • Profile picture of the author coffeecashnow
    5k + travel to sign docs for bank account. That s with someone I really trust. May find cheaper options but then I don t know them...
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  • Profile picture of the author coffeecashnow
    I'll disagree with you Maxwell, but that's ok.

    I'm in discussion with several call centers now to find the best fit. I'm having someone writing my script and that should be done today. I think I m making things move, not just thinking!

    Now as far as the set up is concerned, I want to make sure I do it the right way. If I could set up a Nevada company and sell to customers in NY and pay no tax, then why would I bother with HK? But from what I understand if customers are in NY then I need anotehr license and it makes everything even more difficult. Again, I m not sure, I m not american and the fact that each state is different makes it harder to understand it. It s not the same wher I live, same rules all over the country...

    I have another option in caribbean, which would cost less than HK. But for example Paypal is not accepted there. So it makes me wonder. Even though if we take cards on the phone I don t need paypal, so it should be ok. I ll have to check how to take check on the phone as well without a US bank account.

    I m trying to simply anticipate what may cause problems. Because it s not the kind of things you can easily change...

    By the way, should I register the domain name under the company name or it doesn t matter?

    I m moving man, just made some mistakes in the past and trying not to make them again.

    Regards
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