What is a LLC company and how can it be helpful?

23 replies
Hi,

Please let me know about LLC company and how to open it in US to open a verified paypal account while living in Pakistan because paypal is banned in Pakistan. I need your precious guidance. Thanks
#company #helpful #llc
  • Profile picture of the author Dol Amroth
    Banned
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  • Profile picture of the author Caleb Spilchen
    A Limited Liability Corporation. How can it help you? Exactly what the name says. Take away personal liability for the actions of your business.

    Caleb
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    Canadian Expat Living in Medellin, Colombia

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    • Profile picture of the author DogScout
      Originally Posted by Caleb Spilchen View Post

      A Limited Liability Corporation. How can it help you? Exactly what the name says. Take away personal liability for the actions of your business.

      Caleb
      In 49 states, a single owned LLC does NOT enjoy personal protection. Nevada is the only state to not over-rule that part of an LLC's bylaws. If you need safety from personal liability, an LLC must have at least 2 unrelated officers/owners, be in Nevada or get a Blind Trust. You can open a Blind Trust in any country, (that you have a physical address for), and the ownership of a Blind Trust is VERY difficult to get as long as it is opened in a country other than your own. (Nevis & St. Kitts are favorites of the 'bad guys' these days).:rolleyes:
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      • Profile picture of the author kindsvater
        Originally Posted by DogScout View Post

        In 49 states, a single owned LLC does NOT enjoy personal protection. Nevada is the only state to not over-rule that part of an LLC's bylaws.
        I disagree. Who cares what is in bylaws? If you are personally involved in an activity which causes a legal issue, it doesn't matter if you have a LLC or corporation.

        What happens is you personally AND the LLC / corp get sued. In all 50 states.

        Seriously? The FTC comes knocking and says Frank, we've got a problem with your pyramid scheme.

        And your response is - pound sand because I created some bylaws for my Nevada LLC that says I'm personally protected???

        Good luck with that one.

        On the other hand, if you are not personally involved in something that causes your business to be sued, then yes, you have some protection. But Nevada is hardly unique in that. If your XBox doesn't work you don't get to sue Bill Gates.

        .
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  • Profile picture of the author goingup
    This is a seperate entity than you, from a legal standpoint. Separate address, also, or it can be and should be. You can use a virtual office for your business address, with addresses in a variety of countries.
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    Only dead fish go with the flow.

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    • Profile picture of the author Paul Fernandez
      Jahangir,

      Since you are in a foreign country, I would suggest creating a corporation (Inc.), not an LLC. Once you have the corporation in place, you can set up LLC's for different businesses under your corporation.

      I, and most attorneys, will suggest that you set up a Delaware corporation.

      If you're really serious about protecting yourself and setting everything up correctly, contact hollandhart.com and have them set everything up for you. This is the lawfirm that Clickbank uses and they know their stuff!
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  • Profile picture of the author onegoodman
    I don't think you can make LLC company as of you in Pakistan. The company need to have a physical location in USA
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  • Profile picture of the author Arock
    Check out the LLC entities in New Mexico. Some can be formed anonymously I believe. I don't actually know all the requirements. You might be able to set one up there with no name.

    Also, if you don't live in the United States, you probably don't have too much liability exposure here for civil matters. Depending on what you are doing...I highly doubt extradition. Why do you need an LLC?
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  • Profile picture of the author drmfitz
    You already have a correct definition of a LLC. It is used as what is called a "pass through" account activities as a method of both tax reduction and asset protection. You must consult your tax experts where you live to find out how you interface with this entity. You do not need to be present to set one up, you can even do it yourself.

    If you do not have a SS# to provide, a TIN (tax identification number) will be required. again, you will want to get very specific information to find out the requirements to run that entity-annual meeetings, stock issue, etc.
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  • Profile picture of the author Robert Mangan
    Jahangir,

    I hope this helps...

    I live in Australia but I formed a Delaware LLC in which I could run my U.S. ecommerce business. You can find a good incoporator in Delaware (PM me if you want to know who I use). The incorporator can obtain an EIN number (that you sometimes need if you want to deal) with other U.S. companies. The incorporator can also get you a mailing address.

    Your problem is getting the PayPal account. I got a U.S. PayPal account for my U.S. company but you do need to get it verified. When I applied I got the account but then needed to verify. There were 3 conditions: US bank, bank card and SSN (US SSN). You have to satisfy 2 of these to be verified.

    So, you're going to need a U.S. bank account for the Delaware LLC. Once you get the bank account the bank will also give you a Visa debit card. You now will have 2 out of the 3 things and you can get your PayPal account verified.

    I opened up a Website Payments Standard account with PayPal.

    Before I opened the account I called PayPal to make sure that I could access it from Australia (as it was being opened for a U.S. bisiness with U.S. mail address) and was told tis was fine.

    Here's a number to call PayPal, 1-888-818-3933. It's toll-free so you can call for free using your Skype account from Pakistan.

    Explain to them that you want to form a US LLC (company) and that you want to operated a U.S. PayPal account and if this is ok. I did this and was told it was fine.

    By making this free phone call you can ask the questions and get some real answers to your questions.

    I've been using my U.S. PayPal account for over a year now and have had no issues.

    I've written an ebook about how I got my U.S. company, bank, merchant and PayPal account and how I operate an ecommerece store retailing to US customers, while doing it all from my home in Australia. I will be releasing it for sale in about a month's time.

    Anyhow, make that call to PayPal and good luck with getting your PayPal account.
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    • Profile picture of the author Alex Barboza
      Feel free to send me a private message when you launch your product on how to open a LLC and bank account in the US.

      Originally Posted by Robert Mangan View Post

      Jahangir,

      I hope this helps...

      I live in Australia but I formed a Delaware LLC in which I could run my U.S. ecommerce business. You can find a good incoporator in Delaware (PM me if you want to know who I use). The incorporator can obtain an EIN number (that you sometimes need if you want to deal) with other U.S. companies. The incorporator can also get you a mailing address.

      Your problem is getting the PayPal account. I got a U.S. PayPal account for my U.S. company but you do need to get it verified. When I applied I got the account but then needed to verify. There were 3 conditions: US bank, bank card and SSN (US SSN). You have to satisfy 2 of these to be verified.

      So, you're going to need a U.S. bank account for the Delaware LLC. Once you get the bank account the bank will also give you a Visa debit card. You now will have 2 out of the 3 things and you can get your PayPal account verified.

      I opened up a Website Payments Standard account with PayPal.

      Before I opened the account I called PayPal to make sure that I could access it from Australia (as it was being opened for a U.S. bisiness with U.S. mail address) and was told tis was fine.

      Here's a number to call PayPal, 1-888-818-3933. It's toll-free so you can call for free using your Skype account from Pakistan.

      Explain to them that you want to form a US LLC (company) and that you want to operated a U.S. PayPal account and if this is ok. I did this and was told it was fine.

      By making this free phone call you can ask the questions and get some real answers to your questions.

      I've been using my U.S. PayPal account for over a year now and have had no issues.

      I've written an ebook about how I got my U.S. company, bank, merchant and PayPal account and how I operate an ecommerece store retailing to US customers, while doing it all from my home in Australia. I will be releasing it for sale in about a month's time.

      Anyhow, make that call to PayPal and good luck with getting your PayPal account.
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  • Profile picture of the author Brian John
    your question reminds me of this post: http://www.warriorforum.com/main-int...ml#post3499645
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  • Profile picture of the author Robert Mangan
    Yep similar. However, while both an LLC and S-Corp are allowed flow-through tax treatment i.e. tax is not liable on company profits sharehaolders are taxed when when they avail themselves of profits - prevents double-taxation, which is good... non-U.S. residents can't be shareholders of S-corporations. So the LLC is the way to go for Jahangir. Also, an LLC is permitted to operate with a single member (i.e. a one-person company).
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  • Profile picture of the author Alex Barboza
    Is it necessary to open a LLC in the US to use Paypal? Incorporating in other Paypal friendly countries can be easier. Singapur and Belize, for example are other options to consider.
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  • Profile picture of the author Robert Mangan
    Alex,

    I guess incorporating in another country and getting a PayPal linked to your personal or business account there is an option. However, if you're serious about doing business in the U.S., i.e. buying services/products from U.S. businesses you really will need a U.S. based company. Many companies in the U.S. are going to ask for things such as reseller's licence (or EIN) and some are going to want to know where and whom you bank with before they'll consider you as a vendor of their products.

    On the other hand, if you're selling ebooks or a service then, yes, you could form a company in your own country and get a business bank account there and get PayPal.

    The thing to remember is this: if you want to do to buiness with U.S. suppliers then having a U.S. based businessis going to make it much easier for you. Thinking long-term: when you begin selling their products you'll probably want to get a line of credit in the years to come and getting one will be so much easier if your company is U.S. based and has gainedsome credit rating.

    Also, taking credit card payments is just easier and cheaper if you get orders from the U.S.

    Anyhow, I could go on and on but whatever one decides it should be based on where and with whom you'll be primarily dealing with.

    For my business, I deal with U.S. companies and sell to U.S. consumers. Trying to do that with a business based here in Australia (where I live) would have been harder if not impossible for me.

    Robert
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  • Profile picture of the author successfulwarrior
    Then this is probably not helpful for those of us not in the USA but no knowledge it's lost because one day you will be in the USA.lol
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  • Profile picture of the author foreignnative
    Yeah I saw Pat Flynn's article on this too, great stuff. I check out the article on how not becoming an LLC can cost you lots of money. I know there are several reasons for becoming an LLC, does anyone know of a place where I can see a bullet point layout of all of the reasons. Thanks
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  • Profile picture of the author GMD
    Banned
    Seems like a lot of work just to open a PayPal account in the U.S. when you're residing in a country that's been, unfortunately, blacklisted by PayPal.

    Obviously persons living in PayPal supported countries may open U.S. based PayPal accounts with the proper paperwork and infrastructure in place. That doesn't apply for persons residing in PayPal banned countries.

    In this case you'll have a person residing in Pakistan, controlling a PayPal account from a banned country all the while having filed fraudulent paperwork as the real intent is to open a PayPal account and not actually conduct business.

    Even if this guy shells over the several thousands of dollars most middlemen company will charge for this service, on top of the yearly fee to be this guy's resident agent in the state of corporation, PayPal will nuke that account as soon as it gets any whiff that it's being operated/controlled by anybody residing in a country on their list of no-no countries.

    Rather than the OP waste all this money on an unsure thing, it's best to exit stage left while he still has a chance. There must be other safer alternatives for him?

    This is my precious guidance! :rolleyes:


    PayPal Terms of Service / User Agreement:

    Paragraph 2

    2.1 Eligibility. To be eligible to use the PayPal Services, you must be at least 18 years old and a resident of the United States or one of the countries listed on the PayPal WorldWide page.

    Paragraph 9

    9.1 Restricted Activities. In connection with your use of our website, your Account, the PayPal Services, or in the course of your interactions with PayPal, other Users, or third parties, you will not:

    p. Access the PayPal Services from a country that is not included on PayPal's permitted countries list;
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