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

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

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.

I don't think you can make LLC company as of you in Pakistan. The company need to have a physical location in USA

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?

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.

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.

your question reminds me of this post: http://www.warriorforum.com/main-int...ml#post3499645

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).

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.

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

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

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

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:


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