Entries Tagged 'LLC' ↓

1. Blowing Your One Chance at Setting up a U.S. Merchant Account! Most banks or merchant account providers will
NOT open up a U.S. Merchant Account for a U.S. company that is 100% foreign owned. Why? No recourse. Some
banks may set it up but they require a large hold-back of your sales to keep as a safety net. If you attempt to set up
your merchant account and fail, it will show up as a bad mark in the merchant account data base. When you go to
get it done right, you may have blown your only chance because the next merchant account company will know you
already failed to set up a merchant account.
2. Inconsistency in Your U.S. Company Set Up! This happens when someone will set up a corporation in one state,
a bank account in another state and a mail forwarding program only with a virtual U.S. phone number. You may get
your bank account set up, but this will back fi re when it comes to developing trust in the U.S. market. Only having a
U.S. P.O. Box as your U.S. address sends a strong message to the U.S. consumer that you are a fl ake or you are
attempting to hide something. Trust is the name of the game…don’t get cheap to save a few dollars and lose out on
sales and joint ventures because of it!
3. Costly Tax Mistakes with the U.S. Internal Revenue Service (IRS). There are many pitfalls and hidden land mines
that can cause you a lot of damage with your U.S. company if you do not have all the facts up front. You must know
which entity is best and the U.S. tax ramifi cations if the entity is taxed as a C corporation vs. an LLC. Both have very
different U.S. tax structures. You must have an ITIN number and an EIN number. You must fi le the proper tax returns
the following year. Setting up your company in the wrong state may cause you to pay an extra 5-8% of unnecessary
state taxes. An LLC can be taxed in different methods; one will result in a fl at 30% withholding tax on all profi ts before
they fl ow back to you in your home country. If you are planning to expense out profi ts to your home country, you must be familiar with IRS form 5472 with the IRS! Having the IRS auditing your U.S. company can be a fast way to go out of business with penalties and interest!
CAUTION: Online companies may make this appear to be simple. Meaning, very few steps for a low price. You do
not want surprises, especially when you are not based in the United States. NCP’s goal is to remove surprises and
provide the support you need!

If you or any of your business contacts are internationally-based and are looking to better understand the U.S. immigration and business VISA rules for coming into the United States and how your new U.S. company will come into play, we have great news. As a client of NCP’s you will gain full access to a 45-minute recorded webinar where a top immigration attorney in the United States will walk you through the following key strategies:
• What are the factors that influence steps necessary to secure admission into the United States?
• Discover the basis steps when a foreigner comes to the U.S. to visit
• What are the rules when a foreigner with a foreign company comes to the U.S.? You will learn what activities are ok and which ones are not!
• Are you a foreigner with a U.S. company? This will be a MUST for you if you plan to travel into the United States. When will you need a word-based VISA?
• What are the business VISA options? Which ones can you apply for the fastest?
• What happens if you come to the U.S. and you are in violation of the proper VISA’s?
• Are you a foreigner and having some type of work VISA (HI-B) with a U.S. company and you are considering starting your own business? What are your options?
• How and when do you get started with the process?

Establishing a Strong Foundation for Your U.S. Company with NCP! Our CEO, Scott Letourneau, has spoken in the UK, Australia and New Zealand on the subject of establishing a U.S. company, aka a “U.S. Cash Machine” and has covered all the steps and processes with his staff to make this a turnkey experience for you.

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No Corporate Income Tax
• No Taxes on Corporate Shares
• No Franchise Tax
• No Personal Income Tax
• Nominal Annual Fees
• Nevada corporations may purchase, hold, sell or transfer shares of its own stock.
• Nevada corporations may issue stock for capital, services, personal property, or real estate, including leases and options. The directors may determine the value of any of these transactions, and their decision is fi nal.
• No Franchise Tax on Income
• No Inheritance or Gift Tax
• No Unitary Tax
• No Estate Tax
• Competitive Sales and Property Tax Rates
• Minimal Employer Payroll Tax – 0.7% of gross wages with deductions for employer paid health insurance Nevada’s
Business Court
• Developed on the Delaware model, the Business Court in Nevada minimizes the time, cost and risks of commercial
litigation by:
o Early, comprehensive case management
o Active judicial participation in settlement
o Priority for hearing settings to avoid business disruption
o Predictability of legal decisions in commercial matters

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Now that you have determined there are several compelling and fi nancial benefi ts to form a U.S. company, the next
question becomes, which state is best? As you know, there are 50 states to choose from (NCP does form corporations
and LLC’s in all 50 states) and the two most popular choices for an international business professional looking to form a
U.S. company are Delaware and Nevada.
The main rights in Delaware law benefi t shareholders of public corporations. This attracts large public companies that
trade on various exchanges across the country to provide the best protection to their shareholders. Delaware’s corporate
law, with regard to corporate takeovers, is the strongest in the U.S. However, for everyone else, including an international entrepreneur looking to form a U.S company, the following chart illustrates several benefi ts of Nevada over Delaware: Nevada vs. Delaware It’s No Secret: Nevada Beats Delaware Nevada’s liberal incorporation laws offer more protection and less disclosure than the once-popular Delaware, making it the most advantageous state in which to incorporate. Here are some of the specifi c differences: In short, Delaware’s state corporate tax amounts to 8.7%. Nevada has NO STATE Corporate or LLC taxes. That means with a Nevada Corporation or LLC the entity is fi ling a federal tax return only and is subject to Federal taxes as they apply.
Delaware also requires disclosure of the principal place of doing business outside the state, requires the corporation to
report the actual number and value of its stock, and freely exchanges information with the IRS.
In addition, Nevada’s corporate legislature has recently surpassed Delaware’s in its efforts to ensure that the rights of
small corporations are protected. Delaware, for example, adopted a statute that allows the corporation to limit the liability of a director for monetary damages. However, it has far to go to be compared to similar statutes adopted by Nevada. For example, the following are acts for which offi cers and directors would be protected under Nevada law, but exposed under Delaware Statutes:
• Acts or omissions not in good faith.
• Acts by offi cers are not exempt from monetary damages under Delaware law.
• Breach of a director’s duty of loyalty.
• Transactions involving undisclosed personal benefi t to the offi cer or director.
• Acts or omissions that occurred prior to the date that the statute, which provides for indemnification of directors, was passed and approved.
Delaware requires that an officer must reasonably believe that he/she is performing his/her duties in a manner that is in the best interests of the corporation. This is not a requirement in Nevada.
* To verify this information, call the state corporate tax department of Delaware at 1-302-577-3300

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