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HK company VS USA company

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  1. #11

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    Perhaps a tax attorney can expedite the process for a small nominal fee.
    Delaware outfits, many of them understand the requirements of a Amazon "FBA" business and have packaged services.

  2. #12

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    Quote Originally Posted by biffski:
    Yes, if one is a foreigner one must have a TIN in advance of the call. I did not fit into that category as a US citizen. I understand there will be a delay as a non citizen. Perhaps a tax attorney can expedite the process for a small nominal fee.
    The OP is a non US citizen. So I was trying to answer in his shoes. I know as a US citizen (or a person with a Tax ID number) you can open a company and get an EIN in minutes. You can even get an EIN before opening an LLC.
    biffski likes this.

  3. #13

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    I am not too sure why you would like to add a US company into your structure especially their Tax system could be far more complicated than many other countries, but what drives you to setup a US company?


  4. #14

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    Quote Originally Posted by Alex Lo:
    I am not too sure why you would like to add a US company into your structure especially their Tax system could be far more complicated than many other countries, but what drives you to setup a US company?
    Usually people set up US companies to have a US bank account and to assist in payments. Some Vendors will require a Tax ID number to do business with and receive money.

    As a foreigner setting up a business in the US with no US status or presence can claim exemption to all US taxes. There are some requirements on this but selling via Amazon to the US with a foreign owned US entity would be tax free (in the US).

  5. #15

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    regarding the US EIN: we already got one as a HK company. It was difficult mostly because the process had to be done entirely by phone and the operators are not used to "foreign" accent and words, therefore during the first application there were a few typos and getting them to change the mistakes was a pain. Besides this however, entirely doable.

    As for the reason to establish a US company, it is mainly because we want to sell on american market, and having a local company makes a lot of sense.

    Going back to my original post, my big question is what type of structure is more convenient (of course from a tax perspective), whether having two unrelated companies under the same owner or having the hk entity being the controller of the us entity.


  6. #16

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    The US llc should be disregarded, that will mean that is doesn't exist for taxes and you'll pay the taxes you would anyway though the hk company. Any foreigner person can be taxable in the US if you are engaged i a US trade or business and the definitions of this is not clear. Trading through a US llc doesn't affect this.

    In some states it can be beneficial to be a sole proprietor member of the US llc compared to a corporate member, so if possible you can consider to own the US llc personally and not through the HK Ltd.
    Hk doesn't have a tax treaty with USA, so the threshold of being deemed to be engaged in a US business is lower.

    You can hire an agent to get a ein for you, that's no problem at all.