Question: Hey Ralph, I am an Australian Resident, but am working with a few folk in the USA and we are in the process of setting up an internet based business. We believe the business has quite large growth potential and have outside investors supporting the business. One of those investors is a US Citizen and will act as a US resident director. I was a VP at (omit)and (omit) and am quite used to taking small businesses and making them large. Important thing is that we have a good corporate structure in the USA for ongoing growth (different types of shares plus flexibility in corporation setup) and to keep the costs down at this stage of the game. Are you in this business? If so what are the fee structures/options available?
Answer: This is a great question. When it comes to corporation setup we will leave that to the legal guys. I will recommend someone to you in a private e-mail. Due to the complex nature of what you are looking to do, I would recommend you invest some time and effort in the set-up of the legal entity. It may be somewhat complex since you will have what appears to be both US and foreign investors. Once you have established the entity we could certainly work with you in developing the appropriate tax structure for your entity. We can work with your attorney as well in consultation as to the tax ramifications of the entity structure, but we will leave the legal side of this to the attorney.
For assistance with tax implications of your business entity, contact Ralph V. Estep, Jr., of Saggio Accounting+PLUS at 302-659-6560 or visit our website at www.saggioaccounting.com.