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US citizen trying to partner with an Italian citizen.

Asked by: Irsida  — 8 April, 2012

I am a U.S citizen that wants to open a LTD company with an Italian citizen, we want to know if we can have a company in New York City? What percentage of tax we would have to pay, is there any need to pay taxes in Italy since my partner is Italian and is the Director of the company? If so, How can we avoid paying taxes in Italy? We only need a legal office on papers because business will be done online, how much will it cost us to open an LTD? Can we have a bank account with both of our names for the company?

Answered by: admin  — 8 April, 2012

Irsida,

In the United States, LLC’s members are not required to be U.S. residents, you should have no problem forming your company in New York. You would also be able to use your home or business address in Italy as the business address.

The costs and procedures involved in forming an LLC in New York can vary depending on a few factors, such as state expedite filing options, whether your company would be selling products in New York State or not, as well as the state requirement of newspaper publications. (In New York state, LLC’s are required to publish an article to the public in 2 newspapers for 6 consecutive weeks, followed by filing an Affidavit of Publications with the state upon completion). This publication requirement must be done within 90 days of registration.

Typically speaking for an international service company, the cost to register an LLC in New York State would be about $1000, which would include everything from the state filing fees, federal EIN (tax identification number), publications, one year of Registered Agent service and certified copies of your Articles of Organization with an Apostille. This would also cover the international shipping of all the documents to you in Italy.

We could handle all of these services to have the company formed and registered in compliance with the state. Regarding the tax questions, while we are professional incorporators, we are not professional accountants. That being said, I would recommend consulting with an accountant familiar with international taxation regulations.

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