Foreign Internet Based company wants to do business in USA
Asked by: Nick - 5 July, 2011
Hi,
Thanks for taking your time to look at my query. I've started a small online business in India and I was wondering if my doubts can be cleared:
1. Do I need to register a company in USA if I want to provide my services there. (I do not need any office space or physical location in USA)
2. If yes, what type of company should I look into.
3. If no, how can I accept online payments for my services and how will I pay taxes in USA.
Thanks in advance.
Hi,
Thanks for taking your time to look at my query. I've started a small online business in India and I was wondering if my doubts can be cleared:
1. Do I need to register a company in USA if I want to provide my services there. (I do not need any office space or physical location in USA)
2. If yes, what type of company should I look into.
3. If no, how can I accept online payments for my services and how will I pay taxes in USA.
Thanks in advance.
Answered by: Monique Blanchard - 14 July, 2011
Nick,
In your case a decision on whether to register a company in the US or not should be based primarily on convenience. Since you can sell your products online to any person in the world by having them pay you using one of the international payment options (like credit cards, PayPal etc) it could suffice to have your company registered in India and paying all the taxes there. You might need to obtain an EIN if you use PayPal.
You might want to consider opening a company in the US if and when you intend to hire US contractors, provide services to US companies or open a physical branch in the States. In all three cases it wold be more convenient to do business with a US entity, but you could still do business under your Indian company.
Nick,
In your case a decision on whether to register a company in the US or not should be based primarily on convenience. Since you can sell your products online to any person in the world by having them pay you using one of the international payment options (like credit cards, PayPal etc) it could suffice to have your company registered in India and paying all the taxes there. You might need to obtain an EIN if you use PayPal.
You might want to consider opening a company in the US if and when you intend to hire US contractors, provide services to US companies or open a physical branch in the States. In all three cases it wold be more convenient to do business with a US entity, but you could still do business under your Indian company.
