Online Canadian Business dealing in USA
Asked by: Alex - 26 May, 2011
I own an Internet business and I want to expand my business in the USA. My warehouse from where I will be shipping is in Vermont. Do I have to create an LLC and do I absolutely need a US bank account if I use Paypal ?
Best regards,
Alex
I own an Internet business and I want to expand my business in the USA. My warehouse from where I will be shipping is in Vermont. Do I have to create an LLC and do I absolutely need a US bank account if I use Paypal ?
Best regards,
Alex
Answered by: Robert Kowalski - 3 June, 2011
Alex,
You don't necessarily have to open an LLC in Vermont, but if you plan on doing business in the US I would recommend registering an LLC in one of the "incorporation friendly states" (such as Delaware or Wyoming). If you will establish real physical presence in one of the states such as Vermont you will be able to register a "foreign entity" of your LLC in that state. Delaware is attractive for retailers or those buying from wholesalers because it has no sales tax.
As for your company's bank account, I suppose if you are using a Paypal account and it's serving your business needs, then no it would not be absolutely necessary to have one. Keep in mind though, having a company bank account could help you establish business credit, which by itself would be a good reason to open one (and you can pretty much open a bank account in any state).
I hope you were able to find this answer helpful.
Alex,
You don't necessarily have to open an LLC in Vermont, but if you plan on doing business in the US I would recommend registering an LLC in one of the "incorporation friendly states" (such as Delaware or Wyoming). If you will establish real physical presence in one of the states such as Vermont you will be able to register a "foreign entity" of your LLC in that state. Delaware is attractive for retailers or those buying from wholesalers because it has no sales tax.
As for your company's bank account, I suppose if you are using a Paypal account and it's serving your business needs, then no it would not be absolutely necessary to have one. Keep in mind though, having a company bank account could help you establish business credit, which by itself would be a good reason to open one (and you can pretty much open a bank account in any state).
I hope you were able to find this answer helpful.
